- Lancia’s European sales plummeted by 73% in January and February compared to 2024.
- Tesla, Smart, and Jaguar also struggled with significant sales declines to start 2025.
- Sales of gasoline and diesel vehicles continue to fall while EV and hybrid sales surge.
Tesla has been dominating headlines lately, largely due to its plummeting sales in Europe and other global markets. But here’s the thing: it’s not just Elon Musk’s electric empire in trouble. Lancia is facing its own crisis, with sales in Europe dropping by a staggering 73% so far in 2025. This steep decline makes it clear that the so-called “rebirth” of the Italian brand is going to be anything but smooth.
According to official sales data for the EU, EFTA, and UK regions provided by the ACEA (European Automobile Manufacturers’ Association), Lancia sold just 2,208 units in January and February 2025, a steep drop from 8,098 units during the same period last year. This decline is particularly striking considering the launch of a new generation of the Lancia Ypsilon supermini and the brand’s expansion outside Italy for the first time in years.
More: Tesla’s European Sales Have Collapsed, Down 45% As EV Market Surges 31%
For a bit of perspective, the old Lancia Ypsilon—discontinued after 13 years—sold nearly four times more units in the first two months of last year than the all-new, shiny model did. To make matters worse, the former was only available in Italy, while the new Ypsilon has already expanded to markets like France, Spain, Belgium, and the Netherlands. A drop of that magnitude certainly raises some serious questions.
Lancia’s Price Tag Problem
So, why this massive dip in sales? Well, one of the biggest factors is likely the higher pricing on the new Ypsilon’s mild-hybrid and electric variants compared to the non-electrified predecessor – something we’ve also seen with Stellantis brands in North America as well.
For a brand that’s been absent from many European markets for so long, it’s not surprising that buyers might be reluctant to shell out more cash for a car that feels a bit… neglected. Competing with well-established supermini brands doesn’t exactly help Lancia’s case, either.
Lancia is looking to rebound by opening 70 new showrooms across Europe by the end of 2025. Whether that’ll generate any real traction for the brand remains to be seen. The Ypsilon will eventually be joined by the Gamma flagship crossover in 2026, followed by a new version of the Delta hatchback in 2028.
Other Winners And Losers
Lancia isn’t the only one with a rough start to 2025. Alongside the 72.7% drop in Lancia’s sales, Tesla is also seeing a significant slump, with a 42.6% drop. Other brands experiencing notable sales declines include Smart (-55.4%), Jaguar (-53.4%), and Mitsubishi (-35.4%). Meanwhile, Stellantis brands like DS (-30.3%), Opel/Vauxhall (-27.2%), and Fiat (-26.9%) are all struggling. Porsche isn’t immune either, down 23.2% this year.
On the flip side, some brands are clearly having a moment. Alpine, for example, has seen a massive 137.8% sales increase, largely thanks to the launch of the A290 GT hot hatch. Cupra is also having a great year, up 42.3%, with 40,869 units sold, just shy of Seat’s 42,212 sales for the same period.
For Stellantis, Alfa Romeo is a bright spot with a 29.6% boost in sales, mostly thanks to the Junior subcompact SUV, which contributed 9,788 sales in just two months. Other companies enjoying positive results include Lexus (+32.2%), SAIC (+21.2%), and Renault (+18.5%). Volkswagen also saw a healthy 12% increase in sales, reaching 216,565 units. VW is currently the only brand with a double-digit market share in the EU, EFTA, and UK regions, holding steady at 11.1%.
Overall, the VW Group leads in Europe, having sold 525,346 units, up 4.3%. Stellantis follows with 310,091 sales, down 16.1%, while Renault Group (205,005 sales / +8.2%), Hyundai Group (156,526 sales / -5.5%), and Toyota Group (151,589 sales / -4.9%) round out the top five.
Europeans Love Hybrids And BEVs
On the powertrain front, Europeans are clearly embracing electrification. In the first two months of 2025, hybrid vehicles saw a significant jump, with 687,709 units sold, a 17.6% increase. EVs also continued their upward trajectory, with 330,584 units sold, marking a 31.4% increase.
Meanwhile, more traditional gasoline-powered cars saw a sharp decline, with sales dropping by 21.9% to 562,513 units. Diesel vehicles didn’t fare much better, falling by 27.5% to just 172,758 units.
EUROPEAN CAR SALES JAN-FEB 2025
