In the first half of 2025, the EU economy performed differently from country to country, which also affected the automotive industry. The unpredictable environment—U.S.-China tariffs, inflationary pressures in the Central and Eastern European (CEE) region, and a decline in consumer confidence—is also reflected in the automotive industry’s performance. Nevertheless, the region remained on a growth trajectory. AutoWallis assessed trends in the region in its semi-annual analysis

AutoWallis has released the latest edition of its regional automotive market analysis, the AutoWallis CEE Automotive Report, which analyzes automotive market trends for the first half of 2025. Compiled by the company’s experts, the report provides a detailed overview of regional results and the automotive industry and market trends expected to shape the second half of the year.

As the leading integrated automotive retail and mobility service provider in the Central and Eastern European region, AutoWallis represents 29 brands across 17 countries and has 30 years of experience. In its biannual AutoWallis CEE Automotive Report, AutoWallis analyzes the automotive market performance of countries in the Central and Eastern European region. The report covers the market shares of various powertrains—gasoline, diesel, all-electric, plug-in hybrid, self-charging hybrid, and others—and presents trends in the region’s passenger car and light commercial vehicle fleets, as well as the automotive market trends expected for this year.

The CEE region outperformed the EU

The first half of 2025 was characterized by uncertainty. Although European economies had already experienced the effects of the Russia-Ukraine war in recent years, industrial production and retail sales volumes declined due to the direct and indirect impacts of the U.S. punitive tariffs announced at the beginning of the year and the protective tariffs imposed by the EU on Chinese automakers.

Taken together, these factors held back GDP growth: according to Eurostat, the European Union recorded an average GDP growth rate of 1.5% in the first quarter, though this was distributed quite unevenly among member states. By comparison, the Central and Eastern European (CEE) region outperformed the EU average with an average growth rate of 1.8%.

Across the entire European Union, passenger car sales fell by 1.9% in the first half of 2025, a trend that can be attributed to several factors: In Western Europe, sales of cars equipped with internal combustion engines fell significantly, partly due to rising prices, stricter emissions standards, and changing consumer behavior (shift toward electric and hybrid vehicles). The slump in the German economy—a major contributor at the EU level—was exacerbated by the unexpected termination of subsidies for electric cars at the end of 2023, which led to a significant price increase; moreover, negative economic outlooks and high financing costs dampened consumer enthusiasm for car purchases. In France, similar factors—slow growth and rising living costs—held back demand, while declining subsidies and concerns about the underdeveloped EV infrastructure created uncertainty among BEV buyers. In Italy, high inflation and interest rates limited household spending, while the slow growth of EV penetration, a weaker subsidy environment, and underdeveloped charging infrastructure had a negative impact on sales.

In contrast, AutoWallis’s relevant markets in the CEE region largely managed to grow. In terms of new passenger car registrations, the countries of the CEE region* posted a +0.8% increase, in contrast to the decline in the EU average. Within the region, Croatia recorded the highest growth rate (+6%), but the performance of the Austrian (+5.9%) and Slovenian (+5.7%) markets was also outstanding. The sharpest decline was observed in the Romanian market (-22.4%).

In terms of powertrain distribution, the market has shifted in recent months. Hybrid-electric cars are now the most popular choice in the EU: models with this powertrain accounted for the largest share (34.8%) of new registrations over the past six months. Previously the most popular gasoline-powered cars have slipped to second place (28.4%), while battery electric vehicles (BEVs) remain the third most popular choice among buyers (15.6%).

The economic difficulties facing the EU are reflected in the registration statistics for light commercial vehicles (LCVs). Across the entire EU market, sales fell by 13.2%, primarily due to declines in the largest markets (Germany, France, and Italy). Spain was the best-performing market in the entire EU, but the 11.2% growth seen there was not enough to offset the declines in other markets. Among the 27 EU member states, LCV registrations increased in a total of 6 countries. The most significant decline was observed in Austria (-34.7%), while the Polish market—which accounts for nearly one-third of the region—posted modest growth (+0.6%).

A shift is also evident in the powertrain segments of light commercial vehicles: registrations of battery electric vehicles (BEVs) increased significantly in the first half of 2025. On average across the EU, registrations of BEV LCVs rose by +42.1%. This trend was evident across the entire EU, where the share of BEV LCVs increased in every member state except two (Sweden and Estonia)—and half of these markets even recorded growth rates exceeding 100%. Despite a decline in total LCV registrations, registrations of BEV LCVs in Austria—the CEE region’s largest BEV market, accounting for one-third of the total—rose by +48.5%. This contributed significantly to the region’s overall growth rate (+52.5%).

The market share of Chinese automakers in the European Union is expected to grow further by the second half of 2025. By 2025, Chinese manufacturers will have nearly doubled their market share: the 2.7% market share in 2024 will have grown to 5.1% by 2025. This figure is expected to grow further, as only a small fraction of the major Chinese car brands are currently present in Europe, but several major manufacturers are planning to enter the market within the next 12 months. Many of them also plan to establish manufacturing capacity in Europe, which could provide a solution to the current tariff environment. Chinese automakers’ rapid product development cycles (22–24 months vs. 3–5 years) are also having a significant disruptive impact on the industry. In addition, to enhance their competitive advantage, Chinese brands are entering European markets with both internal combustion and plug-in hybrid models.

Strict EU regulations on emissions continue to pose a challenge for European manufacturers. Although companies operating on the continent were previously granted a grace period until 2027, they will need to make significant investments if they want to avoid heavy fines.

Most European automakers and their suppliers expect declining revenues or losses for the full year due to profitability pressures and supply chain disruptions, citing market uncertainties, geopolitical instability, and a lack of competitiveness as the main causes.

Gábor Ormosy, CEO of AutoWallis, pointed out that in the 17 countries considered part of AutoWallis’s operating area, the rate of growth in the automotive market continues to exceed the EU average. This further validates AutoWallis’s growth strategy, which seeks to capitalize on the diversified growth potential of the CEE region’s markets through acquisitions and business developments that have already been implemented or are planned. With the group’s growing sales, it is moving ever closer to its 2028 target of selling approximately 100,000 vehicles—75 percent of which will be generated by AutoWallis’s Wholesale Division, while the remaining 25 percent will come from the Retail Division. Today, more than 50% of total revenue consistently comes from outside Hungary.

*Countries analyzed: Poland, the Czech Republic, Slovakia, Austria, Hungary, Slovenia, Croatia, Romania, Bulgaria, Greece; data sources: ACEA, KSH, Eurostat

AutoWallis:

AutoWallis is the leading integrated automotive retail and mobility service provider in Central and Eastern Europe, operating in 17 countries across the region (Albania, Austria, Bosnia and Herzegovina, Bulgaria, the Czech Republic, North Macedonia, Greece, Croatia, Kosovo, Poland, Hungary, Moldova, Montenegro, Romania, Serbia, Slovakia, and Slovenia). Brands represented by the Group’s Wholesale Division include Alpine, BYD, Dacia, Isuzu, Farizon, Jaguar, KGM, Land Rover, MG, NIO, Nissan, Opel, Renault, and Saab (for parts), as well as XPENG; while the brands represented by the Retail division include BMW passenger cars and motorcycles, BYD, Dacia, Ford, Isuzu, Jaguar, KGM, KIA, Land Rover, Maserati, Mercedes-Benz, Mercedes-Benz Trucks, MINI, Nissan, Opel, Peugeot, Renault, Suzuki, Toyota, JóAutók.hu, and AUTO-LICIT. HU, while the Mobility Services Division operates on the Hungarian market under the wigo carsharing, wigo fleet, and Sixt rent-a-car brands.

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For more information:

Orsolya Györke Tel: +36703304781 E-mail: pr@autowallis.hu

AutoWallis CEE Automotive Report, First Half of 2025