European Auto Market | Italy May 2025: Local Brands Decline, Domestic Brands Gain Momentum

06/12 2025 508

In May 2025, the Italian new car market remained stable, experiencing a slight year-on-year decline of 0.2%, with cumulative sales mirroring last year's figures.

The powertrain landscape continues to shift towards electrification, with plug-in hybrid and pure electric models witnessing rapid growth. Despite the ongoing challenges faced by traditional local brands, market competition has diversified, with Chinese brands achieving significant breakthroughs, solidifying their presence in mainstream European markets.

01

Current State of the Italian Auto Market and Mainstream Trends

In May 2025, Italy registered 139,390 new cars, a marginal year-on-year decrease of 0.2%. Cumulative sales from January to May stood at 722,452 units, down 0.5% year-on-year, indicating a relatively stable market trend.

However, internal dynamics are in flux, with traditional fuel vehicles losing ground and new energy models gaining traction.

● Powertrain Dynamics

◎ Gasoline models' market share fell year-on-year to 25.9%, while diesel models plummeted to 9.9%, reflecting a rapid shift towards electrification in consumer preferences.

◎ Conversely, the overall market share of hybrid electric vehicles surged to 43.7%, with mild hybrids accounting for 30.9% and full hybrids for 12.8%, both exhibiting a steady upward trajectory.

◎ Plug-in hybrid models saw the most impressive performance, with a year-on-year increase of 94% and a market share of 6.4%.

◎ Pure electric vehicles grew by 41.1% year-on-year, boosting their share to 5.1%.

These figures underscore the growing acceptance of electrification technology among Italian consumers.

● Brand Dynamics

◎ Italian local brand Fiat continued to lose market share, holding just 8.6% in May, marking consecutive months of decline. This year, Fiat's over-reliance on the electric version of the 500 model has diminished its product appeal. Moreover, the delay in launching the new Panda model has significantly impacted sales.

◎ Toyota ranked second despite a 0.8% year-on-year decline, maintaining robust overall performance.

◎ Volkswagen came in third, with sales decreasing by 6.4% year-on-year.

◎ Peugeot and Dacia stood out with year-on-year increases of 31.5% and 67.8%, respectively, emerging as the few mainstream brands experiencing significant growth.

● Model Dynamics

◎ The Fiat Panda remained the top-selling model but saw its market share dip to 5.9%, the lowest of the year, accounting for nearly 70% of Fiat's total sales, highlighting the risks associated with a single-model strategy.

◎ The Jeep Avenger ranked second, with a year-on-year increase of 25.5%, where the plug-in hybrid variant remained the mainstay, accounting for nearly 90% of sales.

◎ The Peugeot 208 debuted in the top three Italian sales, surging by 62% year-on-year.

◎ Dacia Sandero and Duster ranked fourth and sixth, respectively, with Duster experiencing a remarkable 150% increase.

◎ The Toyota Yaris Cross placed fifth, recording a slight increase.

◎ The Fiat 600 made a notable impression, surging nearly fourfold year-on-year to rank 11th, becoming a rare bright spot for Fiat.

● Sales Channel Dynamics

◎ Private car purchases accounted for 49.6%, lower than the same period last year.

◎ The leasing market expanded further, with long-term and short-term leasing combined accounting for over 32%, reflecting a growing diversity in car usage patterns.

02

Chinese Brands: Progress and Challenges in the Italian Market

In May 2025, Chinese brands continued their robust growth momentum since the beginning of the year, with BYD and Omoda/Jetteur emerging as standout performers.

BYD sold 1,945 vehicles in May, soaring by 3640.4% year-on-year, continuously setting new monthly sales records in the Italian market. Cumulative sales from January to May amounted to 7,601 vehicles, up over 27 times compared to the same period last year. Although its current market share stands at 1.4%, its growth rate far outpaces the industry average, demonstrating efficient progress in product, brand, and channel development.

This growth is largely attributed to the launch of new models such as the Seal U, whose design resonates with European user preferences, striking a balance between price and features. Combined sales of Omoda and Jetteur surged by 4840% year-on-year.

Additionally, MG maintained steady growth in Italy, selling 4,299 vehicles in May, up 16.1% year-on-year, ranking highest among Chinese brands. Its cumulative sales from January to May exceeded 25,000 vehicles, placing it 14th among all brands. MG boasts a mature lineup of plug-in hybrid and pure electric models, with vehicles like the MG4 and EHS establishing brand recognition, embodying the "cost-effective electric car" label.

The Italian market, characterized by a diverse consumer base with a high proportion of price-sensitive buyers, presents both an opportunity and a challenge for Chinese brands.

The rapid expansion of plug-in hybrid and pure electric models aligns with Chinese automakers' technical strengths, giving them a natural advantage at the product level. Furthermore, the growth of the leasing market opens up a new avenue for the rapid penetration of affordable Chinese electric vehicles.

Summary

Overall, the Italian auto market in May 2025 exhibited a trend of "superficial stability amidst structural transformation." Traditional brands are navigating the transition towards electrification and realigning their brand strategies, while emerging brands are seizing the moment to fill market gaps.

For Chinese auto brands, the Italian market presents both a challenge and an opportunity. With an increasingly diverse product portfolio and established brand recognition, Chinese automakers are poised to make continuous breakthroughs in this emblematic European market, writing a new chapter in their overseas expansion.

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