Stellantis N.V. (NYSE:STLA) shares are trading lower on Thursday following data released by the European Automobile Manufacturers Association (ACEA) showing a steep decline in new car sales across Europe in June.
Check out the current price of STLA stock here.
What To Know: According to a report by Reuters, Stellantis was among several major automakers hit by falling registrations as the industry grapples with global challenges, including weakening demand, increased competition and rising tariffs.
Among the brands Stellantis owns are Abarth, Alfa Romeo, Chrysler, Citroën, Dodge, DS Automobiles, Fiat, Jeep, Lancia, Maserati, Opel, Peugeot, Ram and Vauxhall
Registrations for Stellantis vehicles dropped 12.3% year-over-year last month, outpacing the overall European market decline of 5.1%. Other top automakers such as Volkswagen, Renault and Hyundai also reported year-over-year declines of 6.1%, 0.6% and 8.7%, respectively. Tesla saw its sales fall by 22.9%, with its European market share contracting to 2.8%, down from 3.4% a year earlier.
The decline in sales comes as automakers contend with multiple pressures. European manufacturers are facing steep import tariffs, including the current 25% rate on U.S. imports and the looming threat of a 30% tariff set to take effect Aug. 1 under a proposal by President Donald Trump. Companies are also under pressure to meet aggressive climate targets and pivot more rapidly toward electric vehicle production.
Despite an overall drop in car sales, electrified vehicle registrations in the EU continued to grow. Battery electric vehicle sales rose 7.8%, hybrid electric vehicles grew by 41.6% and plug-in hybrids increased 6.1%. Combined, the three categories made up nearly 60% of EU passenger car registrations in June, compared to 50% a year earlier.
These gains in EV adoption have not been enough to offset broader market weakness for legacy automakers. The rise of new, more agile brands, especially from China, has intensified competition. The market share of brands outside of ACEA, including Chinese firms like BYD, more than doubled to 4.5% in the latest report.
Stellantis, with significant exposure to the European market, is particularly vulnerable to shifts in demand and regulatory pressure in the region. Sales fell sharply in key countries such as Germany, France, and Italy, with declines of 13.8%, 6.7%, and 17.4%, respectively.
STLA Price Action: Stellantis shares were down 7.30% at $9.59 at publication Thursday, according to Benzinga Pro.
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