European Car Market | Italy August 2025: The Triumvirate of MG, Chery, and BYD

Produced by Zhineng Technology

In August 2025, Italy's new car market continued its sluggish trend, with total sales of 67,272 units, down 2.7% year-on-year. Cumulative sales for the year fell 3.7%, still 21.5% below pre-pandemic 2019 levels. Private consumption continued to shrink, while manufacturer self-registrations and leasing businesses supported the overall sales structure, raising concerns about market health.

From an energy structure perspective, gasoline and diesel models continued to decline sharply, while hybrid, plug-in hybrid, and pure electric vehicles maintained growth, with plug-in hybrids nearly doubling.

In terms of brand and model performance, local brand Fiat staged a strong rebound, with the Panda series remaining the sales pillar, while the new Grande Panda quickly entered the mainstream.

International brands showed mixed performance, with Kia's Sportage making its debut in the top ten, demonstrating the breakthrough potential of Korean models. Meanwhile, Chinese brands like BYD, Chery's Omoda and Jetour, and MG continued strong growth, becoming new variables in the market.

Changes in the Italian Market and Energy Structure

Italy's car market continued its weak performance in August 2025, with sales down year-on-year to 67,000 units, a cumulative decline of nearly 4%. Compared to pre-pandemic levels, the market size remains 285,000 units smaller, indicating a prolonged contraction phase.

Structurally

◎ Private car purchases fell 14.6%, with market share dropping to 55.1%, a significant decline from 62.7% in the same period last year. Consumer willingness to buy cars remains low amid high interest rates, inflationary pressures, and economic uncertainty.

◎ In contrast, manufacturer self-registrations grew 41%, while long-term and short-term leasing businesses rose 5.9% and 46.9% respectively, with dealer and leasing channels filling the gap left by retail.

The shift in powertrain types is even more pronounced.

◎ Traditional gasoline vehicles fell 13.9% year-on-year, with market share below 25%;

◎ Diesel vehicles saw a steeper decline of 41.4%, with market share shrinking to just 8.1%.

◎ LPG models also declined.

In stark contrast, hybrid and new energy vehicles showed growth:

◎ Hybrid vehicles grew 8.7% year-on-year, capturing nearly half the market and becoming the dominant force;

◎ Plug-in hybrids nearly doubled, with market share rising to 7.1%;

◎ Pure electric vehicles also grew 26.9%, accounting for nearly 5% of the market. The automotive market's energy structure is rapidly electrifying, though the base for pure electric vehicles remains small. Growth is primarily driven by policy incentives and new product launches, and whether the market can sustain expansion remains to be seen.

At the brand level

◎ Local brand Fiat was the biggest winner in August, with sales up 31.7% year-on-year, reclaiming the top spot. Its 9.3% market share remains slightly below the cumulative level for the year, but the strong performance of the Panda series has undoubtedly boosted market confidence.

◎ Toyota, Volkswagen, and Dacia all saw declines, while BMW, despite an 8.1% drop, maintained its historically high fifth position.

◎ French brands faced the most significant setbacks, with Renault, Peugeot, and Citroën showing mixed results. Renault and Peugeot fell by over 20%, while Citroën surged 75.4%, indicating a partial recovery driven by product updates.

At the model level

◎ Fiat Panda remained firmly at the top, up 24% year-on-year with a 6.1% market share.

◎ Dacia Sandero, despite a decline, held second place;

◎ Jeep Renegade grew 11%, returning to third.

◎ Toyota Yaris Cross ranked fourth,

◎ Dacia Duster fell to fifth.

◎ Competition in the mid-tier was fiercer, with MG ZS, Volkswagen T-Roc, and Toyota Yaris performing steadily, while the Ford Kuga faced greater pressure.

◎ The most notable was Kia Sportage's debut in the top ten, ranking tenth and setting a new record in the Italian market. This shows Korean brands are gradually breaking the traditional hierarchy, achieving breakthroughs in the mainstream compact SUV segment.

The Situation of Chinese Automakers

BYD's sales nearly tripled year-on-year, Chery's Omoda and Jetour combination almost doubled, and MG achieved double-digit growth. These brands defied the overall market downturn, reflecting Italian consumers' recognition of their price and configuration advantages.

◎ MG ranked 14th overall with 2,259 units sold, up 12.8% year-on-year. In Italy's SUV segment, the MG ZS broke into the top ten, with monthly sales reaching 1,358 units.

◎ BYD's performance was particularly notable, with August sales of 876 units, up nearly 293% year-on-year. The Seal U plug-in hybrid SUV alone accounted for 549 units, becoming a key entry point into Europe's mainstream family market.

◎ Chery's Omoda+Jetour combination also maintained strong growth, with monthly sales reaching 924 units, up nearly 200%, marking its first entry into the top 22.

◎ DFSK, though still small in scale, achieved 93 units sold, up over 150%, thanks to its low-cost multi-purpose models.

Summary

Italy's car market remained under pressure in August 2025, with weak private consumption and overall market decline. The decline of traditional fuel vehicles is inevitable, while hybrids and new energy vehicles have become growth drivers.