Latest news with #sales decline
New York Times
23-07-2025
- Automotive
- New York Times
Tesla Expected to Report Falling Profit as Car Sales Fall
Tesla is expected to report on Wednesday a slump in profit, the third quarterly decline in a row, as the company cut car prices in an attempt to revive sales. Analysts estimate that the company earned $1.2 billion from April to June, according to Bloomberg, down from $1.4 billion a year ago. Sales are expected to have fallen to $22.6 billion from $25.5 billion in the second quarter of 2024. Tesla has not reported an increase in quarterly profit since the third quarter of 2024. Tesla's weak earnings are likely to reinforce concern among some investors that Elon Musk is neglecting the car business while he focuses the company's resources on autonomous driving software, self-driving taxis and humanoid robots. Mr. Musk has said those technologies will make Tesla the most valuable company in the world. Tesla has begun testing a limited self-driving taxi service in Austin, Texas. Wall Street has largely bought into that vision, and the company's share price is up around 50 percent since early April. But such taxis and robots are not yet generating significant revenue for Tesla, and the company remains reliant on the car business to finance Mr. Musk's futuristic plans. Tesla's sales have been losing momentum because it is not offering more affordable and appealing new models even as other carmakers like BYD of China have rolled out many new vehicles while slashing prices. In addition, Mr. Musk's support for right-wing political causes has alienated many electric car buyers in Europe and the United States and has distracted him from running the company. Last month, he announced plans to form a new political party in the United States after his relationship with President Trump deteriorated. Want all of The Times? Subscribe.
Yahoo
23-07-2025
- Automotive
- Yahoo
Europe's new car market reverses in June amid rising Chinese competition
Europe's new car market posted a sharp downturn in June, with monthly registrations falling by 4.4% year-on-year to 1.25 million units, according to data from JATO Dynamics covering 28 European markets. The decline was led by steep drops in Italy (-17%), Belgium (-16%), and Germany (-14%), while Romania recorded an alarming 50% fall in volumes. 'This is not an isolated dip,' said Felipe Munoz, Global Analyst at JATO Dynamics, a UK-based provider of automotive data, analysis, and intelligence. 'Persistently high prices, economic uncertainty, and the long tail of the pandemic are weighing on consumer confidence.' He noted that the region has lost over 2.5 million units in annual sales since 2019. So far this year, 6.84 million new cars have been registered across the region — 17,728 fewer than in the same period last year, marking a 0.3% year-on-year decline. Chinese brands surge As Europe's overall market contracts, Chinese automakers are gaining ground rapidly. In the first half of 2025, their market share nearly doubled to 5.1% — just shy of Mercedes-Benz (5.2%) and ahead of Ford (3.8%). In June alone, Chinese brands outsold Mercedes. Driving this growth are five key players: BYD, Jaecoo, Omoda, Leapmotor, and Xpeng. BYD's aggressive pricing helped it register over 70,500 units in H1 — up 311% year-on-year — with 15,565 units in June alone. Its Seal U plug-in hybrid tied with the Volkswagen Tiguan as the best-selling PHEV last month. Leapmotor, boosted by strong sales of the T03 and C10, registered more than 8,300 units in June. Meanwhile, Xpeng emerged as the leading high-end Chinese brand, with 8,338 units sold in H1 — most of them G6 SUVs. Legacy brands struggle Major players are feeling the heat. Stellantis saw its market share fall to 15.3% in H1, its lowest since the group's creation in 2021. Registrations dropped by 8.6% in the first half, and 11.7% in June. 'Stellantis is suffering from a lack of new models and a heavy reliance on more expensive BEVs,' Munoz said. Tesla also saw market share shrink, falling from 2.4% in H1 2024 to 1.6% this year — overtaken by SAIC-owned MG. The updated Model Y has yet to deliver a significant sales boost, with registrations up just 0.1% year-on-year in June. BEVs break one-million barrier Despite headwinds, battery-electric vehicle (BEV) registrations passed the one-million mark for the first time in H1 — totalling 1.19 million units, up 25% year-on-year. June's BEV growth, however, slowed to 15%. BEVs now account for 17.4% of the new car market, led by Norway, Denmark, and the Netherlands. Ford and Volkswagen Group posted strong increases in BEV share, while BYD and SAIC shifted toward other powertrains amid tariff concerns. Renault dominates model rankings The Renault Clio topped the sales charts in June with over 27,200 registrations, ahead of the Tesla Model Y. For H1, the Dacia Sandero — also part of Renault Group — took the top spot overall. Among the fastest-growing models were the MG3 (+258%), Fiat/Abarth 600 (+400%), and Audi A5 (+149%). New entrants like the Renault Symbioz and Jaecoo 7 also made strong debuts, registering 41,730 and 37,700 units respectively. Europe's auto market remains under pressure as macroeconomic conditions weigh on consumer demand. Yet, in this uncertain environment, the rise of Chinese brands and the continued growth of BEVs highlight a market in rapid transition. As Munoz put it, 'The post-pandemic market reality is taking shape — and it's a very different landscape from what we knew just a few years ago.' "Europe's new car market reverses in June amid rising Chinese competition" was originally created and published by Motor Finance Online, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Guardian
17-07-2025
- Business
- The Guardian
Frasers Group sales fall amid ‘challenging' luxury market and retreat from gaming
A 'challenging' luxury market and retreat from gaming have prompted a fall in sales and profits at Mike Ashley's Frasers. The group, which is majority owned by the billionaire former Newcastle United owner, said sales fell 7.4% to £4.7bn and pre-tax profits slid 24% to £379.5m as it closed some of its House of Fraser department stores and Game video game shops. Sales in its 'premium lifestyle' division, which includes Flannels, House of Fraser and brands such as Pretty Green bought from JD Sports, slumped almost 15% as it said 'the luxury market continued to be challenging', although Frasers said it was 'now showing some early signs of improvement'. Many luxury businesses, including the UK's Burberry and Mulberry, have struggled amid a slowdown in spending by aspirational shoppers. That group of consumers, who typically treat themselves to an occasional luxury fashion item, have seen their budgets constrained by high interest rates, increased household bills and rising prices. Despite the problems, Frasers said its 'long-term ambitions for the luxury business remain unchanged' and it had consolidated its store estate to 'further strengthen our position'. The FTSE 250 listed group said that after 'an especially weak period' in the wake of last October's budget, 'UK consumer confidence and trading conditions improved into 2025, and recent sales trends have been more encouraging'. Adjusted profits rose 2.8% to £560m, it said. It is expecting underlying profits similar to this year as it said it was working to offset at least £50m of additional costs linked to changes made in the budget, including an increase in employers' national insurance contributions. The changes, introduced in April, have already provoked a backlash from business groups against the chancellor, Rachel Reeves, who is widely expected to be forced to raise taxes again in her autumn budget. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion Frasers said it would continue to invest in improving the image of its Sports Direct chain, which had a rise in sales. This improvement, however, was offset by closures of its Game video games outlets and falling sales at its Studio Retail online business, leading to an overall fall of 7.2% in Frasers' sports division. The company said it was investing in Sports Direct with a 'significant recent step up in international expansion'. It continued to open outlets for its Flannels luxury streetwear chain, including in Leeds and Sheffield. Michael Murray, the chief executive of Frasers, said: 'We accelerated our international expansion, announcing partnerships in Australia, Asia and [the Middle East and Europe], to further build Sports Direct into a truly worldwide proposition. 'Our relationships with the world's best global brands, including Nike, Adidas and Hugo Boss, are the strongest they have ever been, and our ambitious growth plans are now strengthening and scaling these partnerships even further.'
Malay Mail
16-07-2025
- Automotive
- Malay Mail
MAA: Vehicle sales down 4.6pc in first half of 2025, target remains unchanged
KUALA LUMPUR, July 16 — Malaysia's new vehicle sales fell 4.6 per cent in the first half of 2025 compared to the same period last year, the Malaysian Automotive Association (MAA) said today. A total of 373,636 units were sold from January to June, down from 391,451 units in the corresponding period in 2024. MAA attributed the decline to several factors, including a high base effect from last year's record-breaking total industry volume (TIV) of 816,747 units, as well as a sharp drop in January sales following a surge in advance purchases the month before. 'Advance purchases in December 2024 affected sales in January 2025. Highest monthly TIV of 81,735 units recorded in December 2024 compared to January 2025 TIV of 50,397 units,' the association said in its mid-year sales and production review released today. December 2024 saw a record 81,735 units sold, while sales in January 2025 dropped to 50,397 units. Demand for commercial vehicles also declined, partly due to the end of diesel subsidies in June 2024. Sales in this segment fell 21 per cent to 26,552 units. Passenger vehicle sales dropped three per cent to 347,084 units. Despite the slower start to the year, MAA is maintaining its 2025 target of 780,000 units, citing continued economic growth and lower interest rates. It also expects higher demand for hybrid and small, affordable cars following the reduction in fuel subsidies. Factors supporting the projection include Malaysia's GDP growth forecast of between 3.5 and 4.5 per cent, Bank Negara Malaysia's recent OPR cut to 2.75 per cent, and sustained demand for hybrid electric vehicles (xEVs) and entry-level A-segment models, particularly after the removal of petrol subsidies in the second half of the year. 'The forecast remains in line with MAA's early projection of 780,000 units for 2025, which is 4.5 per cent lower than last year,' it said. So far, the industry has achieved 48 per cent of the full-year target, MAA added. Sales of xEVs rose 36 per cent year-on-year to 30,573 units, while SUVs saw the largest gain in volume, increasing to 99,891 units from 95,307 in the same period last year. Total industry production for the first half of 2025 fell 10 per cent to 352,626 units. — AFP
