Global Auto Industry Shifts Gears in June 2025: Tariff Tremors, EV Momentum, and Production Setbacks
 

July 1, 2025

 

Here are the most significant automotive news stories from June 2025 around the globe:

 

  1. U.S. Auto Sales Slow After Tariff Frenzy

June saw a sharp drop in U.S. car sales from spring’s spurt—annualized at 15 million units, down from 17.6 million in April, marking the slowest pace in a year.

 

Average newvehicle prices in June edged up to around $48,800–$46,200 depending on the source.

 

Sales cooled after consumers rushed to buy ahead of the 25% import tariffs. Analysts warn prices may increase by another $2,000–$10,000 later this year. Resource.

 

  1. Italy NewCar Market Weakens

June auto sales in Italy dived 17.4% yearonyear, with 132,191 vehicles sold, the deepest drop of 2025.

 

Stellantis suffered a 32.8% fall in sales, reducing its market share from 28.1% to 24.6%. Resource.

 

  1. UK Auto Production Hits MultiDecade Lows

May saw the lowest UK vehicle output since 1949 (excluding the pandemic) amid a 31.5% drop in cars and 53.6% in commercial vehicles.

 

U.S. tariffs (25%) halved UK car exports to America in May; however, a new trade deal rolling out by late June cuts tariffs to 10% for 100,000 cars annually. Resource.

 

  1. Lotus Reverses UK Production Shutdown

Lotus halted plans to close its Hethel plant, preserving 1,300 UK jobs, following fresh government backing and alignment with Labour’s new industrial plan, which includes £2.5 billion boosters. Resource.

 

  1. Tesla Launches Robotaxi Pilots

Tesla began limited operations of its autonomous Robotaxi service in Austin in late June, deploying 10–20 Model Ys without human drivers (with safety monitors aboard).

 

Elon Musk pushes Tesla further into robotics and AI, though critics note Tesla’s reliance on cameras (vs. lidar) may affect safety. Resource.

 

  1. Xiaomi Enters EV Market with YU7 SUV

Chinese tech giant Xiaomi launched its YU7 EV on June 26, ahead of schedule, opening preorders priced between ¥253,500–¥329,900 (~$35,000–$45,000). Sales begin July with deliveries in August. Resource 1, Resource 2

 

  1. Ford Gains Access to Tesla Supercharger Network

Ford EV owners begin using over 12,000 Tesla Superchargers across North America via adapter; future models will natively support Tesla ports. Resource.

 

  1. Stellantis Resumes French Plant Operations

After a stamping press failure stopped production, Stellantis’s Sochaux (France) plant restarted operations on June 6. Resource.

 

  1. Automakers Push for U.S. Safety Reg Reform

Major automakers (GM, Toyota, VW, Hyundai) pressed U.S. regulators to modernize NHTSA rules, especially around autonomous vehicles, and tighten motorcycle ABS standards. Resource.

 

Context & Trends

  • Tariffs are reshaping global markets—U.S. tariffs drying up U.S. sales and hitting European exports, prompting trade-talk interventions.
  • Autonomy & EVs are accelerating—with Tesla’s Robotaxi launch and Ford’s Supercharger access deal showing shifts in infrastructure and strategy.
  • Tech players like Xiaomi entering EV space reflect further blurring between consumer tech and automotive industries.
  • Regulation and safety remain focal—from cybersecurity in China to safety-rule overhauls in the U.S.

 

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