New car sales in the European Union fell 18.3% in August to their lowest in three years, dragged down by double-digit losses in major markets Germany, France and Italy and sliding electric vehicle (EV) sales,

EV deliveries in the region’s biggest car market, Germany, fell 69% during August, fueling a 36% drop across the region.

The European automotive industry is facing a significant slowdown, driven by weakening demand for electric vehicles (EVs) and increased competition from cheaper Chinese alternatives. Recent reports highlight a sharp decline in EV sales,

The EV market in Europe is facing a “continual downward trajectory,” according to ACEA. In August, EV sales dropped 43.9%, while the overall market fell 18.3% year-on-year. Automakers seek a smoother transition to zero-emission mobility amid sluggish EV demand.

New car registrations in the European Union showed an 18% drop in August, witnessing declines in the four major markets of the region. Germany took the biggest hit with a drop of 27.8%, and France 24.