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Anthony Alaniz

Luxury Sedan Sales Are Dropping Across Europe. And There's a Reason

While the selection of mainstream sedans has dwindled in recent years in the United States, a handful of premium mid-size options remain. They’re not as popular here as they used to be, and even drivers in Europe are beginning to drift away from luxury sedans in favor of other options.

Mid-size premium sedan sales have fallen 19 percent through the first 10 months of the year in Europe. According to Automotive News Europe, citing Dataforce, sales of the BMW 3 Series were down 23 percent in Europe at the end of October. The Mercedes-Benz C-Class fell 14 percent, and while there was strong demand for the new Audi A5, every other model in the segment saw a sales decline. The all-electric BMW i4 had the smallest slip, falling just 1.6 percent.  

One reason cited for the decline was a 30 percent drop in fleet sales for the segment, with buyers drifting toward mid-size SUVs instead. As AN Europe notes, many of those SUVs are more functional than premium sedans and have a broader range of powertrain types available, including plug-ins. 

But those who bought a mid-size premium sedan most often opted for a gasoline engine, which accounted for 33 percent of sales. Diesel powertrains were second at 27 percent, followed by EVs at around 22 percent. PHEV sales were last at around 19 percent of the midsize premium sedan segment.   

Model Jan-Oct 2025 Sales % Change
BMW 3 Series 60,237 -23%
Audi A5 53,483 New
Mercedes-Benz C-Class 41,355 -14%
BMW i4 36,982 -1.6%
Volvo S60/V60 16,476 -35%
Polestar 2 14,099 -26%
BMW 4 Series 10,081 -12%
Audi A4 3,467 -94%
Alfa Romeo Giulia 2,825 -20%
DS No. 8  798 New

Most of the cars are ending up in Germany, with the country accounting for 37 percent of the segment’s market share so far. The United Kingdom was second with 16 percent, followed by Italy (6.2 percent), Sweden (4.7 percent), and Poland/France (4.2 percent).   

The BMW 3 Series, Mercedes C-Class, and Audi A4/A5 have been icons in the luxury space for decades, but even on their home continent, consumers are shunning them, and crossovers and SUVs are winning. 

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