Battery EVs underpin rise in EU car sales in 2025

27th Jan 2026 07:08

(Sharecast News) - Fresh data from the European Automobile Manufacturers' Association on Tuesday showed that new car registrations in the European Union rose by 1.8% in 2025 to 10.8 million vehicles, extending a gradual recovery in demand, though overall volumes remain well below pre-pandemic levels as high prices and strained household budgets continued to weigh on buyers.

The growth was driven increasingly by electrified vehicles.

Battery-electric cars accounted for 17.4% of EU registrations last year, up from 13.6% in 2024, with 1.88 million units sold.

Hybrid-electric vehicles remained the most popular powertrain, capturing 34.5% of the market, while plug-in hybrids strengthened their position with a 9.4% share.

By contrast, the combined share of petrol and diesel cars fell sharply to 35.5%, down from 45.2% a year earlier.

Electric vehicle momentum was strongest in the bloc's largest markets.

Germany recorded a 43.2% jump in battery-electric registrations, while the Netherlands, Belgium and France also posted double-digit growth.

Together, those four countries accounted for nearly two-thirds of all battery-electric sales in the EU.

Hybrid registrations climbed to 3.73 million units, supported by solid gains in Spain, France, Germany and Italy, while plug-in hybrid volumes surged in southern Europe, particularly in Spain and Italy.

The shift away from combustion engines accelerated over the year.

Petrol car registrations dropped 18.7% in 2025, with steep declines across all major markets, including a 32% fall in France, while diesel sales sank 24.2%, leaving the fuel with an 8.9% market share.

December data highlighted the pace of change, with year-on-year growth of 51% for battery-electric vehicles and 36.7% for plug-in hybrids, as electrified models together accounted for 67% of EU registrations that month.

In December, battery-electric sales overtook petrol cars for the first time.

Competition in Europe's EV market intensified as Chinese manufacturers expanded rapidly.

BYD posted triple-digit growth in December and more than tripled its annual European sales in 2025, while registrations at Tesla fell sharply over both the month and the full year, reflecting tougher competition, pricing pressure and shifting incentives.

Across the wider European market, including the UK and the European Free Trade Association, total car sales rose 2.4% in 2025 to 13.3 million vehicles, with a stronger finish to the year.

ACEA cautioned, however, that the recovery remained fragile despite rising electrification, as regulatory uncertainty, subsidy changes and profitability challenges for EVs continue to shape the pace of the transition.

Reporting by Josh White for Sharecast.com.