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European Car Market Sees Modest Growth Driven by EVs
(MENAFN) The European Union’s passenger car market expanded by 1.8% in 2025, with 10.63 million new vehicles registered, according to industry data. Across Europe—including the EU, the European Free Trade Association, and the UK—total new car sales rose 2.4% year-on-year to 12.96 million units.
Among major EU markets, Spain led the growth with a 12.9% increase, followed by the Netherlands at 1.7%.
Electric vehicles continued to drive the market’s expansion. Battery-electric vehicle (BEV) sales jumped 29.9% to 1.88 million units, making up 17.4% of total new car registrations. Spain recorded a 77.1% surge in BEV sales, while Italy and Germany saw increases of 44.2% and 43.2%, respectively.
Hybrid-electric vehicles (HEVs) also strengthened their presence, representing 34.5% of the EU market with 3.73 million units sold, up 13.7% from 2024. Plug-in hybrid electric vehicles (PHEVs) saw sales rise 33.4% to 1.01 million units.
In contrast, traditional internal combustion engine vehicles continued to decline sharply. Petrol car registrations fell 18.7%, reducing their market share to 26.6%, while diesel vehicles dropped 24.2%, leaving them with an 8.9% share. Most EU countries recorded double-digit declines for both petrol and diesel cars.
Among major EU markets, Spain led the growth with a 12.9% increase, followed by the Netherlands at 1.7%.
Electric vehicles continued to drive the market’s expansion. Battery-electric vehicle (BEV) sales jumped 29.9% to 1.88 million units, making up 17.4% of total new car registrations. Spain recorded a 77.1% surge in BEV sales, while Italy and Germany saw increases of 44.2% and 43.2%, respectively.
Hybrid-electric vehicles (HEVs) also strengthened their presence, representing 34.5% of the EU market with 3.73 million units sold, up 13.7% from 2024. Plug-in hybrid electric vehicles (PHEVs) saw sales rise 33.4% to 1.01 million units.
In contrast, traditional internal combustion engine vehicles continued to decline sharply. Petrol car registrations fell 18.7%, reducing their market share to 26.6%, while diesel vehicles dropped 24.2%, leaving them with an 8.9% share. Most EU countries recorded double-digit declines for both petrol and diesel cars.
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