Hybrid vehicles (HEVs) dominated the European Union car market in 2025, while battery electric vehicles (BEVs) continued to grow rapidly in popularity. As electrification gains momentum, pure petrol and diesel cars are now losing ground even faster than before, with BEVs even surpassing pure internal combustion engine (ICE) in monthly vehicle sales for the first time.
According to a report published by the European Automobile Manufacturers’ Association (ACEA), total new vehicle registrations in the EU reached 10.8 million units in 2025, a 1.8% increase from 10.6 million in 2024. However, this figure still remains below pre-pandemic levels, the association noted.
Of the 10.8 million vehicles registered, HEVs led the market with a 34.5% share, equivalent to 3.7 million units, reflecting a strong 13.7% year-on-year (YoY) growth. Petrol and diesel vehicles followed with a combined market share of 35.5%, a significant drop from 45.2% in 2024.
While demand for pure petrol and diesel cars continued to decline, battery electric vehicles (BEVs) recorded the fastest growth in 2025. BEV registrations rose to 1.88 million units, representing a 17.4% market share and a 29.9% YoY increase and signalling a rapid shift toward full electrification.
The momentum for BEVs peaked in December 2025, when they outsold pure petrol cars for the first time. BEV sales in December surged by 51% YoY to 217,898 units and captured a marketshare of 22.6%, while petrol car registrations fell by 19.2% YoY to 216,492 units during the same period.
Among European manufacturers, several major groups recorded solid year-on-year (YoY) growth, including BMW (+6.4%), Renault Group (+6.3%), and Volkswagen Group (+5.5%).
According to E-Mobility Europe Secretary General Chris Heron, as reported by Reuters, this growth may be attributed to European brands adapting more quickly to market demand through the introduction of more affordable battery electric vehicle (BEV) models.
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While European brands continue to post steady gains, the rapid rise of Chinese new energy vehicle (NEV) manufacturers in Europe is becoming increasingly difficult to ignore. BYD and SAIC Motor (MG Motor’s parent company) recorded especially strong growth last year, with BYD posting a 227% surge in sales, while SAIC Motor achieved a 33.9% increase — highlighting the growing competitiveness of Chinese brands in the European market.
Europe’s revised 2035 policy now appears more realistic, especially given the strong uptake of HEVs. By requiring a 90% cut in vehicle emissions instead of an outright ICE ban, it gives both buyers and carmakers greater flexibility during the transition. While the market’s direction over the next decade remains uncertain, current trends suggest the region may still be on track to meet its long-term emissions goals.
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