A total of 1.88 million new vehicles were registered in 2025 across the European Union, marking an increase of 1.8% compared with the previous year, according to figures from the European Automobile Manufacturers' Association (ACEA), News.Az reports, citing AFP.
Despite the increase, overall sales remain below levels seen before the Covid-19 pandemic, the industry body said in a statement.
While total market growth was modest, consumer preferences continued to shift toward hybrid and electric vehicles. Sales of hybrid-electric cars rose by 13.5% in 2025, giving them a 34.5% share of the EU market. This pushed hybrids ahead of petrol-powered cars, whose share fell to 26.6%.
Battery-electric vehicle sales also posted strong gains, rising by 30% to account for 17.4% of total registrations. However, ACEA noted that the increase followed a weak performance in 2024 and said sales would need to grow further to remain aligned with the EU’s long-term transition targets.
Sales of plug-in hybrid vehicles increased as well, while demand for petrol and diesel cars declined. Combined, petrol and diesel vehicles accounted for 35.5% of the market in 2025, down sharply from 45.2% a year earlier.
Among manufacturers, Volkswagen Group strengthened its position as Europe’s top-selling automaker, with sales rising by 5.5% over the year. France’s Renault recorded similar growth, while Stellantis, which owns brands including Peugeot and Fiat, saw sales decline by 4.7%.
Chinese automakers continued to expand their presence in the EU market. BYD tripled its sales in the bloc, albeit from a relatively small base, while SAIC Motor, owner of the MG brand, reported sales growth of roughly one-third.
In contrast, sales of vehicles produced by Tesla dropped by nearly 38% last year. The electric carmaker has faced reputational challenges in Europe linked to its association with billionaire Elon Musk, who previously backed US President Donald Trump before later falling out with him, and who has also publicly endorsed Germany’s far-right Alternative for Germany (AfD).
