The European electric vehicle (EV) market has continued its upward trajectory in the first two months of 2025, reaching a 15% market share. According to the European Automobile Manufacturers’ Association (ACEA), sales of battery-electric vehicles (BEVs) surged by 28.4% compared to the same period in 2024, amounting to 255,489 units. This significant growth was largely driven by Germany, Belgium, and the Netherlands, while France experienced a marginal decline of 1.3%.

Source: ACEA

Shifting trends in EU car market by power source

Battery-electric vehicles (BEVs) continued their rise, claiming 15.2% of the total market share in early 2025, up from 11.5% in the same period of 2024. Hybrid-electric vehicles (HEVs) emerged as the most popular choice among EU consumers, comprising 35.2% of the market, thanks to strong growth in France (+51.4%), Spain (+31.5%), Italy (+10.4%), and Germany (+9.8%). Meanwhile, the combined market share of petrol and diesel cars declined to 38.8%, a stark contrast to 48.5% in early 2024.

Electric vehicle market highlights

The BEV segment recorded double-digit growth in three of the EU’s four largest markets, which collectively accounted for 64% of all BEV registrations. Germany led with a 41% increase, followed by Belgium (+38%) and the Netherlands (+25%). France, however, saw a minor contraction of 1.3% in BEV sales.

Hybrid-electric cars also saw a robust increase in registrations, rising by 18.7% YTD in February 2025, totalling 594,059 units and capturing 35.2% of the EU market. Conversely, plug-in hybrid electric vehicles (PHEVs) experienced a decline of 5% in the January-February period, recording 124,947 units. This drop was primarily influenced by significant reductions in sales in Belgium (-65.3%) and France (-49.3%), leaving PHEVs with just a 7.4% market share.

In February 2025, YOY figures indicated a 23.7% rise in BEV registrations and a 19% increase in HEVs, whereas PHEV registrations declined slightly by 1.4%.

New car registrations decline across the EU

Despite the increase in EV sales, overall new car registrations in the EU declined by 3% year-to-date (YTD) in February 2025. Major markets such as Italy (-6%), Germany (-4.6%), and France (-3.3%) reported declines, whereas Spain bucked the trend with an 8.4% increase. On a year-on-year (YOY) basis, the decline stood at 3.4%, with Germany registering the steepest drop of 6.4%, followed closely by Italy at 6.2%.

Outlook for the EU automotive industry

The latest trends highlight the accelerating transition towards electric mobility in the EU, driven by increased consumer adoption and supportive policies. However, the overall downturn in new car registrations signals potential economic headwinds for the broader automotive market. The coming months will be crucial in determining whether the strong momentum in EV sales can offset declines in other vehicle segments and sustain long-term growth in the industry.