EU car market slides in H1 2025 as electric shift accelerates

New passenger car registrations across the European Union declined by 1.9% in the first half of 2025 compared to the same period last year, according to the latest data released by the European Automobile Manufacturers’ Association (ACEA).

June 2025 proved particularly difficult, with registrations down 7.3% year-on-year (YOY), marking one of the steepest monthly drops in recent years. Despite the downturn, battery-electric and hybrid-electric vehicles continued to make inroads, eating further into the shrinking market share of petrol and diesel models.

Electric vehicles edge forward

Battery-electric vehicles (BEVs) claimed a 15.6% share of the EU market in H1 2025, up from 12.5% a year earlier. A total of 869,271 new BEVs were registered, bolstered by strong performances in three of the EU’s four largest markets: Germany (+35.1%), Belgium (+19.5%), and the Netherlands (+6.1%). France, however, bucked the trend with a 6.4% decline.

Hybrid-electric vehicles (HEVs) maintained their position as the most popular powertrain type in the EU. With 1.94 million units registered between January and June, HEVs accounted for 34.8% of the market, up sharply from the year before. All four of the bloc’s largest markets saw gains: France (+34.1%), Spain (+32.8%), Italy (+10%), and Germany (+9.9%).

Plug-in hybrid electric vehicles (PHEVs) also experienced a surge, with registrations rising 41.6% YOY in June alone, marking the fourth consecutive month of strong growth. Cumulatively, 469,410 PHEVs were registered in H1 2025, pushing their market share up to 8.4% from 6.9% the year before. Key contributors included Germany (+55.1%), Spain (+82.5%), and Italy (+56.3%).

ICE sales decline sharply

Petrol and diesel vehicles continued their retreat as electrification gains momentum. Petrol car registrations fell 21.2% in H1 2025, totalling 1.58 million units and reducing market share to 28.4%, down from 35.4% in H1 2024. France led the contraction with a 33.7% drop, followed by Germany (-27.8%), Italy (-17.2%), and Spain (-13.4%).

Diesel cars fared even worse, with registrations plummeting 28.1% over the same period. By the end of June, diesel vehicles made up just 9.4% of the EU market. The June YOY figures were equally stark: petrol vehicle registrations declined by 25.4%, while diesel saw a 34.1% contraction.