EU car market stable in 2025 as EVs gain ground

New car registrations across the European Union slipped by just 0.1% in the first eight months of 2025 compared to the same period last year, according to the latest industry data from the European Automobile Manufacturers’ Association (ACEA).

The modest decline comes despite two consecutive months of positive growth, underlining the resilience of the market as consumers continue to pivot towards electrified vehicles.

Battery-electric vehicles (BEVs) secured a 15.8% share of the EU car market between January and August, up from 12.6% a year earlier. While this marks steady progress, analysts warn the uptake remains below the pace required to hit the bloc’s climate and electrification targets.

Hybrid-electric cars extended their lead as the most popular choice among buyers, capturing 34.7% of all registrations – equivalent to nearly 2.5 million units. Plug-in hybrids also gained traction, climbing to an 8.8% market share after strong growth in Spain (+99.9%), Germany (+61.2%), and Italy (+62.6%).

The transition has come at the expense of traditional engines. Petrol registrations dropped 19.7% to 2 million units, cutting market share to 28.1% from 34.9% a year ago. Diesel fared even worse, falling 25.7% to 9.4% of the market. France recorded the sharpest petrol decline (-33.5%), while Germany saw the steepest diesel drop (-25.2%).

Germany led BEV growth with a surge of 39.2%, followed by Belgium (+14.4%) and the Netherlands (+5.1%). France was the exception, posting a 2% dip over the year to date despite a strong August (+29.3% year-on-year).

Year-on-year comparisons for August alone underline the changing market dynamics: BEV registrations jumped 30.2%, hybrids rose 14.1%, and plug-in hybrids posted a sixth straight month of robust growth at +54.5%. By contrast, petrol fell 16.3% and diesel slid 17.5%.

Industry experts say the figures highlight both progress and challenges in Europe’s shift towards cleaner mobility. While demand for electrified cars continues to accelerate, the overall market remains flat – and electrification rates need to climb faster to stay on track with EU policy goals.