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Auto Finance Sponsored by Auto Finance News EU new car registrations rise 1.8% in 2025 as EVs gain ground Published: 28th January 2026 Share New car registrations in the European Union increased by 1.8% in 2025, according to the latest industry data from the European Automobile Manufacturers’ Association (ACEA), although overall volumes remain significantly below pre-pandemic levels. The modest growth was driven largely by rising demand for electrified vehicles, with battery-electric, plug-in hybrid and hybrid-electric models all strengthening their position in the market. Electric and hybrid vehicles expand market share Battery-electric cars (BEVs) achieved a 17.4% share of the EU market in 2025, up from 13.6% a year earlier. A total of 1,880,370 new BEVs were registered over the year, supported by double-digit growth in the bloc’s largest markets, including Germany (+43.2%), the Netherlands (+18.1%), Belgium (+12.6%) and France (+12.5%). Hybrid-electric vehicles (HEVs) remained the most popular powertrain choice, capturing 34.5% of all new registrations, with demand rising in Spain (+23.1%), France (+21.6%), Germany (+8%) and Italy (+7.9%). In total, 3.7 million new hybrid-electric cars were registered. Plug-in hybrids (PHEVs) continued their upward trend, with registrations reaching 1,015,887 units, representing a 9.4% market share – up from 7.2% in 2024. Growth was particularly strong in Spain (+111.7%), Italy (+86.6%) and Germany (+62.3%). In December alone, the year-on-year variation showed a 51% surge in BEV registrations and a 36.7% increase in PHEVs, while HEVs rose by 5.8%. Petrol and diesel decline continues Traditional internal combustion engine vehicles continued to lose ground. Petrol car registrations fell 18.7% in 2025, with sharp declines in France (-32%), Germany (-21.6%), Italy (-18.2%) and Spain (-16%). Petrol now accounts for 26.6% of the EU market, down from 33.3% the previous year. Diesel registrations dropped 24.2%, reducing the fuel type’s share to 8.9% in 2025. December saw further steep declines, with petrol down 19.2% year on year and diesel down 22.4%. Market shifts underscore ongoing transition The combined share of petrol and diesel cars fell to 35.5%, compared with 45.2% in 2024, marking a significant shift in buyer preferences. With electrified vehicles now accounting for more than 60% of new EU registrations, 2025 strengthened the bloc’s trajectory toward cleaner mobility, though analysts note that further growth will be required to stay on track with long-term climate targets. Lisa Laverick Editor - Finance Connect Sign up to our newsletter Featured Stories NewsFleet vehicle ageing trend may have reached “new normal”, says epyx NewsRegulatory uncertainty slows fleet sustainability progress News88% of EV drivers say government is failing net zero transition, Zenith finds Auto Finance