Auto Finance Sponsored by Auto Finance News New EU car registrations fall in January 2025 Published: 25th February 2025 Share In January 2025, new EU car registrations declined by -2.6%, according to the European Automobile Manufacturers’ Association (ACEA). Notably, the bloc’s major markets saw declines, with France (-6.2%), Italy (-5.8%), and Germany (-2.8%). Spain conversely recorded a 5.3% increase. In January, battery electric vehicles (BEVs) made up 15% of the market share, up from the low baseline of comparison of 10.9% in January 2024. Hybrid-electric vehicles surged ahead, commanding nearly 34.9% of the market and becoming again the first most preferred choice among EU car buyers. Meanwhile, the combined market share of petrol and diesel cars fell to 39.4% in January 2025, down from 48.7% one year ago. Electric cars In January 2025, new battery-electric car sales grew by 34% to 124,341 units, capturing a 15% market share. Three of the four largest markets in the region, together accounting for 64% of all battery-electric car registrations, recorded robust double-digit gains: Germany (+53.5%), Belgium (+37.2%), and the Netherlands (+28.2%), while France saw a slight decline of -0.5%. In January, new EU registrations of hybrid-electric cars increased by 18.4%, boosted by significant growth in the four biggest markets: France (+52.2%), Spain (+23.5%), Germany (+13.7%), and Italy (+10.6%). This led to 290,014 units registered in the first month of 2025, representing 34.9% of the EU market share. Registrations of plug-in hybrid electric cars declined in January 2025, dropping by 8.5% to 61,406 units. This decrease was primarily driven by significant reductions in key markets such as Belgium (-66.6%) and France (-54%). As a result, plug-in hybrid electric cars now represent 7.4% of total car sales in the EU. Petrol and diesel cars In January 2025, petrol car registrations saw a significant decline of 18.9%, with all major markets showing decreases. France experienced the steepest drop, with registrations plummeting by 28.2%, followed by Germany (-23.7%), Italy (-17%), and Spain (-11.1%). With 244,763 new cars registered last month, the market share for petrol dropped to 29.4%, down from 35.4% in the same month last year. Similarly, the diesel car market declined by 27%, resulting in a 10% market share for diesel vehicles last January. Overall, double-digit declines were observed in most EU markets. Lisa Laverick Editor - Finance Connect Sign up to our newsletter Featured Stories NewsZenith supports NG Bailey’s electric van transition with new trial fleet NewsArval UK welcomes new BIK rates as boost for salary sacrifice schemes NewsFinance Connect launches Fleet Focus Podcast with BVRLA’s Toby Poston Auto Finance