European new car sales climbed 2.4% in November 2025, driven by electric vehicles. Discover the latest market trends and what’s next – read more now!
For the fifth month in a row, Europe’s automotive sector posted stronger numbers, with new‑car registrations rising 2.4% in November 2025. The surge is largely powered by electric vehicles (EVs), which continue to reshape the continent’s sales landscape.
Key Growth Figures
The European Automobile Manufacturers Association (ACEA) reported that total new‑car deliveries across the EU, the United Kingdom and the European Free Trade Association (EFTA) reached roughly 1.1 million units in November, up 2.4% year‑on‑year. In the EU alone, registrations climbed 2.1% to just under 900,000 vehicles.
Electric Vehicles Take Center Stage
Battery‑electric cars captured 21% of the EU market share, while plug‑in hybrids and conventional hybrids posted gains of 44.1% and 38.4% respectively. Combined, fully electric, hybrid and plug‑in models accounted for 65.6% of all new registrations – a noticeable jump from the 56% recorded in August 2024.
Regional Highlights
- Germany, Italy and Spain: These core markets saw the strongest EV uptake, fueling overall growth.
- United Kingdom: Electric cars represented 26% of new registrations.
- Norway: EVs dominated with 98% of the market, reinforcing the country’s status as a green‑mobility leader.
Brand Performance Snapshot
German giant Volkswagen and French‑Italian group Renault posted modest gains of 4.1% and 3% respectively. In contrast, Stellantis saw a 2.7% decline, ending a three‑month winning streak.
American EV pioneer Tesla experienced an 11.8% drop in registrations, a dip partially offset by record sales in Norway. Meanwhile, Chinese newcomer BYD surged with a 221.8% increase, capturing a 2% share of the market – almost on par with Tesla’s 2.1%.
Challenges on the Road Ahead
Despite the upbeat figures, Europe’s auto industry still wrestles with several headwinds:
- Intense competition from Chinese manufacturers expanding their European footprint.
- Higher tariffs on U.S.‑made vehicles, raising cost pressures for American brands.
- Stringent domestic regulations that demand rapid electrification while preserving profitability.
Policy Shift: EU Relaxes ICE Ban
Last week the European Commission announced a rollback of the planned 2035 ban on internal‑combustion‑engine (ICE) cars. The move, hailed by industry groups as a necessary concession, marks the most significant retreat from the bloc’s green agenda in recent years.
Outlook
ACEA cautions that, although the recovery trajectory is positive, overall production remains well below pre‑COVID‑19 levels. The association emphasises that sustained policy support and continued consumer‑led demand for electric mobility will be pivotal for Europe to close the gap.
As the market pivots toward greener horizons, manufacturers, policymakers and shoppers alike will watch closely to see whether the current growth can translate into a lasting transformation.