Hybrid vehicle sales surged 13.5% in the EU in 2025, surpassing gasoline models. Discover the trends shaping Europe’s auto market. Read more now!
The European auto market is accelerating its shift toward electrified powertrains. According to the European Automobile Manufacturers Association (ACEA), 1.88 million new vehicles were registered across the EU in 2025 – a modest 1.8% rise over 2024 but still below pre‑pandemic levels.
Hybrid Registrations Surge 13.5%
What really stands out is the performance of hybrid models. Sales jumped 13.5% year‑over‑year, capturing 34.5% of all new‑car registrations and overtaking pure‑gasoline vehicles, which fell to just 26.6% of the market.
Pure EVs Keep Growing
Fully electric vehicles (EVs) aren’t far behind. Their sales rose 30%, accounting for 17.4% of all new registrations. ACEA notes that while the results look promising, they are built on a relatively weak 2024, and EV adoption must accelerate further to meet the EU’s climate targets.
ICE Share Declines
When diesel‑powered cars are included, internal‑combustion engine (ICE) vehicles still hold a slight edge at 35.5% of the market. However, this share dropped sharply from 45.2% in 2024 as both gasoline and diesel sales receded.
Brand Winners and Losers
German giant Volkswagen retained its top spot, posting a 5.5% sales increase and cementing its position as Europe’s best‑selling automaker. French group Renault (including the Dacia brand) enjoyed similar growth, while Stellantis – the parent of Peugeot, Citroën and Fiat – saw a 4.7% decline.
Chinese Makers Gain Traction
The biggest surprise of the year was the rise of Chinese manufacturers. BYD tripled its EU sales volume, jumping from a modest base in 2024 to become a market champion. Shanghai‑based SAIC, owner of the MG brand, lifted its sales by about one‑third. In contrast, Tesla experienced a steep 38% drop, partly attributed to reputational damage after CEO Elon Musk’s outspoken support for far‑right parties such as Germany’s AfD.
Overall, the data underscores a clear momentum shift: hybrids are now the dominant new‑car segment in Europe, while pure EVs continue to grow and traditional ICEs lose ground. The coming years will reveal whether this trajectory can sustain the EU’s ambitious decarbonisation goals.