EU New Car Registrations Plunge Amid Rise in Electric Vehicle Sales

New car registrations across the European Union have seen a marked decline in the first five months of 2025, with France experiencing a decrease of 7.1% in overall car sales. This trend is troubling as the EU grapples with significant shifts in consumer preference and market dynamics.

Despite the overall downturn, battery electric vehicles (BEVs) experienced a notable rise, with registrations up by 25%. While these vehicles now account for 15.4% of new car sales in the EU, this is still below industry expectations. Hybrid-electric vehicles have gained traction as well, contributing to 35.1% of the market, while traditional petrol and diesel vehicles have fallen to 38.1%, down from 48.5% last year, reflecting changing consumer demands towards greener alternatives.

Regionally, countries like Germany, Belgium, and the Netherlands reported significant increases in EV sales, with rises of 43.2%, 26.7%, and 6.7%, respectively. Spain emerged as the only major EU nation to record an increase in car sales overall, marking a 13.6% rise, largely driven by a surge in EV sales — nearly 79% growth.

Industry leaders are mixed in their performance; Volkswagen remains the market leader, increasing its registrations by 4.8%, while Stellantis, which includes Peugeot and Fiat, saw a 10% sales decline. Tesla, a significant player in the EV market, reported a stark 45.2% drop in new registrations, whereas Chinese automaker SAIC Motor surged by 49.1%, surpassing Tesla in sales volumes.

As the EU car market continues to evolve, the emphasis on hybrid and electric options suggests a pivotal moment in automotive industry trends and consumer preferences.