The European Union’s car market in the first half of 2025 (H1 2025) reveals a shifting landscape, with new car registrations dipping by 1.9% compared to the same period in 2024.
June 2025 saw a sharper year-on-year (YOY) decline of 7.3%, reflecting the challenging global economic climate for automakers. Despite this, electric and hybrid vehicles are gaining traction, reshaping consumer preferences and market dynamics.
Electric and Hybrid Vehicles Gain Ground
Battery-electric vehicles (BEVs) captured a 15.6% market share in H1 2025, up from 12.5% in H1 2024, with 869,271 units registered. Growth was driven by strong performances in key markets:
- Germany: +35.1%
- Belgium: +19.5%
- Netherlands: +6.1%
However, France saw a 6.4% decline, highlighting uneven adoption across the region. Despite the increase, BEVs remain below the targets needed for the EU’s ambitious energy transition goals.
Hybrid-electric vehicles (HEVs) solidified their position as the top choice for EU buyers, commanding a 34.8% market share with 1,942,762 units registered. Growth was robust in major markets:
- France: +34.1%
- Spain: +32.8%
- Italy: +10%
- Germany: +9.9%
Plug-in hybrid electric vehicles (PHEVs) also saw significant growth, with 469,410 units registered, representing an 8.4% market share (up from 6.9% in June 2024 YTD). Key markets driving this surge include:
- Spain: +82.5%
- Germany: +55.1%
- Italy: +56.3%
June 2025 YOY figures further underscore this trend, with PHEVs posting a 41.6% increase, compared to more modest gains for BEVs (7.8%) and HEVs (6.1%).
Petrol and Diesel Continue to Decline
Petrol and diesel vehicles are losing ground rapidly, with their combined market share falling to 37.8% in H1 2025, down from 48.2% in H1 2024. Petrol car registrations dropped by 21.2%, totaling 1,585,357 units and a 28.4% market share. Major markets saw significant declines:
- France: -33.7%
- Germany: -27.8%
- Italy: -17.2%
- Spain: -13.4%
Diesel vehicles fared even worse, with a 28.1% decline, resulting in a 9.4% market share. June 2025 YOY figures show petrol registrations down 25.4% and diesel down 34.1%, signaling a continued shift away from traditional internal combustion engines.
Looking Ahead
The EU car market in H1 2025 highlights a clear pivot toward electrified vehicles, with hybrids leading the charge and battery-electric models steadily gaining ground. However, the overall decline in registrations and the uneven adoption of BEVs across major markets suggest challenges remain in meeting the EU’s sustainability goals. As consumer preferences evolve and economic pressures persist, automakers must navigate a complex landscape to stay competitive in this rapidly changing market.
[source: ACEA]
