Electric vehicle (EV) sales surged by nearly 25%, providing a significant boost to Europe’s car market in the first quarter (Q1) of 2025, as the European automotive industry continues to navigate challenges from global trade tensions.
“In Q1 2025, new EU car registrations declined by 1.9% compared to Q1 2024, with March 2025 figures showing a slight 0.2% year-on-year decline as the global economic context remains particularly challenging and unpredictable for auto makers,” said the European Automobile Manufacturers’ Association (ACEA).
New EV sales in Europe soared by 23.9% in the first three months of 2025, totaling 412,997 units. The market share of battery electric vehicles also saw an increase, rising to 15.2% from 15% in January. Three of the four largest EU markets, which together account for 63% of all EV sales, recorded strong growth: Germany (+38.9%), Belgium (+29.9%), and the Netherlands (+7.9%). In contrast, France saw a decline of 6.6%. Sales of hybrid-electric vehicles also experienced a sharp rise, increasing by 20.7%, driven by demand in France, where sales surged by 47.5%. Spain, Italy, and Germany also reported double-digit growth in this segment. A total of 964,108 hybrid-electric vehicles were registered, capturing 35.5% of the EU market share in Q1. Additionally, plug-in hybrid electric car registrations grew by 1.1%, largely due to increased interest in Germany and Spain.
Petrol car registrations saw a significant decline, dropping by 20.6% in the first quarter compared to the same period last year. France experienced the sharpest fall, with a 34.1% drop, followed by Germany (-26.6%), Italy (-15.8%), and Spain (-9.5%).
Similarly, the diesel car market shrank by 27.1% in Q1 2025, with double-digit declines across most EU countries. Volkswagen AG, the German automotive giant, had a stronger start to the year compared to 2024, with newly registered VW models in the EU up by 4.8% in the first quarter. The most popular model was the Cupra.
Stellantis saw a 14% decline in newly registered models, while Mercedes-Benz dropped by 6.2%. BMW experienced a slight increase of 0.4%, and the French Renault Group recorded a 9.5% rise in registrations.
Chinese state-owned manufacturer SAIC Motor saw a dramatic 52.3% rise in newly registered models in the EU. In contrast, Tesla experienced a 45% drop in registrations for the same period.
