Over a million electric vehicles find new European homes within the initial 7 months of the year 2025

The European car market is at a turning point, with the transition towards electric vehicles (EVs) gaining momentum but still facing challenges from hybrid and combustion models.

In July 2025, battery electric vehicles (BEVs) accounted for 15.6% of all new passenger car sales, marking a significant increase from 12.1% in July 2024. This trend is a clear indication of the growing popularity of EVs across the continent.

Plug-in hybrid vehicles (PHEVs) also saw a notable rise, with a total of 561,190 registrations in 2025, equivalent to an 8.6% market share. This is a jump from the 6.9% market share held in 2024. The growth in PHEV registrations was particularly strong in Spain (+94.5%), Italy (+60.3%), and Germany (+59.2%).

However, the transition is not without its challenges. For instance, in early 2025, EV sales in France declined due to reduced subsidies and consumer uncertainty, with many buyers delaying purchases. However, demand is expected to accelerate towards the end of the year due to social leasing, revised ecological bonuses, and the introduction of new models like the Renault 5 E-Tech.

The combined market share of petrol and diesel cars fell from 47.9% in 2024 to 37.7% in 2025, illustrating a rapid erosion of their market role. Diesel cars, in particular, have seen a significant drop, with their market share dropping from 12.8% in July 2024 to 9.5% in 2025.

Hybrid vehicles have overtaken petrol as the top choice for EU consumers, with a 34.7% market share. This shift towards hybrid and electric vehicles is a clear sign of the changing landscape of the European car market.

The road to a fully electric Europe is complex, also due to regulatory pressure and varying manufacturer performance. ACEA, the European Automobile Manufacturers' Association, along with CLEPA, the European Association of Automotive Suppliers, has urged EU policymakers to reconsider the pace of emissions regulation. ACEA's President, Ola Källenius, who is also the CEO of Mercedes-Benz, argued that the current 2035 target for zero-emission cars may no longer be feasible.

Strategic policy, sustained consumer incentives, and accelerated infrastructure investment will be critical in ensuring the momentum towards a fully electric Europe translates into long-term transformation. ACEA has stated that a 15.6% BEV share is "still far from where it needs to be at this point in the transition."

Belgium posted a strong growth of 17.6% in BEV registrations, confirming that smaller markets are also playing a crucial role in the transition. Germany recorded a remarkable 38.4% increase in BEV registrations, consolidating its position as the largest and most dynamic market in Europe.

However, the transition is not uniform across all countries. For instance, France showed a contrasting picture: while July 2025 produced a 14.8% gain, year-to-date registrations were down by 4.3% compared to 2024. This divergence between national markets, such as Germany's surge versus France's hesitation, underscores the complexity of the transition to a fully electric Europe.

The transition to a fully electric Europe remains a complex journey, but the rapid growth in BEV and PHEV registrations suggests that the continent is moving in the right direction. The challenge now lies in ensuring that this momentum is sustained and that the transition is equitable across all European markets.