Hybrid-electric vehicles have surpassed petrol-powered cars as the top power option among consumers in Europe, according to data released by the European Automobile Manufacturers’ Association (ACEA). In 2025, the European Union saw a 1.8% increase in new vehicle registrations, with 1.88 million units sold. Although this growth is modest, it marks a significant shift towards hybrid and battery-electric vehicles.
The ACEA reported that hybrid-electric vehicle sales climbed 13.5% to account for 34.5% of total sales in the EU, overtaking petrol cars, which accounted for 26.6%. Battery-electric vehicle sales also jumped by 30% to make up 17.4% of overall sales. However, the ACEA noted that this gain was from a weak performance in 2024 and needs to rise further to meet the EU’s transition goals.
The combined market share of petrol and diesel cars fell to 35.5%, down from 45.2% in 2024. Volkswagen Group saw a 5.5% increase in sales, solidifying its position as the top-selling carmaker in Europe. French automaker Renault also experienced similar growth, while Stellantis, which owns several European brands, saw sales decline by 4.7%.
Chinese carmakers BYD and SAIC Motor, which owns the MG brand, reported significant sales growth in the EU, with BYD tripling its sales and SAIC Motor seeing a 33% increase. In contrast, Tesla’s sales fell by nearly 38% due to reputational damage in Europe.
The shift towards hybrid and electric vehicles reflects the EU’s efforts to reduce carbon emissions and meet its climate goals. As the automotive industry continues to evolve, it is likely that we will see further growth in the demand for eco-friendly vehicles. The EU’s transition to a more sustainable transportation sector is underway, with consumers increasingly opting for hybrid and electric vehicles over traditional petrol-powered cars.
