In December, 963,319 vehicles were sold in the European Union, marking a 5.8 percent increase compared to the previous year, according to figures released by the industry association ACEA on Tuesday. For the full year 2025, this results in a 1.8 percent rise to just over 10.8 million vehicles. Electric cars, in particular, saw strong growth, with nearly 1.9 million units sold—a jump of 29.9 percent from the previous year. Electric vehicles now account for a market share of 17.4 percent, almost four percentage points higher than last year.
However, according to ACEA, this is still not enough to ensure a successful transition. ACEA Secretary General Sigrid de Vries stated that Europe must improve the framework conditions, especially regarding the expansion of charging infrastructure, competitive electricity prices, as well as reliable purchase incentives and tax benefits across all member states. "This is particularly important when considering the CO2 targets for 2030, as automakers will need to nearly triple the share of electric cars to avoid penalty payments."
Europe remains divided in its shift to electric vehicles. While four out of five cars sold in Denmark are now electric, and about two-thirds in the Netherlands, electric vehicles in Eastern European countries such as the Czech Republic or Hungary only reach single-digit market shares. Southern Europe is also lagging behind.
The most popular drive type in the EU in 2025 was hybrid vehicles, which now hold a market share of 34.5 percent. Petrol or diesel cars without electric support together account for only 35.5 percent of the market. The success of hybrids, de Vries said, confirms the need for a technology-neutral approach to the transition.
Among manufacturers, the Volkswagen Group further expanded its leading position. The company—which includes the Volkswagen, Skoda, Audi, Cupra, and Porsche brands—now commands a 27.6 percent market share. Opel parent Stellantis, which also owns brands like Peugeot, Citroen, and Fiat, slipped to 15.3 percent. Renault holds third place with 11.5 percent. The strongest growth was achieved by Chinese manufacturer BYD, which sold three times as many cars as the previous year and now matches the market share of US electric carmaker Tesla.
(Report by Christina Amann. Edited by Olaf Brenner. For inquiries, please contact our newsroom at Berlin.Newsroom@thomsonreuters.com (for politics and economics) or Frankfurt.Newsroom@thomsonreuters.com (for companies and markets)
