Fully electric car sales overtook petrol-powered vehicles for the first time in the European Union in December 2025, marking a symbolic turning point for the region’s automotive market even as policymakers moved to ease emissions regulations. Data released by the European Automobile Manufacturers’ Association (ACEA) highlights both the accelerating adoption of electrified vehicles and the growing competitive pressures reshaping Europe’s car industry.
EVs Reach Historic Milestone in December
According to ACEA data, registrations of battery electric vehicles surged in December, helping electric cars move ahead of petrol models in monthly sales across the EU. When combined with plug-in hybrid and hybrid electric vehicles, electrified cars accounted for sixty-seven percent of all new registrations in the bloc during the month, up sharply from 57.8 percent in December 2024.
Battery electric vehicle registrations alone jumped 51 percent year on year in December. Plug-in hybrids rose 36.7 percent, while hybrid electric vehicles grew 5.8 percent. The figures reflect how consumer preferences continue to shift toward lower-emission vehicles, despite uncertainty around future regulatory targets.
EU electric car registrations surged in 2025, with battery-electric vehicles reaching 1,880,370 units and capturing 17.4 percent of the market. Growth was led by the four largest markets – Germany, the Netherlands, Belgium, and France – which together accounted for 62 percent of registrations.
Hybrid-electric cars recorded even stronger volumes, rising to 3,733,325 units and making up 34.5 percent of total EU car registrations. Spain, France, Germany, and Italy were the main growth drivers.
Plug-in-hybrid electric cars also saw rapid expansion, with registrations climbing to 1,015,887 units, increasing their market share to 9.4 percent from 7.2 percent a year earlier, supported by sharp gains in Spain, Italy, and Germany.
On a year-over-year basis in December 2025, battery-electric car registrations jumped 51 percent, plug-in-hybrids rose 36.7 percent, and hybrid-electric cars grew 5.8 percent.
Overall Car Market Continues to Recover
Europe’s car market extended its recovery for a sixth consecutive month, with total registrations across the EU, Britain and the European Free Trade Association rising 7.6 percent in December to around 1.2 million vehicles. For the full year 2025, registrations increased 2.4 percent to 13.3 million cars, the highest annual volume in five years, though still below pre-pandemic levels.
Within the EU alone, car sales climbed 5.8 percent in December to nearly one million vehicles and rose 1.8 percent over the year to 10.8 million units. The steady growth reflects easing supply chain constraints and gradual improvements in consumer demand, even as economic and geopolitical pressures persist.
Tesla Loses Market Share as Competition Intensifies
While electric vehicle sales are rising overall, the competitive landscape is shifting rapidly. U.S. electric carmaker Tesla continued to lose market share in Europe, with registrations falling 20.2 percent in December. In contrast, China’s BYD posted a dramatic 229.7 percent surge in registrations, highlighting the growing influence of Chinese manufacturers in the European market.
Europe’s largest automakers also strengthened their positions. Volkswagen Group, the region’s best-selling carmaker, saw registrations rise 10.2 percent in December, while Stellantis recorded growth of 4.5 percent. Renault, however, experienced a 2.2 percent decline during the month, reflecting uneven performance among established European brands.
Policy Uncertainty Clouds Long-Term Outlook
The milestone for electric cars comes at a time of policy debate in Brussels. In December, the European Union unveiled plans to abandon an effective 2035 ban on new combustion engine cars, responding to pressure from struggling automakers concerned about costs, profitability and competition from abroad.
Europe’s car industry is already grappling with multiple challenges, including aggressive competition from Chinese manufacturers, potential U.S. import tariffs and the difficulty of meeting domestic emissions targets while maintaining margins. Electric transport advocacy groups argue that relaxing regulations risks slowing the transition needed to reduce CO2 emissions and meet climate goals.
Analysts Still Expect EV Growth
Despite the proposed easing of emissions rules, analysts expect electric vehicles to continue gaining popularity across Europe. Falling battery costs, expanding charging infrastructure and a broader range of models are expected to support further adoption. Consumer interest in hybrids and plug-in hybrids also remains strong, suggesting that electrification in various forms will dominate Europe’s car market in the coming years.
The December data signals a structural shift rather than a one-off event. Even as policymakers reconsider timelines and targets, the momentum behind electric and electrified vehicles appears strong, reshaping Europe’s automotive industry and redefining competition in one of the world’s most important car markets.
BABURAJAN KIZHAKEDATH
