EU new car sales edge up 0.9% in 2025

New passenger car registrations in the European Union rose by 0.9% year-to-date (YTD) through September 2025, according to the latest figures from the European Automobile Manufacturers’ Association (ACEA). The modest growth marks the third consecutive month of expansion, supported by a wave of new model launches and solid September results, which saw a 10% monthly increase.

The EU car market continues its gradual recovery from a volatile 2024, though the pace of electrification remains mixed. Battery-electric vehicles (BEVs) secured a 16.1% market share YTD, holding steady compared to recent months but still below the levels needed to meet Europe’s transition targets.

Hybrid-electric cars lead the market

Hybrid-electric vehicles (HEVs) remain the dominant choice for European buyers, accounting for 34.7% of total EU registrations through September. ACEA data shows that demand for hybrids surged in major markets such as France (+28.8%), Spain (+28.1%), Germany (+10.6%), and Italy (+9.2%), bringing total HEV registrations to 2,793,079 units.

Plug-in hybrid electric vehicles (PHEVs) also posted impressive gains, with registrations climbing 65.4% year-on-year in September, extending their streak to seven consecutive months of growth. So far in 2025, 722,914 PHEVs have been registered, representing 9% of the EU market, up from 6.9% a year earlier.

Battery-electric vehicles continue expansion

From January to September 2025, 1,300,188 new BEVs were registered across the EU. Three of the bloc’s four largest markets – Germany (+38.3%), Belgium (+12.4%), and the Netherlands (+3.9%) – posted strong gains, while France saw a slight 0.2% decline YTD, despite a robust 11.2% increase in September alone.

Overall, BEV sales rose 20% year-on-year in September, underscoring the growing appetite for fully electric models, even as market share growth begins to stabilize.

Petrol and diesel cars continue to decline

The shift away from internal combustion engines accelerated in 2025. Petrol car registrations fell 18.7% YTD to 2,234,058 units, reducing their market share to 27.7% from 34.4% a year earlier. The decline was widespread, with France (-32.8%), Germany (-23.5%), Italy (-16.6%), and Spain (-13.2%) all reporting double-digit losses.

Diesel vehicles continued their long-term retreat, dropping 24.7% to just a 9.3% market share, compared to 12.4% a year earlier. The September year-on-year comparison showed further contractions of 7.8% for petrol and 14.3% for diesel.

Outlook: slow but steady transition

ACEA noted that while the European car market is showing signs of stability, the electrification transition remains uneven across member states. The steady rise in hybrid and plug-in hybrid vehicles suggests consumers remain cautious amid infrastructure and cost challenges, even as fully electric models gain traction.

With overall new car registrations inching upward and electrified vehicles accounting for nearly 60% of the EU market, the data underlines a turning point for Europe’s automotive landscape – one marked by resilience, innovation, and an accelerating shift away from fossil fuels.