The European car market showed stability in April 2025, with new passenger car registrations totaling 1,078,521 units — a marginal increase of just 1,399 units over April 2024, according to the latest report by JATO Dynamics. Year-to-date figures from January to April 2025 reveal total registrations of 4,467,681 units, nearly unchanged from the same period last year.
However, beneath this surface-level stability, significant shifts are underway — particularly in the electric vehicle (EV) segment. Registrations of battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs) rose by 28% and 31% respectively, pushing EVs to a record 26% of total market share. This surge, led notably by Chinese automakers, marks a historic moment in Europe’s automotive evolution.
BYD Dethrones Tesla
In a major industry shake-up, China’s BYD registered more pure electric cars than Tesla in Europe for the first time. BYD’s meteoric rise — posting a 359% year-on-year increase in sales — contrasts sharply with Tesla’s 49% slump. This marks a symbolic shift in dominance, as Tesla has long held the top spot in Europe’s BEV segment.
“Although the difference between the two brands’ monthly sales totals may be small, the implications are enormous,” said Felipe Munoz, Global Analyst at JATO Dynamics. “It’s a watershed moment that reflects BYD’s aggressive expansion strategy and Tesla’s waning momentum in a highly competitive market.”
BYD’s expansion has allowed it to surpass major European brands in key markets, including outselling Fiat, Dacia, and Seat in the UK, and Fiat in Spain and France — even before production starts at its upcoming Hungary plant.
Chinese Brands Adapt to EU Tariffs
Despite new EU tariffs on Chinese-made BEVs, sales of these vehicles rose 59% in April year-on-year, reaching nearly 15,300 units. Chinese automakers are also rapidly pivoting to plug-in hybrids — currently exempt from tariffs — to maintain their growth. PHEV sales from Chinese brands soared by 546%, now accounting for almost 10% of Europe’s total PHEV market.
“China’s automakers are not just BEV leaders — they’re dominating the PHEV segment too,” Munoz explained. “This adaptability shows they’re serious about maintaining global momentum despite regulatory challenges.”
Market Highlights: Renault Clio Reclaims Top Spot
In the model rankings, the Renault Clio returned to the top for the first time since June 2020 with 19,000 registrations. The Volkswagen Tiguan also performed strongly, jumping 32% in sales to take fourth place. Other high performers included the Toyota Yaris Cross, Dacia Duster, Opel/Vauxhall Corsa, and Peugeot 3008.
In the BEV category, Škoda’s Elroq led the charts for the first time with 8,000 units sold. Volkswagen had three models in the top rankings, including the ID.7, which recorded a staggering 640% increase. Renault’s reimagined Renault 5 and Kia’s newly launched EV3 also entered the top 10.
Conversely, the Tesla Model Y and Volvo EX30 saw steep declines, with registrations falling by 53% and 57%, respectively.
Outlook: A Tipping Point for Europe’s EV Market
While BEVs and PHEVs are gaining traction, Munoz cautioned that EV adoption must accelerate significantly to influence the broader European auto market meaningfully. “The EV segment was a bright spot, but growth in this area must outpace declines in ICE vehicles to have real impact,” he noted.
As Chinese automakers continue to adapt and expand their influence in Europe, the traditional powerhouses — both European and American — face unprecedented competition. The road ahead for Europe’s automotive sector will be defined not just by stability, but by transformation.
