The European car market continues its transition toward electrified mobility, with battery-electric (BEV) and hybrid-electric vehicle (HEV) registrations gaining ground in the first four months of 2025. However, overall new car registrations in the EU declined marginally by 1.2% year-to-date (YTD), despite a slight rebound in April with a 1.3% year-on-year (YOY) increase, signalling cautious optimism amid persistent economic uncertainty.
Battery-Electric Vehicles Show Steady Growth, But Lag Expectations
BEVs accounted for 15.3% of all new EU car registrations YTD, up from 12% in the same period last year. A total of 558,262 electric cars were registered, marking a 26.4% YOY growth. Notably, three of the EU’s four largest markets posted strong gains: Germany surged by +42.8%, Belgium by +31.3%, and the Netherlands by +6.4%. However, France reported a decline of -4.4%, tempering overall progress.
Hybrid-Electric Vehicles Maintain Lead as Most Popular Powertrain
HEVs continued their upward trajectory, with registrations rising 20.8% YOY to 1,285,486 units, securing 35.3% of the total EU market. This growth was driven by significant gains in France (+44.9%), Spain (+35.8%), Italy (+15%), and Germany (+11%), reaffirming hybrids’ position as the top choice among European consumers.
Plug-In Hybrids Gain Ground
Plug-in hybrid electric vehicles (PHEVs) also expanded their presence, with registrations rising 7.8% YTD to 287,850 units, now representing 7.9% of the EU market, up from 7.2% in April 2024. Strong increases in Germany (+46.6%) and Spain (+42.8%) contributed to the growth. The segment also posted a robust 31.2% YOY gain in April alone.
Petrol and Diesel Vehicles Continue to Decline Sharply
The decline of internal combustion engine vehicles accelerated in early 2025. Petrol car registrations fell by 20.6%, totaling 1,041,176 units, and dropping market share from 35.6% to 28.6%. All major markets recorded double-digit declines, with France experiencing the steepest fall at -35.2%, followed by Germany (-26.6%), Italy (-14.4%), and Spain (-12.7%).
Diesel car sales fell even further, down 26.4%, leaving the segment with a diminished 9.6% share of the market. April’s YOY figures reinforced this trend, with a 20.6% drop in petrol and 24.4% in diesel registrations.
A Market in Transition
While the electrification of the EU car market continues to gain momentum, the BEV market share at 15.3% remains below policy and industry expectations. Hybrid and plug-in models are filling the gap as consumers gravitate toward more accessible and flexible electrification options amid infrastructure and cost concerns.
With growing pressure to meet 2030 emissions targets, the trends observed through April 2025 indicate a market in rapid transition, but one still grappling with challenges in affordability, infrastructure, and consumer readiness for full electrification.
