New car registrations in the European Union slipped by 0.1% year-to-date (YTD) in August 2025, compared with the same period last year, despite two consecutive months of positive growth. The latest figures highlight shifting consumer preferences, with electrified vehicles gaining ground and internal combustion models continuing to lose market share.
Electric Vehicles on the Rise
Battery-electric cars (BEVs) accounted for 15.8% of new EU registrations in the first eight months of 2025, up from 12.6% in the same period of 2024. A total of 1,132,603 BEVs were registered during this time. Three of the EU’s largest markets—Germany (+39.2%), Belgium (+14.4%), and the Netherlands (+5.1%)—recorded growth, while France registered a slight decline of 2%, despite a strong 29.3% year-on-year rise in August alone.
Hybrid-electric cars (HEVs) remained the most popular choice among consumers, capturing a 34.7% market share with 2,485,069 units registered. Growth was driven by France (+30.5%), Spain (+29.3%), Germany (+10.1%), and Italy (+9.4%).
Plug-in hybrid electric vehicles (PHEVs) also saw momentum, reaching 631,783 registrations and an 8.8% market share, up from 6.9% last year. Spain (+99.9%), Italy (+62.6%), and Germany (+61.2%) led the surge, marking the sixth consecutive month of strong PHEV growth.
Year-on-year (YOY) data for August 2025 reflected a 30.2% increase in BEVs, 14.1% in HEVs, and a sharp 54.5% rise in PHEVs.
Sharp Decline in Petrol and Diesel
In contrast, traditional fuel-powered vehicles continued to lose ground. Petrol registrations dropped by 19.7% YTD, with France (-33.5%), Germany (-25.2%), Italy (-17.6%), and Spain (-13.1%) all posting steep declines. Petrol’s market share fell to 28.1%, down from 34.9% in August 2024.
Diesel registrations plunged by 25.7%, reducing its market share to 9.4%. YOY, August 2025 saw a 16.3% fall in petrol and a 17.5% fall in diesel registrations.
Market Outlook
While overall EU car sales remained flat, the data underscores the accelerating pace of electrification. However, analysts note that the 15.8% BEV share still lags behind the pace required to meet the EU’s climate and mobility transition goals.
