In the first half of 2025 (H1 2025), new EU car registrations dropped by 1.9% compared to the same period last year, according to the data of ACEA. With a strong 7.3% year-on-year (YOY) decline for June, this is indicative of the challenging global economic environment for automakers.
The battery-electric car market share for H1 2025 stood at 15.6%, still far from where it was expected to be at this point in the transition, but it continues its growth. Hybrid-electric models continue to gain popularity, solidifying their position as the most sought-after power type among buyers.
By power source
In the first half of the year, battery-electric cars (BEVs) accounted for 15.6% of the EU market share, an increase from the low baseline of 12.5% in H1 2024. Hybrid-electric car registrations continue to surge, capturing 34.8% of the market share and remaining the preferred choice among EU consumers.
Meanwhile, the combined market share of gasoline and diesel cars fell to 37.8%, down from 48.2% over the same period in 2024.
Electric
In the first half of 2025, new battery-electric car sales reached 869,271 units, capturing 15.6% of the EU market share. Three of the four largest markets in the EU, accounting for over 60% of battery-electric car registrations, saw gains: Germany (+35.1%), Belgium (+19.5%), and the Netherlands (+6.1%). This contrasted with France, which saw a decline of 6.4%. The YOY variation in June 2025 showed a rise of 7.8% for battery-electric vehicles.
Hybrid
H1 2025’s figures also showed new EU registrations of hybrid-electric cars (HEVs) rose to 1,942,762 units, driven by growth in the four biggest markets: France (+34.1%), Spain (+32.8%), Italy (+10%), and Germany (+9.9%). Hybrid-electric models now account for 34.8% of the total EU market share.
Registrations of plug-in-hybrid electric cars in H1 2025 reached 469,410 units. This was driven by increases in volume for key markets, such as Germany (+55.1%), Spain (+82.5%), and Italy (+56.3%). As a result, plug-in-hybrid electric cars now represent 8.4% of total car registrations in the EU, up from 6.9% in June 2024 YTD.
The YOY variation in June 2025 showed a rise of 6.1% for hybrid-electric cars, while plug-in-hybrid electric recorded its fourth consecutive month of strong growth with a 41.6% increase.
Gasoline and diesel
By the end of June 2025, gasoline car registrations had declined by 21.2%, with all major markets experiencing decreases. France experienced the steepest drop, with registrations plummeting by 33.7%, followed by Germany (-27.8%), Italy (-17.2%), and Spain (-13.4%). With 1,585,357 new cars registered so far, the market share for gasoline dropped to 28.4%, down from 35.4%.
Similarly, the diesel car market declined by 28.1%, resulting in a 9.4% share for diesel vehicles in June 2025 YTD. Additionally, the June 2025 YOY variation showed a decline of 25.4% for gasoline and 34.1% for diesel, confirming the tendencies of the previous months.
When examining the EFTA countries (Iceland, Norway, and Switzerland) and the United Kingdom, we observe essentially the same trends, although in a slightly growing market. The market in the EFTA countries increased by 4.5%, while the UK market rose by 3.5%.
Examining the power source, BEVs increased by 30.5% in the EFTA countries and by 34.6% in the UK. Plug-in hybrids (PHEVs) recorded 9.9% and 31.3%, respectively; HEVs went up 0.9% and 12.7% respectively.
Significant losses are registered for gasoline and diesel: in the EFTA countries, gasoline car sales regressed by 26.4% and diesel car sales by 33.8%. In the UK, the percentages were -23.8% and -9.6%, respectively.
By brand
In the European Union, the Volkswagen Group remains the largest by far in H1 2025, maintaining its market share at 27.3% (up from 26.1% in H1 2024). The biggest winner within the group is Cupra (+35.2% in sales), while the losers are Porsche (-19.2%) and Seat (-21.5%).
Stellantis takes the opposite direction, decreasing its market share from 18.0% to 16.3%. Not many winners here, except for Alfa Romeo (+33.3% in sales). Serious losers are Fiat (-23.1%), DS (-22.5%), and Lancia/Chrysler (-73.9%).
Renault Group consolidates its third place with an 11.6% market share (up from 10.9%), achieving a 7.7% increase in sales for Renault and a 1.2% or more growth for Dacia. Alpine sees the fruit of its small electric car, the A290, emerging on the market, with a 91.3% increase in sales.
The battle for fourth place between the Toyota Group and the Hyundai Group has been won by the Japanese, but both groups lose market share: Toyota’s share decreases from 8.8% to 8.4%, and Hyundai’s from 7.8% to 7.4%.
BMW Group stays comfortably in sixth place, with a market share increase from 6.3% to 6.8% and a sales increase of 5.3%. Mini is the big winner here, with a 19.2% sales increase. Mercedes-Benz loses 0.1% market share and sells slightly fewer cars (-1.9%°). The reason is Smart, which scores 67.3% fewer sales.
Numbers nine and ten remain at the same place, with Ford maintaining its 2.9% market share, and Volvo losing 0.4% of its market share (from 2.7% to 2.3%). Nissan’s 11th place (2.0% market share) is threatened by the Chinese number one brand in Europe, SAIC Motor, which increases its share from 1.4% to 1.9% and augments its sales by 33.3%, or one-third.
Tesla is still heading in the wrong direction, and despite better sales figures in June, it has fallen behind Nissan, SAIC Motor, and even Suzuki, with its market share reduced to 1.3% (down from 2.2% for the same period last year).
Serious growth for the Chinese
Chinese car brands saw strong sales growth in Europe, bringing their market share for the year-to-date period to a record high. In the first half of 2025, sales of Chinese car brands in Europe increased by 91% year-over-year to 347,135 units, according to a report released today by market research firm Jato Dynamics.
This brought the market share of Chinese brands in Europe to a new high of 5.1%, nearly doubling the 2.7% recorded in the same period of 2024. Apart from ‘long-term runner’ SAIC Motor (see above), five car brands, BYD, Jaecoo, Omoda, Leapmotor, and Xpeng, drove this rapid growth, according to the report. Jaecoo and Omoda are sub-brands of Chery.
BYD, which has been particularly aggressive in its pricing strategy, registered 70,500 units in the first half of 2025, a 311 percent increase year-over-year, and is now already at the same level as Tesla. In June alone, BYD registered 15,565 vehicles, ranking among the top 25 best-selling brands and outpacing Suzuki, Mini, and Jeep.
The BYD Seal U tied with the Volkswagen Tiguan as the best-selling plug-in hybrid electric vehicle (PHEV) in Europe in June and ranked third in the first half of the year.
Jaecoo and Omoda also achieved significant growth, although their electric models did not drive this growth. In June, their plug-in hybrid SUVs accounted for 29% of monthly registrations in Europe, while traditional internal combustion engine models made up 63% of total registrations.
Leapmotor registered over 8,300 new vehicles in Europe in June alone, driven by strong demand for its tiny T03 city sedan and C10 SUV.
Xpeng has become the most successful Chinese premium car brand in Europe so far in 2025, with 8,338 registrations in the first half of the year, according to Jato. Its growth was mainly driven by strong demand for the G6 electric SUV, which accounted for 5,615 of the registrations, according to the report.
