Electric vehicles reached a significant milestone in Europe in December 2025, overtaking petrol-only cars in monthly sales for the first time, according to data from the European Automobile Manufacturers’ Association (ACEA).
In the 27 European Union countries, battery-electric vehicles accounted for a slightly larger share of new registrations than gasoline cars during the month. While the margin was narrow, the result reflects a broader and ongoing shift in Europe’s automotive market toward electrified powertrains.
When figures are expanded to include the United Kingdom and the European Free Trade Association (Norway, Switzerland, Iceland, and Liechtenstein), electric vehicles’ lead over petrol cars becomes more pronounced, with EVs taking more than a quarter of all new registrations in December.
A Monthly Milestone Within a Gradual Transition
Despite December’s result, petrol vehicles remained ahead over the full year. Across 2025, gasoline-powered cars still accounted for a larger share of total registrations than fully electric models, though their share declined significantly compared with 2024.
Battery-electric vehicles continued to gain ground throughout the year, while diesel sales fell further, extending a long-term decline that began after the mid-2010s. Diesel’s share of the European market has now dropped to single digits, compared with more than 50 percent at its peak roughly a decade ago.
Hybrids remained the most popular powertrain choice in Europe in 2025. Conventional hybrids and plug-in hybrids together accounted for more than one-third of new registrations, reflecting strong consumer demand for electrified vehicles that still offer combustion-engine flexibility. Plug-in hybrids, in particular, surpassed diesel for the first time on an annual basis.
Overall Car Sales Continue to Recover
The shift in powertrains occurred alongside a broader recovery in Europe’s car market. Vehicle registrations increased steadily through 2025, with December marking the sixth consecutive month of year-on-year growth. Total registrations reached their highest annual level in five years, although they remained below pre-pandemic volumes.
Performance varied by country. Germany and Italy recorded growth in new car sales, while France and Spain saw declines. For the full year, total new car registrations in Europe rose modestly, highlighting a recovery that remains uneven across the region.
Manufacturers Face Changing Market Dynamics
The evolving market has also reshaped competition among automakers. Tesla, which previously dominated Europe’s EV sales, experienced a decline in registrations in December and lost market share to competitors, including Volkswagen and China’s BYD.
Volkswagen strengthened its position as Europe’s largest EV seller, while BYD posted strong growth from a smaller base. Despite lower sales year over year, the Tesla Model Y remained Europe’s best-selling electric vehicle in 2025, followed by newer models from Skoda, Renault, and Volkswagen.
The data suggests that the European EV market is becoming more competitive, with a wider range of brands and price points available to consumers.
Policy Debate Continues, but Electrification Advances
These developments come amid ongoing policy discussions in the European Union, including proposals to relax emissions regulations and reconsider the planned 2035 ban on new combustion-engine vehicles. The debate reflects pressure on automakers to balance regulatory compliance, profitability, and competition from lower-cost imports, particularly from China.
Despite potential regulatory adjustments, analysts expect electrified vehicles to continue gaining market share. Battery-electric, plug-in hybrid, and hybrid vehicles together accounted for roughly two-thirds of new registrations in December, underscoring the scale of the shift already underway.
Further growth is expected as manufacturers introduce more affordable electric models over the next two years, particularly in the small- and compact-car segments.
A Market in Transition
December’s figures mark an important moment for Europe’s car market, but they do not represent a sudden or complete transformation. Instead, they reflect a steady transition that has been building for several years.
Petrol and diesel vehicles continue to lose share, hybrids remain the dominant choice, and fully electric cars are becoming an increasingly common option for European buyers. While challenges remain — including pricing, infrastructure, and policy uncertainty — the direction of travel is now clearly established.
Electrification in Europe is no longer a niche trend, but a central feature of the region’s automotive market.
