Europe’s car market is starting to regain momentum. After a slow start to the year, new car sales saw a modest rebound in February—hinting at a gradual recovery across the region.
According to ACEA, total registrations across the EU, the UK, and EFTA countries rose by 1.7%, reaching just under one million cars during the month. It’s not a massive jump, but it’s enough to signal that the market is stabilizing.
But the real story isn’t just about growth—it’s about transformation.
Electrification Is Taking Over
Electric cars in all forms are no longer a niche—they now dominate. Fully electric vehicles, plug-in hybrids, and traditional hybrids together accounted for nearly two-thirds of total sales.
Even as European governments ease some emissions rules—partly due to pressure from local automakers struggling with EV profitability—the shift toward electrification continues at full speed. Affordable new models and government incentives are helping push more buyers toward these options.
Still, not everyone is convinced the numbers tell the full story. Some environmental groups argue that labeling certain petrol cars as “mild hybrids” is artificially boosting electrified vehicle figures, without delivering major environmental benefits.
Tesla Is Back—but BYD Is Right There
Tesla is showing signs of recovery. Registrations jumped 11.8% year-on-year, ending a long stretch of declining sales.
But the comeback isn’t enough to pull ahead. Chinese giant BYD is gaining serious ground, more than doubling its sales year-on-year and slightly edging past Tesla in total registrations.
Both brands now sit at around 1.8% market share, highlighting just how intense the competition is becoming in Europe’s EV space.
European Giants Show Mixed Results
The picture is less consistent among Europe’s biggest automakers. Volkswagen and Stellantis managed modest growth, while Renault took a noticeable hit, with sales dropping by over 14%.
Inside the EU Numbers
Zooming in on the European Union alone, sales rose by 1.4%, reaching over 865,000 cars.
But again, electrification steals the spotlight. Fully electric cars jumped by more than 20%, plug-in hybrids surged by over 30%, and traditional hybrids also posted solid growth.
In total, these electrified vehicles made up 67% of all sales—up from 58.5% just a year ago. That’s not just growth—that’s a clear shift in what European buyers want from their cars.
