A sharp decline in overall sales in major markets including Germany and Italy dragged down the numbers of newly registered cars in the EU. However, EVs are distinctly increasing their market share in the bloc, with Chinese-made cars on the rise.
German, Italian and French demand for new cars has been lagging in the first two months of the year, hammering sales in the continent.
New car registrations fell by 3.4% in February and 3% in the first two months of the year compared to the same period last year, according to the European Automobile Manufacturers’ Association (ACEA).
In February, year-to-date sales fell in Italy by 6%, in Germany by 4.6% and in France by 3.3%. However, Spain saw an 8.4% increase.
In February, 15.4% of the new cars sold were battery-electric vehicles (BEVs), while for the first two months of the year, the total reached 15.2%. That signals a jump from last year’s 11.5% in the same period.
EVs are claiming a bigger slice of the cake
Electric cars saw robust gains compared to last year. Across the first two months of 2025, new battery-electric car sales grew by 28.4%, capturing more than 1/7th of the total EU market.
Three of the four largest EV markets in the EU, accounting for 64% of all battery-electric car registrations, recorded double-digit gains: Germany saw a whopping 41% increase, sales in Belgium were up by 38%, and in the Netherlands by 25%. But in France, a slight decline of 1.3% gave contrast.
Meanwhile, hybrid-electric vehicles claimed 35.6% of the EU market in February, remaining the favourite among the bloc’s customers. This category sold 18.7% more cars in the first two months of 2025 than in the previous year. France, Spain, Italy and Germany all saw a significant jump in sales.
At the same time, the combined market share of petrol and diesel cars has shrunk to 38% in February, down from 48.4% over the same period in 2024.
In the first two months of the year, petrol car registrations collapsed by 20.5%, with all major markets showing decreases. France experienced the steepest drop, with registrations plummeting by 27.5%, followed by Germany (-24.9%), Italy (-19%), and Spain (-13%), according to ACEA.
Tesla sales crumpling in Europe, Chinese automakers cashing in
Volkswagen, Renault and BMW could slightly boost their European sales in the first two months, but Stellantis and Volvo both saw a double-digit decline.
Meanwhile, once the world’s biggest name in electric vehicles, Tesla saw its sales drop significantly by 49% in the EU. Compared to the same period in 2024, Tesla sold 19,046 new cars in the first two months of the year.
The brand’s shareholders are increasingly concerned that the business fell victim to the CEO’s political aspirations, as the South Africa-born billionaire Elon Musk took up a senior role in US President Donald Trump’s administration.
In Europe, Tesla’s sales are certainly freefalling and have been beaten by Chinese auto giant SAIC Motor, which increased its sales significantly by 39.2% in the EU in the same period, selling 30,176 cars.
Meanwhile, both companies have a quickly growing rival: Chinese electric vehicle maker BYD. The company reported its 2024 revenue at over $107bn (€99bn), topping Tesla’s nearly $97.7bn (€90.4) for the same period.
BYD said its battery electric and hybrid vehicle sales jumped 40% worldwide. The company has just launched its Qin L EV sedan, a mid-sized model similar to Tesla’s Model 3 but at just over half the price.
BYD is also rolling out a super-fast EV charging system that is nearly as quick as a fill-up at the pumps.
The carmaker is yet to scoop a respectable share of European car sales, as it faces an additional 17% on top of the existing 10% flat rate the EU imposed on Chinese carmakers. But BYD has strong ambitions in Europe: the carmaker has two plants underway, one in Hungary and another in Turkey, while reportedly eyeing a third location on the continent.
Meanwhile, Chinese carmakers are facing uncertainty over international trade, stemming from the US administration’s announcements about new tariffs, including those on car imports.
