Volkswacht Bodensee - Hybrid cars top choice for consumers in Europe in 2025: data

Some 1.88 million new vehicles were registered in 2025 in the European Union, an increase of 1.8 percent from the previous year, according to the European Automobile Manufacturers' Association (ACEA).

New car sales "remain well below pre-pandemic levels", however, the trade association said in a statement.

Despite the only modest overall sales growth, consumers continued to shift towards hybrid and battery-electric vehicles.

Sales of hybrid-electric vehicles climbed by 13.5 percent last year to account for 34.5 percent of total sales in the EU last year, putting them ahead of petrol cars at 26.6 percent.

Meanwhile, sales of battery-electric vehicles jumped by 30 percent to account for 17.4 percent of overall sales, although the ACEA noted the gain was from a weak performance in 2024 and needs to rise further to stay on track with the EU's transition goals.

Sales of plug-in hybrids also rose, but sales of petrol and diesel vehicles dropped.

The combined market share of petrol and diesel cars fell to 35.5 percent, down from 45.2 percent in 2024.

Volkswagen Group saw sales rise by 5.5 percent last year to increase its lead as the top-selling carmaker in Europe.

France's Renault saw similar growth, but Stellantis -- which owns several European brands such as Peugeot and Fiat -- saw sales slide by 4.7 percent.

Chinese carmaker BYD tripled its sales in the EU last year, although from a small base.

China's SAIC Motor, which owns the MG brand, saw sales rise by a third.

Sales of Teslas fell by nearly 38 percent last year as the electric car brand has suffered reputational damage in Europe from its association with billionaire Elon Musk, who backed US President Donald Trump before a falling-out, and who has endorsed Germany's far-right AfD party.

C.Kreuzer--VB