EU Car Registrations Down 1.9% in Q1 2025 as Electric Vehicles Gain Traction
New car registrations in the European Union declined by 1.9% in the first quarter of 2025 compared to the same period in 2024. The challenging global economic context continues to impact automakers, with March 2025 figures showing a marginal 0.2% year-on-year decline.
Despite the overall decline in new car registrations, battery-electric vehicles (BEVs) saw significant growth. BEV sales rose by 23.9% to 412,997 units, capturing 15.2% of the total EU market share. This growth was driven by robust gains in three of the four largest EU markets: Germany (+38.9%), Belgium (+29.9%), and the Netherlands (+7.9%). France, however, experienced a decline of 6.6%.
Shift in Power Sources
The market share of different power sources continued to evolve in Q1 2025. Hybrid-electric vehicles remained the most popular choice among EU consumers, accounting for 35.5% of the market. This represents a significant increase from the previous year, driven by growth in major markets such as France (+47.5%), Spain (+36.6%), Italy (+15.3%), and Germany (+10.5%).
In contrast, petrol and diesel cars continued their decline. Petrol car registrations dropped by 20.6%, with significant decreases observed in France (-34.1%), Germany (-26.6%), Italy (-15.8%), and Spain (-9.5%). The diesel car market also declined by 27.1%, resulting in a 9.5% market share in Q1 2025.
Key Market Trends
- Battery-electric vehicles: 15.2% market share (up from 12% in Q1 2024)
- Hybrid-electric vehicles: 35.5% market share (up from previous year)
- Petrol and diesel cars: 38.3% combined market share (down from 48.3% in Q1 2024)
- Plug-in hybrid electric cars: 7.6% market share (up from 7.4% in Q1 2024)
The trends observed in Q1 2025 indicate a continued shift towards electrified vehicles in the EU market, with battery-electric and hybrid-electric vehicles gaining popularity at the expense of traditional petrol and diesel cars.
