European Market Monitor: Cars and Vans (February 2025)
By Michelle Monteforte and Sonsoles Diaz
Steady Growth in EV Market Share
In February 2025, the average share of battery electric vehicles (BEVs) in new car registrations across Europe held steady at 16%, similar to January 2025, according to the latest market data. The KG Mobility manufacturer pool led the pack with the highest BEV share at 41% in February. Following closely were the BMW (25%), Mercedes-Volvo-Polestar (23%), Kia (22%), Volkswagen (18%), and Hyundai (17%) pools. The Tesla-Stellantis-Toyota pool sat below the average, with a 13% BEV share. Notably, Suzuki and Honda also entered the pool during this period. The Renault-Nissan-Mitsubishi pool also lagged behind, with an 11% BEV share.
Hyundai witnessed a significant increase in its BEV share, jumping four percentage points from January to February 2025, surpassing the European average.
Shares for full hybrid electric vehicles (HEVs) remained consistent at an average of 13% for the European market. The Renault-Nissan-Mitsubishi pool increased its share by three percentage points month-over-month to 29%. Meanwhile, the Mercedes-Volvo-Polestar and BMW pools led new registration shares of mild hybrid electric vehicles (MHEVs) at 38% and 36%, respectively, and Tesla-Stellantis-Toyota also had a high share (34%, up from 29% in January 2025). The share of plug-in hybrid electric vehicles (PHEVs) remained constant at 7% across new registrations in Europe.
CO2 Emissions and Manufacturer Compliance
In February 2025, manufacturer pools averaged 103 g CO2/km. This figure put them 10 g CO2/km away from the average target of 93 g CO2/km set for 2025. After two months, KG Mobility and BMW were in compliance with their 2025 goals. Volkswagen was the furthest from its target, with emissions 17 g CO2/km above the goal.
Looking at individual car brands with at least a 1% market share, Volvo demonstrated the greatest over-compliance, at 30 g CO2/km below its projected target for 2025. Cupra followed closely, at 17 g CO2/km below its target. Audi, Mazda, Ford, SEAT, Nissan, and Mercedes-Benz are all currently behind their projected brand-level targets for 2025.
Country-Specific Trends
When examining major European markets, total passenger car registrations in Belgium and the Netherlands saw an 8% decline compared to February 2024. Conversely, Spain experienced a 12% rise in registrations. The combined market share for BEVs and PHEVs averaged 23% across Europe in February 2025, representing a one percentage point decrease from January.
Norway (97%), Denmark (67%), Sweden (56%), and the Netherlands (51%) had shares exceeding 50%. Belgium (41%), Ireland (29%), and Germany (26%) also reported combined BEV and PHEV market shares higher than the European average.
Among the largest markets, the highest growth in BEV registrations occurred in Czechia and Spain, where shares increased by 66% and 61%, respectively, in February 2025, compared to the same period in 2024. Germany, the largest European market, registered nearly 36,000 BEVs last month, representing a 31% increase over February 2024. During that same period, PHEV registrations increased the most in Belgium (+67%) and HEV shares in Spain (+56%). MHEVs are also gaining traction in France, where sales reached 23% in February 2025, an impressive 86% increase from February 2024.
Registrations by Owner
In 2024, private cars accounted for over 40% of new registrations in Europe. These were followed by company fleets (36%), and then car dealers/manufacturers and short-term rentals, with 14% and 9% respectively. Short-term rentals experienced more fluctuation, varying from nearly 13% of sales in May to only 5% in October 2024. In January 2025, new registrations mirrored the January 2024 split, with private cars accounting for 42%, a two percentage point increase from the previous year.
Spotlight: Italy
From May to December 2024, the Italian government offered purchase incentives for BEVs, ranging from €6,000 to €13,750 per vehicle. These incentives were particularly favored by lower-income buyers and those trading in older vehicles with Euro 4 emission standards or lower, and the allocated €240 million was quickly exhausted. The Ecobonus scheme also included funds for PHEVs and conventional cars emitting up to 135 g CO2/km. Even after the incentive program ended, electric vehicle shares in Italy remained above the previous year’s levels.
In February 2025, approximately 5.0% (6,925 vehicles) of all new passenger car registrations in Italy were BEVs, a 38% increase compared with February 2024. Total BEV sales in the first two months of 2025 amounted to 13,646 units, marking a 73% rise over the same period in 2024. For PHEVs, the market share in February was 4.5% (6,186 units sold), which was up 32% compared with February 2024 and up 26% over the first two months of 2024.
Definitions, Data Sources, Methodology, and Assumptions
- Manufacturer Pools: Automakers are allowed to form pools to jointly comply with CO2 targets. The 2025 pools are defined according to the European Commission’s “M1 pooling list,” version of 15 March 2025.
- Abbreviations: CO2 = carbon dioxide emissions; g/km = grams per kilometer; ZLEV = zero- and low-emission vehicle.
- Technical Scope: This publication focuses on new passenger car registrations. Battery electric vehicles (BEVs) are powered exclusively by an electric motor, with no additional source of propulsion. Plug-in hybrid electric vehicles (PHEVs) combine a conventional combustion engine with an electric propulsion system that can be recharged via an external power source. Hybrid electric vehicles here include full hybrid electric vehicles (HEVs) and mild hybrid electric vehicles (MHEVs).
- Geographic Scope: The European CO2 regulation for vehicle manufacturers applies to all countries of the European Economic Area (EEA). This includes the 27 Member States of the European Union plus Iceland, Liechtenstein, and Norway.
- Data Sources: Dataforce (new vehicle registrations), European Environment Agency (vehicle mass and eco-innovation credits).
- Test Procedures: CO2 values are provided according to the Worldwide harmonized Light vehicles Test Procedure (WLTP).
- Flexible Compliance Mechanisms: Manufacturers can utilize eco-innovation technologies and the ZLEV factor to meet CO2 targets.
- Mass-based Targets: For each manufacturer pool, a specific 2025 CO2 target value applies, depending on the average WLTP test mass of the new vehicles registered.
- Owner Types: This publication considers four types of owners: private cars, company fleets, short-term rentals, and car dealers and manufacturers.
This report is a collaboration between the ICCT, IMT-IDDRI, and ECCO think tank.
