EU Automotive Shift: Hybrids and EVs Overtake Petrol Models
The European car market hit a landmark in 2025, with hybrid-electric vehicles topping sales for the first time, eclipsing petrol options amid shifting buyer trends. According to the European Automobile Manufacturers' Association (ACEA), hybrids grabbed 34.5% of the market, while petrol slipped to 26.6%; full battery electrics even outpaced petrol in December, pushing all electrified types beyond 61% share.
Petrol and diesel registrations plunged sharply—petrol down 18.7%, diesel 24.2%—shrinking their joint foothold to 35.5% from 45.2% the prior year. France saw the deepest petrol drop at 32%, trailed by Germany (21.6%), Italy (18.2%), and Spain (16%), leaving diesel at a mere 8.9% slice. Overall sales climbed 1.8% to 10.8 million units, the highest in five years yet shy of pre-pandemic peaks.
Competition heated up as Tesla faltered, with European volumes tumbling 26.9% to 238,656 and share dipping to 1.8%, versus BYD's explosive 268.7% surge to 187,657 units and 1.4% stake. Volkswagen and Stellantis notched December gains of 10.2% and 4.5%, while Renault dipped 2.2%. Analyst Matthias Schmidt noted some petrol decline ties to "mild hybrid" reclassifications, predicting full EV dominance in about five years.
This shift coincides with EU debates on easing the 2035 combustion ban, pressured by Chinese rivals, U.S. tariffs, and EV profitability woes. Optimism persists, however: E-Mobility Europe's Chris Heron highlighted new affordable EVs and incentives, forecasting steady 2026 growth.
