In the first quarter of 2025, the European Union's automotive market witnessed a significant shift in consumer preferences, as electric and hybrid vehicles continued to grow in popularity. Battery-electric cars (BEVs) captured 15.2% of the market share, up from 12% in Q1 2024. Despite this growth, BEVs remain far from meeting initial expectations. Meanwhile, hybrid-electric vehicles (HEVs) surged ahead, securing 35.5% of the market share and maintaining their position as the top choice for buyers. In contrast, petrol and diesel cars experienced substantial declines, with their combined market share falling to 38.3%, down from 48.3% in the same period last year. The overall new car registrations in the EU decreased by 1.9% compared to Q1 2024, reflecting ongoing economic uncertainties.

During the first three months of 2025, sales of battery-electric vehicles increased by 23.9%, reaching 412,997 units sold across the EU. This growth was driven primarily by robust gains in key markets such as Germany, Belgium, and the Netherlands, which together account for 63% of all BEV registrations. However, France saw a decline of 6.6%, marking an exception to the general trend. Notably, the rise in BEV sales occurred against the backdrop of challenging global economic conditions that have affected automakers' performance.

Hybrid-electric cars also demonstrated impressive growth, with registration figures rising by 20.7%. This increase was fueled by strong performances in the four largest EU markets: France, Spain, Italy, and Germany. A total of 964,108 hybrid-electric vehicles were registered in Q1 2025, representing 35.5% of the EU market share. Plug-in hybrid electric vehicles (PHEVs) showed modest growth, increasing by 1.1% to reach 207,048 units. Significant increases in Germany (+41.8%) and Spain (+30.7%) contributed to PHEVs accounting for 7.6% of total car registrations in the EU.

Petrol and diesel cars faced steep declines during the same period. Petrol car registrations dropped by 20.6%, with major markets like France (-34.1%), Germany (-26.6%), Italy (-15.8%), and Spain (-9.5%) reporting significant decreases. As a result, petrol cars' market share fell to 28.7%, down from 35.5% in Q1 2024. Similarly, diesel car registrations plummeted by 27.1%, leaving them with just a 9.5% market share in the first quarter of 2025. These declines reflect a broader trend toward alternative fuel sources and highlight the challenges facing traditional internal combustion engine vehicles.

March 2025 data revealed further insights into the evolving dynamics of the EU automotive market. Year-over-year comparisons showed a 17.1% increase in battery-electric car registrations and a 23.9% rise in hybrid-electric models. Conversely, petrol and diesel car registrations declined by 20.7% and 25.5%, respectively. Overall, new EU car registrations in March 2025 reflected a slight 0.2% decrease compared to the previous year. This data underscores the growing appeal of electric and hybrid vehicles while signaling a potential paradigm shift in the automotive industry.