EU Car Registrations Drop 1.9% in H1 2025, Hybrid-Electric Models Remain Dominant

Strategic Insights -

The first half of 2025 saw new EU car registrations decline by 1.9% compared to the same period last year, amidst a challenging global economic environment. Despite this decline, hybrid-electric models continued to grow in popularity, capturing 34.8% of the market and remaining the preferred choice among EU consumers. Battery-electric car registrations rose to 15.6% of the EU market share, driven by growth in key markets such as Germany, Belgium, and the Netherlands.

Key Takeaways:

  • Hybrid-electric models retained their position as the most popular power type amongst buyers, accounting for 34.8% of the market share.
  • Battery-electric car registrations increased to 15.6% of the EU market share, driven by growth in key markets such as Germany (+35.1%), Belgium (+19.5%), and the Netherlands (+6.1%).
  • Plug-in-hybrid electric cars recorded a 41.6% increase in June 2025, representing 8.4% of total car registrations in the EU.
  • The market share for petrol cars dropped to 28.4%, a decline from 35.4% in the same period last year.
  • Diesel car registrations fell by 28.1%, resulting in a 9.4% share for diesel vehicles in June 2025 YTD.
  • The European Automobile Manufacturers' Association (ACEA) represents 16 major Europe-based car, van, truck, and bus makers, including BMW Group, Daimler Truck, and Volkswagen Group.
  • The EU automobile industry generates over 7.5% of EU GDP, with €72.8 billion spent on R&D annually.

Statistics:

  • EU car registrations declined by 1.9% in H1 2025 compared to the same period last year.
  • Hybrid-electric car registrations rose to 1,942,762 units in H1 2025, a growth of 34.8% of the total EU market share.
  • Plug-in-hybrid electric car registrations increased by 41.6% in June 2025, representing 8.4% of total car registrations in the EU.
  • Battery-electric car registrations reached 869,271 units in H1 2025, capturing 15.6% of the EU market share.
  • Petrol car registrations declined by 21.2% in the first half of 2025, with the market share dropping to 28.4%.
  • Diesel car registrations fell by 28.1% in the first half of 2025, resulting in a 9.4% share for diesel vehicles in June 2025 YTD.

Sources:

  • European Automobile Manufacturers' Association (ACEA)
  • European Automobile Manufacturers' Association (ACEA) press release, July 24
  • European Automobile Manufacturers' Association (ACEA) website
  • ACEA Twitter handle (@ACEA_auto)
  • ACEA LinkedIn page (www.linkedin.com/company/ACEA/)