Electric vehicle sales in the European Union overtakes petrol | REUTERS

Key Concepts

• EV Adoption: The increasing rate of electric vehicle purchases.
• Combustion Engine Ban (2035): Previously planned EU regulation to effectively end sales of new petrol/diesel cars by 2035, now loosened.
• Market Share: The percentage of total sales controlled by a specific manufacturer.
• Registrations: Used as a proxy for car sales figures.
• ACA (European Auto Lobby): The source of the data cited in the report.
• EFTA (European Free Trade Association): A trade bloc including Iceland, Liechtenstein, Norway and Switzerland.

Electric Vehicle Sales Surpass Petrol in EU – December 2025 Data

In December 2025, fully electric car sales in the European Union surpassed petrol car sales for the first time, marking a significant milestone in the transition to electric mobility. This occurred despite ongoing discussions and proposals from policymakers to relax emissions regulations, specifically concerning the planned phase-out of combustion engine vehicles. Data from the European Auto Lobby (ACA) indicates this shift in consumer preference.

Sales Growth and Overall Market Performance

Car sales across Europe experienced a sustained period of growth, achieving a sixth consecutive month of year-on-year increases. Total car registrations – used as a reliable indicator of sales volume – reached their highest levels in five years during 2025. Specifically, sales across the EU, Britain, and the European Free Trade Association (EFTA) rose by 7.6% in December, totaling 1.2 million cars.

Manufacturer Performance – Gains and Losses

The market witnessed varied performance among major car manufacturers. Volkswagen (VW) experienced a sales increase exceeding 10%, while Stellantis saw growth of 4.5%. Conversely, Renault faced a 2.2% decline in registrations. Tesla, previously a dominant force in the EV market, experienced a significant downturn, with registrations falling by over 20%. This loss of market share is attributed to increasing competition.

Rise of BYD and Competitive Landscape

China’s BYD demonstrated substantial growth, achieving a remarkable 229% increase in sales. This surge highlights the growing competitive pressure from Chinese manufacturers entering the European market. The data underscores a shift in the EV landscape, with established players like Tesla facing challenges from both Chinese and European competitors like Volkswagen.

EU Policy Shift and Future Outlook

In December, the European Union announced plans to abandon the previously proposed effective ban on combustion engine cars by 2035. This decision came in response to concerns raised by struggling car manufacturers. However, despite this policy relaxation, analysts predict that the popularity of EVs will continue to rise. This suggests that market forces and consumer demand are likely to drive EV adoption even without stringent regulatory mandates.

Challenges Facing the European Automotive Industry

The European car industry faces a complex set of challenges. These include intensifying competition from Chinese manufacturers, the potential imposition of US import tariffs, and the ongoing difficulties associated with meeting domestic regulations designed to promote EV adoption. These factors collectively create a dynamic and potentially volatile environment for automotive businesses operating in Europe.

Data Summary

• December 2025: EV sales overtook petrol car sales in the EU for the first time.
• Overall Sales Increase: 7.6% across EU, Britain, and EFTA.
• Total Registrations (December): 1.2 million cars.
• VW Sales Increase: >10%.
• Stellantis Sales Increase: 4.5%.
• Renault Sales Decrease: 2.2%.
• Tesla Registrations Decrease: >20%.
• BYD Sales Increase: 229%.

Conclusion

The December 2025 data reveals a pivotal moment in the European automotive market – the first instance of electric vehicle sales exceeding those of petrol cars. While policy adjustments have been made regarding the 2035 combustion engine ban, the underlying trend towards electrification remains strong, driven by consumer demand and increasing competition. The industry faces significant challenges, but the overall outlook for EV adoption in Europe remains positive.