European Car Market Posts 1.9 Percent Drop
(MENAFN) The European passenger car market contracted by 1.9% year-on-year in the first half of 2025, with new vehicle registrations totaling 6.81 million units, according to figures released Thursday by the European Automobile Manufacturers’ Association (ACEA). The drop is being attributed to a “challenging global economic environment for auto makers.”
Within the European Union, United Kingdom, and European Free Trade Association (EFTA) countries, several major markets posted notable declines. France led the downturn with a 7.9% fall in registrations, followed by the Netherlands at 5.5%, Germany at 4.7%, and Italy at 3.6%.
In contrast, Spain bucked the trend, registering a sharp 13.9% increase in new car sales compared to the same period last year.
Electric vehicles remained a key growth driver. Sales of battery-electric vehicles (BEVs) surged 24.9% year-over-year, reaching 1.19 million units and comprising 15.6% of total new vehicle registrations.
Germany experienced a 35.1% jump in BEV sales, while Spain and Poland saw even steeper increases of 83.9% and 60.9%, respectively.
Hybrid-electric vehicles (HEVs) continued to dominate the market, making up 34.8% of EU registrations in the first six months. HEV sales climbed 16% year-on-year, reaching 2.38 million units.
Plug-in hybrid electric vehicles (PHEVs) also registered strong performance, with a 21.2% rise in sales, totaling 591,572 units.
Meanwhile, demand for traditional combustion engine vehicles dropped sharply. Petrol-powered car registrations declined by 21.7%, accounting for just 28.4% of the market.
Diesel vehicles fared worse, with registrations plunging 27.5%, reducing their market share to 9.4%. Most European countries reported double-digit declines in diesel sales.
For June alone, the European car market contracted 7.3% year-on-year, with 1.24 million new registrations recorded.
ACEA commented on the figures, stating: "With a strong 7.3% year-on-year (YOY) decline for June, also indicative of the challenging global economic environment for auto makers. The battery-electric car market share for H1 2025 stood at 15.6%, still far from where it needs to be at this point in the transition. Hybrid-electric models continue to grow in popularity, retaining their place as the most popular power type amongst buyers."
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