News

Fully electric vehicles outsold petrol cars in the European Union for the first time in December, marking a significant shift in the region’s car market, according to new figures released by the European automotive industry.

Data from European Automobile Manufacturers’ Association shows that battery electric vehicles moved ahead of petrol-powered cars during the month, even as EU policymakers signalled a willingness to soften long-term emissions targets for the sector.

The figures highlight growing competitive pressure within the electric vehicle market. Tesla continued to lose ground to rivals, including China’s BYD and Europe’s largest carmaker, Volkswagen.

Across Europe, overall car registrations recorded a sixth consecutive month of year-on-year growth. Total sales volumes reached their highest level in five years during 2025, although they remained below levels seen before the pandemic. The industry continues to face headwinds, including strong competition from Chinese manufacturers, the impact of US import tariffs and the cost of complying with domestic regulations linked to electric vehicle adoption.

In December, the EU outlined proposals that could move away from an effective 2035 ban on new combustion engine cars, responding to concerns raised by parts of the automotive industry. Electric transport advocates have warned that easing targets could slow progress in reducing carbon emissions, although analysts still expect demand for electric vehicles to grow.

Sales across the EU, the UK and the European Free Trade Association rose by 7.6% in December to 1.2 million vehicles. For the full year, registrations increased by 2.4% to 13.3 million units.

Among major manufacturers, registrations rose by 10.2% at Volkswagen and by 4.5% at Stellantis during December, while Renault recorded a decline of 2.2%. Tesla registrations fell by 20.2% over the same period, while BYD reported growth of almost 230%.

Within the EU alone, car sales increased by 5.8% in December to nearly one million vehicles, with annual registrations up 1.8% to 10.8 million. Registrations of battery electric, plug-in hybrid and hybrid electric vehicles rose sharply, up 51%, 36.7% and 5.8% respectively. Combined, these vehicles accounted for 67% of all EU registrations in December, compared with 57.8% in the same month last year.

Disclaimer: This article is based on publicly available information and is intended for general guidance only. While every effort has been made to ensure accuracy at the time of publication, details may change and errors may occur. This content does not constitute financial, legal or professional advice. Readers should seek appropriate professional guidance before making decisions. Neither the publisher nor the authors accept liability for any loss arising from reliance on this material.