The EU Automotive Market Grows Driven by Electrified Vehicles

Registrations of new vehicles in the European Union (EU) increased by 5.8% in October compared to the same month last year, reaching 916,609 units, according to data from the European Automobile Manufacturers Association (ACEA).

In the first ten months of 2025, the European market registered over 8.9 million vehicles, marking a 1.4% increase compared to the same period in 2024.

Despite this recent positive momentum, overall volumes remain significantly below pre-pandemic levels.

The trend towards electrification is solidifying, marking significant changes in the market composition. The market share of Battery Electric Vehicles (BEV) reached 16.4% so far this year, an increase of 3.2 percentage points compared to October 2024.

By the tenth month of the year, over 1.47 million units were registered, a 25.7% year-on-year increase. Hybrid-Electric Vehicles (HEV) remain the most popular motorization option, leading with a market share of 34.65% and recording a year-on-year growth of 15.6%.

Plug-in Hybrid Vehicles (PHEV) continue to gain ground, with 819,201 units registered in the same period. This growth is attributed to a strong volume increase in key markets such as Spain, with a 109.6% rise, Italy, with a 76.5% increase, and Germany, with a 63.4% rise. As a result, PHEVs now represent 9.1% of vehicle registrations in the EU, up from 7% last year.

Due to the rise of alternative motorization, the combined market share of petrol and diesel vehicles fell to 36.6%, a sharp decline from the 46.3% recorded in the same period of 2024.

Petrol vehicle registrations decreased by 18.3% by the end of October 2025, with declines in all major markets. France experienced the steepest drop, with a 32.3% plunge, followed by Germany with a 22.5% decrease, Italy with a 16.9% decline, and Spain with a 13.7% drop.

With 2,459,151 new vehicles registered, the petrol market share reduced to 27.4% compared to 34% the previous year. Similarly, the diesel vehicle market experienced a 24.5% decline, resulting in a market share of 9.2% by October 2025.