Some 1.88 million new vehicles were registered in 2025 in the EU, an increase of 1.8% from the previous year, according to the European Automobile Manufacturers’ Association (ACEA).

New car sales “remain well below pre-pandemic levels”, however, the trade association said in a statement.

Despite the only modest overall sales growth, consumers continued to shift towards hybrid and battery-electric vehicles.

Sales of hybrid-electric vehicles climbed by 13.5% last year to account for 34.5% of total sales in the EU, putting them ahead of petrol cars at 26.6%.

Meanwhile, sales of battery-electric vehicles jumped by 30% to account for 17.4% of overall sales, although the ACEA noted the gain was from a weak performance in 2024 and needs to rise further to stay on track with the EU’s transition goals.

Sales of plug-in hybrids also rose, but sales of petrol and diesel vehicles dropped.

The combined market share of petrol and diesel cars fell to 35.5%, down from 45.2% in 2024.

Volkswagen Group saw sales rise by 5.5% last year to increase its lead as the top-selling carmaker in Europe.

France’s Renault saw similar growth, but Stellantis — which owns several European brands such as Peugeot and Fiat — saw sales slide by 4.7%.

Chinese carmaker BYD tripled its sales in the EU last year, although from a small base.

China’s SAIC Motor, which owns the MG brand, saw sales rise by a third.

Sales of Teslas fell by nearly 38% last year as the electric car brand has suffered reputational damage in Europe from its association with billionaire Elon Musk, who backed US President Donald Trump before a falling-out, and who has endorsed Germany’s far-right AfD party.