Growing number of consumers prefer electric vehicles; market demonstrates minor stabilization

Growing number of consumers prefer electric vehicles; market demonstrates minor stabilization

Europe's Car Market Shows a Modest Rebound as Electric Vehicles Gain Traction

The demand for electric cars in Europe has shown signs of recovery in April, contributing to a minor growth in the continent's overall automobile market. According to the European Automobile Manufacturers' Association (ACEA), new vehicle registrations increased by 1.3% over the same period last year, with a notable increase in the sales of electric vehicles. A total of 145,341 electric cars were sold in April 2025, marking a growth of over 33%.

Hybrid cars also witnessed a notable surge in demand compared to the previous year. On the flip side, sales of petrol and diesel cars dropped in popularity among buyers. As a result, the market share of electric cars increased, standing at 15.3% in the first four months, a 3-percentage-point increase compared to the same period in 2024.

ACEA Director-General Sigrid de Vries noted that while the growing popularity of electric cars is encouraging, further improvements in purchasing incentives, expansion of charging infrastructure, and declining electricity prices are essential to foster widespread acceptance of these vehicles. The sustained interest in hybrid cars among consumers, she added, highlights the benefits of a flexible approach to the transition to emission-free mobility.

In the European Union, nearly one out of every three new cars is now a hybrid vehicle, whose battery is charged during the journey. When plug-in hybrids, whose battery can also be charged at home, are included, this figure rises to around 43%. Traditional petrol and diesel engines account for approximately 38% of the market share.

Leading the market, the Volkswagen Group, which includes brands such as Volkswagen, Skoda, Audi, and Porsche, registered close to 260,000 vehicle sales in the EU in April, representing an increase of 2.9% compared to the previous year. BMW posted a sales growth of nearly 10% with 66,661 cars sold, while Mercedes' sales were up by 0.7% to 46,415 units. Stellantis, with brands like Opel, Peugeot, and Fiat, reported a 1.1% decrease in vehicle sales, and Toyota recorded a drop of 8.6%. Tesla, the US-based manufacturer, saw a significant decline in sales, with a drop of over 50%.

Sources: ntv.de, RTS

Briefly integrated Enrichment DataThe robust growth in the European market for electric and hybrid vehicles can be attributed to increasing sales, expanding market share, and notable shifts in the competitive landscape. In April 2025, battery electric vehicles (BEVs) and plug-in hybrid vehicles (PHEVs) together accounted for a new record of 26% of new car registrations in Europe, with BEVs alone taking a 17% market share, up from 13.4% in April 2024. Rapid expansion of Chinese brands such as BYD, a broad lineup of competitive BEVs and PHEVs, reshaping the market, means that they have surpassed several established European brands in key markets, further fueling growth.

Regulatory mandates pushing automakers to increase their share of low- and zero-emission vehicles, consumer demand for cleaner vehicles, improved charging infrastructure, and tariffs imposed on certain electric vehicle imports to protect the domestic industry are among the key factors driving this growth. European electric car production stagnated in 2024 at 2.4 million vehicles but remains the world's second-largest electric car manufacturing area. The upcoming plant of Chinese automaker BYD in Hungary is expected to further influence market dynamics.

1. The increasing demand for electric vehicles in Europe's car market, as highlighted by the sales of over 145,000 electric cars in April 2025, reflects a shift in lifestyle preferences and technology adoption, potentially leading to a significant change in the community policy regarding emission-free mobility.
2. As small and medium-sized undertakings in the European car industry continue to adapt and innovate, such as the expansion of Chinese brands like BYD, there is a growing possibility for these companies to reshape the market landscape, thereby challenging the dominance of traditional automakers like Volkswagen, BMW, and Mercedes.

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