New car registrations fall across Europe, except in Spain

New car registrations in the EU as a whole fell by -2.6% in January 2025, including in the union's main markets: France (-6.2%), Italy (-5.8%) and Germany (-2.8%). In contrast, Spain recorded an increase of 5.3%.

According to data published by the European automobile manufacturers association (Acea), registrations of passenger cars and SUVs in Europe reached 831,201 units in January, 2.6% fewer than the 853,249 registered in January 2024.

Battery electric vehicles accounted for 15% of the market share, up from the comparatively low 10.9% in January 2024. Hybrid-electric vehicles took the lead, dominating almost 34.9% of the market and remaining the preferred choice among EU car buyers. Meanwhile, the combined market share of petrol and diesel cars fell to 39.4% in January 2025, down from 48.7% in 2024.

Sales of new plug-in electric cars grew 34%, representing a 15% market share. Three of the EU's four largest markets, which together account for 64% of all battery electric car registrations, recorded solid double-digit gains: Germany (+53.5%), Belgium (+37.2%) and the Netherlands (+28.2%), while France experienced a slight decrease of -0.5%.

Hybrid-electric vehicle sales increased by 18.4%, driven by significant growth in the four largest markets: France (+52.2%), Spain (+23.5%), Germany (+13.7%) and Italy (+10.6%). This led to the registration of 290,014 cars in January 2025, representing 34.9% of the EU market share.

Plug-in hybrids declined by 8.5%, mainly due to significant reductions in key markets such as Belgium (-66.6%) and France (-54%). As a result, plug-in hybrid electric vehicles now account for 7.4% of total car sales in the EU.

Petrol car registrations experienced a significant drop of 18.9%, with all major markets showing declines. France experienced the steepest drop, with registrations falling by 28.2%, followed by Germany (-23.7%), Italy (-17%) and Spain (-11.1%).

With 244,763 new cars registered in January 2025, the market share of petrol cars fell to 29.4%, down from 35.4% in January 2024. Similarly, the market for diesel cars fell by 27%, resulting in a 10% market share for diesel vehicles. Overall, double-digit declines were observed in most EU markets.

The Volkswagen Group (owner of Volkswagen, Skoda, Audi, Cupra, Seat, Porsche and others) has started the year as the manufacturer that has registered the most cars in the EU market - 229,898 units, 5.6% more than in January 2024.

It is followed by the Stellantis Group (owner of 14 brands), which registered 162,506 cars, down 17.9% year-on-year, and the Renault Group, which registered 90,362 units, up 5%.

By brands, the one with the highest sales in the European market was Volkswagen, with 95,975 units, up 14.9%, followed by Japanese Toyota, with 65,794 units (-7.8%) and Skoda, with 52,549 units (-4.4%).

Although electric vehicle sales grew by 34% on the continent, Tesla registrations plummeted by 50% (7,517 cars).