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In the first half of 2025, Europe's new-car market experienced a slight decline of 1.9%, with a more pronounced drop of 7.3% in June, as reported by various sources [1][3][4]. However, a closer look at the data reveals a more nuanced picture, with some countries embracing electrification trends while others grapple with broader market contractions.
Spain, for instance, is one of the success stories, showing strong growth in the new-car market with a 14% increase in total passenger car registrations compared to H1 2024 [2]. Other countries demonstrating notable growth in electric vehicle (EV) registrations include Czechia (66% increase) and Poland (61% increase) for battery electric vehicles (BEVs) [2]. Germany stands out with a significant 35.1% rise in BEV registrations, although its total new car registrations fell by 5% in the same period [1][2].
On the other hand, France, Belgium, Germany, and Italy are areas of concern, with declines in total new passenger car registrations: France by 8%, Belgium by 11%, Germany by 5%, and Italy by 4% [2]. France specifically saw a 6.4% decline in BEV registrations despite being a major market [1][2].
The shift towards electrified vehicles (BEVs and hybrids) is evident across Europe, with BEVs rising from 12.5% to 15.6% market share in H1 2025 [1]. Hybrid vehicles hold the largest segment with 34.8% market share [1].
Sweden and the Netherlands continue to push forward in EV adoption, with healthy BEV figures and double-digit PHEV gains. Together, BEVs and PHEVs accounted for 26% of the overall market in June, with 262,666 units registered [1].
France has suffered the strongest petrol slump, with a 33.7% year-on-year decline from January to June [1]. PHEVs saw a 41.6% year-on-year increase in June, accounting for 9.3% of new-car volumes with 94,178 deliveries [1].
Ireland enjoyed the biggest overall registrations climb with a 63.2% year-on-year increase, while Portugal saw a 14.8% surge in registrations in June [1]. Spain is the most prosperous of the major EU markets, with a 13.9% increase in registrations for the first six months of 2025 [2]. Italy witnessed a double-digit decline of 17.4% in June [2].
PHEVs undoubtedly drove the growth in Latvia and Lithuania, with a 393.5% increase in Latvia and a 393.5% increase in Lithuania [1]. Slovakia and Slovenia saw triple-digit monthly increases in both the BEV and PHEV markets in June [1].
After six months, Internal Combustion Engine (ICE) registrations are down 23% year-on-year, holding just 37.8% market share [1]. Between January and June, BEV registrations in Spain increased by 103.2% [2]. Portugal saw a 14.8% surge in registrations in June [1].
Lithuania has seen a 40.6% increase in registrations compared with the first half of 2025 [1]. This mixed picture suggests differential performance across the EU, with some markets adapting well to electrification trends while others face broader market contractions.
- Declines in the new-car market were not uniform across Europe, as some countries, such as Spain, showed strong growth in car registrations, while others experienced market contractions.
- Germany exhibited a significant rise in battery electric vehicle (BEV) registrations, but a decrease in total new car registrations, indicating a shift towards electrified vehicles.
- France, despite being a major market, suffered a decline in both total new passenger car registrations and BEV registrations, illustrating a more complex picture in the European automotive industry, with varying trends in electric-vehicles adoption.
