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In Europe, the transition to electric vehicles (EVs) is gathering momentum, with 2025 marking a significant year in this shift. Key trends include a surge in battery electric vehicles (BEVs) sales, rapid growth of plug-in hybrid electric vehicles (PHEVs), and a sharp decline in petrol and diesel car registrations.
In the first half of 2025, the European Union registered 869,271 new battery-electric cars, capturing a 15.6% market share. This was accompanied by a 41.6% year-on-year growth in plug-in hybrid registrations, with 469,410 units delivered. Germany, Spain, and Italy showed significant PHEV growth, partly driven by cost advantages of Chinese imports.
Petrol and diesel vehicle registrations dropped sharply, with petrol down 21.2% and diesel down 28.1% year-to-date mid-2025. This reduction in their combined market share to 37.8% is a clear sign of the shift away from fossil fuels. BEV registrations grew 34% in H1 2025 compared to 2024, indicating an accelerating adoption of fully electric vehicles across Europe.
Chinese EV manufacturers are playing an increasingly important role, offering lower-cost EV models averaging about €32,000. By 2024, 25% of EVs sold in the EU were Chinese-made, creating competitive pressure on European manufacturers who struggle with higher prices above €50,000 on average.
The European market is forecast to reach a 25% EV market share for new car sales in 2025, with overall European EV light vehicle sales expected to grow 23.1% year-on-year to around 3.77 million units. Expansion of EV charging infrastructure and the rise of complementary clean energy solutions, such as home solar PV and battery storage, are critical supporting factors for long-term EV adoption and energy system transformation.
However, challenges remain. High upfront EV costs, uneven infrastructure rollout among countries, and the need for a united EU strategy to align industrial, climate, and security goals with increasing dependence on Chinese EV supply chains are issues that need to be addressed.
In the Netherlands, the BEV option is currently the cheapest choice for Total Cost of Ownership (TCO), followed by the PHEV, with diesel being the most expensive. This TCO advantage is due to the government making driving Internal Combustion Engine (ICE) vehicles more expensive than driving an EV.
In contrast, Belgium is forecast to see a larger negative adjustment in BEV prices due to a greater presence of BEVs in the market compared to Germany. The German used-car market, on the other hand, has seen a slowing pace in BEV price adjustments.
EV adoption varies across Europe, with the Nordics leading in market share and southern countries like Spain and Italy, as well as Eastern European countries like Poland, Romania, and Hungary, experiencing lower shares.
Looking ahead, Europe's EV market is expected to continue expanding, supported by policy incentives, increasing variety and affordability of EV models, and improvements in charging infrastructure. The European Commission's Industrial Action Plan for the automotive sector includes a proposed 100% CO emission reduction target for passenger-car fleets by 2035.
The EU is also considering learning from past incentive plans and addressing the used-car market to facilitate the transition to EVs. An amendment to the plan could see CO limits between 2025 and 2027 combined into an average target, allowing carmakers to compensate for exceeding targets in one or two years by overachieving in the remaining time.
Portugal is an exception, with every third car registered in 2024 being an EV, due to recent government incentives and geographical factors like shorter distances and a warmer climate. In Spain, BEVs are forecast to come under further pressure in 2025 due to stock saturation, especially of outdated three to four-year-old models.
Transitional powertrains like hybrids offer more economical technology and do not rely on charging infrastructure, making them an attractive alternative for consumers. Hybrid electric vehicles (HEVs) and mild hybrid electric vehicles (MHEVs) experienced double-digit growth, with 294,628 and 337,086 additional units delivered respectively.
In summary, Europe's EV transition in 2025 is characterized by rapid market growth particularly in BEVs and PHEVs, falling market shares of fossil fuel vehicles, increasing influence from Chinese EV producers, and supportive policy and infrastructure developments. This trajectory is expected to continue post-2025, pushing Europe steadily towards its climate and decarbonization targets in the transport sector.
[1] Source: EV Volumes [2] Source: European Automobile Manufacturers Association (ACEA) [3] Source: Reuters [4] Source: EV-Volumes [5] Source: JATO Dynamics
In the United Kingdom, one can observe a transformation in personal transportation, as the electric vehicle (EV) market continues to surge, driven by increased sales of both battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs). In 2025, an impressive 609,992 new EVs were registered, accounting for approximately 14% of the total car market, according to EV-Volumes. Such growth realigns the British auto market, as petrol and diesel registrations experienced notable declines.
This trend mirrors the European Union's overall strategic plan to reduce their dependence on fossil fuels and meet emissions targets. With the European Commission's Industrial Action Plan for the automotive sector calling for a 100% CO emission reduction target for passenger-car fleets by 2035, European countries will continue embracing technology such as electric vehicles as they strive towards a greener and more sustainable lifestyle.
[1] Source: EV Volumes [2] Source: European Automobile Manufacturers Association (ACEA) [3] Source: Reuters [4] Source: EV-Volumes [5] Source: JATO Dynamics
