Decrease in New Car Registrations: A 0.6% Drop Year-to-Date in 2025, with Battery-electric Vehicles Holding a 15.4% Market Share
**EU Car Registrations Shift Towards Sustainable Options in 2025**
The trend in EU car registrations by power source for the first five months of 2025 reveals a significant shift towards more sustainable options, according to industry reports.
Hybrid-electric vehicles have emerged as the leading type, capturing 35.1% of the market, marking a nearly 20% increase compared to the same period in 2024. Battery-electric vehicles (BEVs) continue to gain traction, representing 15.4% of the market, indicating a steady increase in their adoption.
On the other hand, petrol and diesel cars have seen a decline, with their combined market share falling to 38.1% from 48.5% in the previous year. New hybrid-electric car registrations in May 2025 YTD reached 1,601,090 units, while new BEV sales in the same period amounted to 701,089 units.
Regional variations in BEV registrations are worth noting. Germany, Belgium, and the Netherlands saw gains in BEV registrations, with Germany recording a 43.2% increase, Belgium a 26.7% increase, and the Netherlands a 6.7% increase. However, France experienced a decline of 7.1% in BEV sales.
Similarly, plug-in-hybrid electric cars showed a 46.9% increase in May 2025, marking the third consecutive month of strong growth. Registrations of plug-in-hybrid electric cars in May 2025 YTD reached 375,182 units.
Notable increases in plug-in-hybrid electric car registrations were observed in Germany and Spain. France, Spain, Italy, and Germany saw growth in hybrid-electric car registrations. However, France experienced the steepest drop in petrol car registrations, with a decline of 34.3%. Spain and Italy saw decreases of 13.3% and 15.4% in petrol car registrations, respectively.
Globally, plugin vehicles (including both BEVs and hybrid-electric vehicles) reached a 25% share of total registrations in May, with BEVs alone accounting for 16% of the market.
In May 2025, the YOY variation for hybrid-electric cars increased by 16%, while the YOY variation for battery-electric cars increased by 25%.
Overall, new car registrations in the EU fell compared to the previous year, but there was a small increase in May registrations. The market share for petrol cars dropped to 28.6% by the end of May 2025, while the diesel car market declined by 26.6%, resulting in a 9.5% share for diesel vehicles in May 2025 YTD.
[1] EU Car Registrations by Power Source - May 2025 YTD Report [2] Global Plugin Vehicle Market Share - May 2025 Report [3] EU Car Registrations - May 2025 Report [4] EU Car Registrations YOY Comparison - May 2025 Report [5] Battery-Electric Vehicle Market Share - May 2025 YTD Report
The industry report on EU car registrations by power source for the first five months of 2025 also highlights a surge in the finance sector's interest in sustainable options, particularly in the technology of electric vehicles. The increase in hybrid-electric and battery-electric vehicle registrations suggests growing investment in these areas, with significant financial implications for the future of the automotive industry.
In this context of the EU's shift towards sustainable options, the finance industry's focus on technology-driven solutions, such as electric vehicles, is expected to continue, contributing to the overall growth and transformation of the automotive sector while reducing carbon emissions.
