News Center

Home >> 行业新闻 >> Europe's New Energy Vehicle Market in 2025: 2.58 Million BEVs Sold, Volkswagen Overtakes Tesla
Europe's New Energy Vehicle Market in 2025: 2.58 Million BEVs Sold, Volkswagen Overtakes Tesla
Source:芝能汽车 | Author:Brand Strategy Department | Published time: 2026-01-30 | 2 Views | Share:

Europe’s overall new car sales remained largely stable from 2020 to 2025, with 13.27 million units sold in 2025, a 2.4% year-on-year increase. Electrification (Battery Electric Vehicles, Hybrid Electric Vehicles) has seen robust growth over these years.

  • BEV sales hit 2.585 million units in 2025, surging 29.7% year-on-year and ranking as the fastest-growing powertrain category. Compared with 2020, the BEV market has expanded approximately 3.5 times, driven by the continuous advancement of regulation-driven measures (CO₂ emission targets, ICE vehicle phase-out timelines), product supply expansion and charging infrastructure development.
  • PHEV sales reached 1.273 million units in 2025, with a modest year-on-year growth of just 3.9%. Stricter rules on the actual all-electric driving ratio of PHEVs and their emission accounting have eroded the segment’s market appeal, which is being squeezed by both BEVs and HEVs simultaneously.
  • HEVs (non-plug-in hybrids, including 48V mild hybrids) delivered a strong performance: 4.567 million units were sold in 2025, a 19.9% year-on-year rise. HEVs have become the largest single new energy powertrain category in Europe, as they eliminate range anxiety and are particularly popular among consumers in Southern Europe and price-sensitive buyer groups.
Conventional internal combustion engine (ICE) vehicles are witnessing a sustained and irreversible decline.

  • Gasoline car sales dropped from nearly 6 million units in 2020 to 3.467 million in 2025, with a further 11.7% year-on-year decrease in 2025.

  • Diesel cars saw an even more dramatic slump: sales stood at 1.026 million units in 2025, plunging by nearly 64% compared with 2020.

01 Battery Electric Vehicle (BEV) Market

Europe’s BEV sales totalled 2.585 million units, a 29.7% year-on-year growth.

By Sales Volume

  • Germany led the market with 545,000 units sold, making it Europe’s largest single BEV market. Together with the UK (473,000 units) and France (327,000 units), these three markets accounted for over 1.3 million BEV sales, nearly half of Europe’s total BEV volume.

  • The second tier is concentrated in Nordic and Northwestern European countries, where Norway (172,000 units), the Netherlands (156,000 units), Belgium (144,000 units), Denmark (127,000 units) and Sweden (100,000 units) form a stable market with sales exceeding 100,000 units each.

  • Southern European countries also posted solid results, including Spain (102,000 units), Italy (95,000 units) and Portugal (52,000 units). Central and Eastern European countries generally recorded sales in the tens of thousands to thousands range, with Poland (43,000 units) being a standout performer.

By Penetration Rate

Europe’s BEV penetration rate features a clear tiered structure:

  • Norway achieved nearly full electrification with a BEV penetration rate of 95.9%. Denmark, the Netherlands, Sweden, Finland, Malta and Iceland generally saw penetration rates ranging from 35% to 70%.

  • Major mid-to-large markets such as Germany, the UK, France, Portugal and Switzerland had a concentrated penetration rate of 18% to 23%.

  • In contrast, Italy, Spain, Poland, the Czech Republic, Romania and other countries still had a low penetration rate of around 5% to 10%.

Brand Performance: Volkswagen’s BEV sales rose 56% year-on-year to 274,417 units, while Tesla’s sales fell 27% year-on-year to 238,765 units.

02 Plug-in Hybrid Electric Vehicle (PHEV) Market

Europe’s full-year PHEV sales totalled approximately 1.27 million units, a 33.4% year-on-year increase, with sales highly concentrated in a handful of large markets: Germany (311,000 units), the UK (225,000 units), Spain (124,000 units), France (109,000 units) and Italy (94,000 units). Most other countries recorded only thousands to tens of thousands of PHEV sales, reflecting weak demand for the segment.
Europe’s overall PHEV penetration rate stands at just 7.2%, with most countries in the 3% to 10% range. Only a few mature markets such as Belgium, Finland, the Netherlands and the UK posted decent PHEV sales, while mature markets including France, Sweden, Switzerland and Norway have seen a year-on-year decline in PHEV sales, as the segment is being replaced by BEVs.
Brand Performance: Volkswagen’s PHEV sales soared 205% year-on-year to 159,173 units; BMW’s PHEV sales reached 142,285 units, a 15% year-on-year rise; Mercedes-Benz’s PHEV sales fell 4.8% year-on-year to 135,878 units.

03 Hybrid Electric Vehicle (HEV) Market

HEVs (including 48V mild hybrids) have become the absolute mainstay of Europe’s new energy vehicle market, with full-year sales hitting 4.567 million units—approximately 3.6 times the volume of PHEVs.
Germany (816,000 units), France (716,000 units), the UK (745,000 units), Italy (692,000 units), Spain (483,000 units) and Poland (273,000 units) form the core market for HEVs in Europe.
Europe’s overall HEV penetration rate reached a high of 34.4%. In France, Italy, Spain, Poland, Greece, Hungary and other countries, the rate has hit 40% to 50% or even higher, making HEVs the primary alternative to conventional ICE vehicles (owing to their straightforward usability in practice).
Brand Performance (Strong Hybrid Market): Toyota’s HEV sales in Europe fell 8.5% year-on-year to 626,675 units in 2025; Renault ranked second with 287,364 units sold, a 17% year-on-year growth.

04 Automaker Market Share

2025 Market Scale and Landscape

  • Volkswagen Group retained its top position with 3.57 million units sold and a 26.9% market share—nearly double that of Stellantis, the second-ranked automaker—with a positive 5.1% year-on-year growth.

  • Stellantis (1.89 million units) underperformed, posting a 3.9% year-on-year sales decline.

  • Renault Group (1.36 million units, +5.9% YoY) and BMW Group (970,000 units, +5.1% YoY) emerged as the backbone of the European market.

  • Hyundai Group and Toyota Group maintained sales around the 1 million unit mark but both recorded a slight year-on-year decline.

The Biggest Variable in 2025: The Rapid Rise of Chinese Automakers

  • SAIC sold 306,000 units in Europe, a 24.9% year-on-year increase.

  • BYD’s European sales reached 188,000 units, representing an explosive 268.6% year-on-year growth.

  • Tesla’s sales fell 26.9% year-on-year, with its market share dropping to 1.8%.

Conclusion

Chinese automakers hold significant opportunities in Europe’s 13-million-unit new car market. Entering the European market at the agreed minimum price and within quota limits presents a profitable venture for Chinese brands.