Fully electric car (EV) sales in December overtook petrol for the first time in the EU, even as policymakers proposed to loosen emissions regulations, data showed on Tuesday.
US battery-electric brand Tesla continued to lose market share to competitors, including China’s BYD and Europe’s best-selling group, Volkswagen, data from the European car lobby ACEA showed.
Car sales throughout Europe sustained a sixth straight month of year-on-year growth, with overall registrations, a proxy for sales, hitting their highest volumes in five years in Europe in 2025, though they remained well below pre-pandemic levels.
Europe’s car industry faces challenges including competition from China, US import tariffs, and difficulties in profitably meeting domestic regulations for EV adoption.
In December the EU unveiled a plan to abandon an effective 2035 ban on combustion engine cars, bowing to calls from struggling carmakers. Electric transport groups argue a swift EV transition is necessary to curb CO² emissions.
Analysts expect EVs to gain popularity despite the policy relaxation.
Sales in the EU, Britain, and the European Free Trade Association rose by 7.6% to 1.2-million cars in December and by 2.4% to 13.3-million overall in 2025, ACEA data showed.
Registrations at Volkswagen and Stellantis rose 10.2% and 4.5%, respectively, that month, while they fell 2.2% at Renault.
Registrations at Tesla fell 20.2%, but rose 229.7% at BYD.
Total EU car sales rose 5.8% to almost one million vehicles in December and by 1.8% to 10.8-million in the year.
December registrations of battery electric, plug-in hybrid, and hybrid electric cars were up 51%, 36.7%, and 5.8%, respectively, to account collectively for 67% of the bloc’s registrations, up from 57.8% in December 2024.
Reuters
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