Fully electric passenger car registrations in the European Union surpassed petrol-powered car registrations in December for the first time, according to data released by the European auto lobby ACEA. The milestone comes as policymakers have proposed loosening emissions regulations, creating a complex backdrop for the industry.
The ACEA data indicate Tesla, a U.S. battery-electric brand, continued to cede market share to rivals including Chinas BYD and Europes top-selling group Volkswagen. Overall, European car sales maintained year-on-year growth for a sixth consecutive month, with registration volumes reaching the highest total in five years across Europe for 2025, though they still lagged levels recorded before the pandemic.
Industry observers note several headwinds for Europes automotive sector, including increasing competition from Chinese manufacturers, potential U.S. import tariffs, and the challenge of meeting domestic EV adoption requirements in a way that remains profitable for carmakers. In December, the EU announced a plan to drop what had effectively been a 2035 ban on combustion engine vehicles, responding to pressure from struggling manufacturers. At the same time, groups advocating for electric transport have emphasized that a rapid transition to EVs is necessary to reduce CO2 emissions.
Despite the regulatory softening, analysts cited in the ACEA report expect electric vehicles to continue gaining acceptance among buyers.
By the numbers
- Sales across the EU, Britain and the European Free Trade Association rose 7.6% to 1.2 million cars in December, and climbed 2.4% to 13.3 million cars for the full year of 2025, according to ACEA figures.
- Brand-level registration changes in December included a 10.2% increase at Volkswagen and a 4.5% rise at Stellantis, while Renault registrations declined 2.2% that month.
- Teslas registrations fell 20.2% in December, while BYDs registrations jumped 229.7% in the same period.
- Total EU car sales rose 5.8% to almost one million vehicles in December, and increased 1.8% to 10.8 million over the year.
- December registrations of battery electric, plug-in hybrid and hybrid electric cars rose 51%, 36.7% and 5.8%, respectively, and together made up 67% of bloc registrations, up from 57.8% in December 2024.
Promotional note included in the original data release
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Where the data are limited or context remains unresolved, the ACEA release itself contains the primary figures and observations summarized above.