Sales of fully electric cars surpassed those of petrol-only vehicles in the European Union for the first time ever in December 2025, according to new data from the European Automobile Manufacturers’ Association (ACEA).
Despite the EU having softened its 2035 car emissions ban, the bloc registered more hybrid electric cars last year, signalling a shift.
The European Union announced that the bloc-based carmakers will need to comply with a 90% reduction in CO2 emissions from 2035, instead of the 100% previously set in EU law.
This move revoked a controversial wholesale ban on internal combustion engine (ICE) vehicles adopted in March 2023.
Overall, in 2025, hybrid electric cars, which have batteries and gasoline engines, remain the top category.
Germany, the Netherlands, Belgium, and France were the four largest electric vehicle (EV) markets in the EU.
These four member states together accounted for 62% of battery-electric car registrations.
By the end of 2025, petrol car registrations fell by 18.7%, with all major markets seeing declines.
France experienced the steepest drop, with registrations plummeting by 32%, followed by Germany, down by 21.6%, Italy by 18.2%, and Spain with a 16% decline.
At the end of 2025, petrol and diesel cars lost a large share of the market in many parts of Europe.
While petrol still accounts for over a quarter of the market, diesel’s share fell below 10%.
Why is this happening?
Consumer preferences for whether a new passenger car should be powered by petrol, diesel or an alternative fuel are mainly influenced by national incentives and taxation rules, according to Eurostat.
Last year, Italy, Poland, and Greece were the countries offering the most generous government subsidies for purchasing EVs.
Italy offers around €11,000 for individuals, covering up to 30% of the total purchase price of a new electric car. The amount of the incentive depends on income, and cars with a price tag higher than €42,700 including VAT are exempt from this programme.
Greece and Poland each offer around €9,000 in subsidies for individuals.
In Greece, this is topped off with an additional €2,000 for scrapping an old, polluting vehicle and €1,000 if the purchaser is under 29 years old. Moreover, the country offers generous tax incentives. BEVs are exempt from registration tax, and the lowest-emitting vehicles are also exempt from circulation tax.
More than 8% of the EU’s GDP is generated by the auto industry.
The EU automobile industry generates 8.1% of all manufacturing jobs in the EU, with 13.6 million Europeans working in the automotive sector.
