In 12/2025, battery electric vehicle (BEV) sales in the European Union (EU) surpassed those of gasoline cars for the first time, according to data released by the European Automobile Manufacturers' Association (ACEA). Total new car registrations in the EU, UK, and European Free Trade Association (EFTA) countries increased by 7,6% in 12/2025. For the full year 2025, new car sales in these markets rose by approximately 2,4%.

Chart of battery electric vehicle (BEV) and gasoline car sales in Europe from 1/2022-12/2025. *Source: Reuters*

ACEA reported that when combining battery electric vehicles, plug-in hybrid electric vehicles, and conventional hybrid electric vehicles, electrified vehicles accounted for approximately 67% of total new registrations in 12/2025. This marked an increase from 57,8% recorded in the same period last year.

The data also revealed significant differences among car manufacturers. In 12/2025, new vehicle registrations for Volkswagen increased by 10,2%, and Stellantis saw a 4,5% rise compared to the same period last year. Conversely, Tesla recorded a 20,2% decrease. Notably, registrations for Chinese manufacturer BYD surged by 229,7% during the same period.

An electric car charging in Hungary. *Photo: Zerocarbonadventures*

This development occurs as the European Union is reviewing several emission-related regulations. Among these is a proposal to modify the plan to ban the sale of internal combustion engine vehicles from 2035, aimed at reducing CO2 emissions. However, this plan faces opposition from some member states and car manufacturers, as the European automotive industry confronts increasing competitive pressure from Chinese carmakers.

Analysts predict that electric vehicles will continue to grow in popularity in the near future, even if the EU considers relaxing some emission regulations. This is because increasingly stringent CO2 emission standards for manufacturers continue to pressure companies to boost electrified vehicle sales to avoid significant penalties.

Ho Tan (Reuters)