Fully electric car sales in December overtook petrol for the first time in the European Union, 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 auto 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.
The EU unveiled in December 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 per cent to 1.2 million cars in December and by 2.4 per cent to 13.3 million overall in 2025, ACEA data showed.
Registrations at Volkswagen and Stellantis rose 10.2 per cent and 4.5 per cent, respectively, that month, while they fell 2.2 per cent at Renault.
Registrations at Tesla fell 20.2 per cent, but rose 229.7 per cent at BYD.
Total EU car sales rose 5.8 per cent to almost one million vehicles in December, and by 1.8 per cent to 10.8 million in the year.
December registrations of battery electric, plug-in hybrid and hybrid electric cars were up 51 per cent, 36.7 per cent and 5.8 per cent, respectively, to account collectively for 67 per cent of the bloc’s registrations, up from 57.8 per cent in December 2024.
