Electric vehicles made a significant step forward in Europe in 2025, with a total of 2.6 million EVs registered last year.
Battery electric vehicles (BEVs) were a bright spot, with volumes increasing by 29% compared to 2024 to reach a market share of 20%, according to data from Jato Dynamics.
Volkswagen overtook Tesla to claim the status of the continent’s best-selling BEV brand, with 274,000 units registered in total in 2025, up 56% year on year.
Growth for the brand has been driven by the introduction of the ID.7, which, together, with the Elroq on Skoda, will play an important role in the group’s ability to cut emissions and avoid penalties.
Despite a 28% fall in volumes compared with 2024, the Tesla Model Y remained the best-selling BEV in Europe last year.
It was followed by the Skoda Elroq (93,000 units in its first full year) and the Tesla Model 3, which also saw registrations decline by almost a quarter (-24%) year on year.
Overall, 2025 was a positive year for Europe’s new passenger car market with registrations up 2.3% for the full year and 13.2 million units registered.
Despite this growth, registrations remain below pre-pandemic levels, with 2025 volumes down 16.5% on the 15.8 million units registered in 2019.
Globally, this makes Europe an outlier. By comparison, volumes in Latin America and North America were down 1.4% and 3.5% on 2019 levels, while registrations in Africa, Asia and Oceania in 2025 have exceeded the figures for 2019.
On the production side Germany accounted for more than one fifth (21%) of total registrations, followed by Spain (12%) and Czechia (8%).
China moved to fifth position in 2025, up from ninth in 2024, driven by a 77% increase in imports.
“China’s growing influence in the European automotive market is reflected in the numbers. The increasing presence of vehicles produced in China on the continent is not only due to the continued rise of Chinese brands but also reflects registrations of European models produced in China, such as the Mini Cooper, Dacia Spring and Cupra Tavascan,” said Daniele Ministeri, senior consultant at JATO Dynamics.
