EU car registrations fell by 2.6% in January 2025, report finds

New car registrations in the European Union fell by 2.6% in January 2025 compared to the same period last year, according to the latest report from the European Automobile Manufacturers’ Association (ACEA).

The decline was particularly evident in key markets, with France recording a 6.2% drop, Italy down by 5.8%, and Germany seeing a 2.8% decrease. Spain, however, bucked the trend with a 5.3% increase in new car registrations.

Despite the overall decline in car registrations, the market for electric and hybrid vehicles showed notable growth.

Battery-electric vehicles (BEVs) accounted for 15% of new registrations, up from 10.9% in January 2024.

Hybrid-electric vehicles (HEVs) saw even stronger growth, capturing a 34.9% market share and maintaining their position as the most preferred choice among EU car buyers.

Meanwhile, petrol and diesel vehicles continued to lose ground, making up just 39.4% of total registrations, down from 48.7% a year earlier.

Sales of BEVs rose by 34% year-on-year to 124,341 units, with three of the four largest EU markets reporting strong growth: Germany saw a 53.5% increase, Belgium rose by 37.2%, and the Netherlands recorded a 28.2% increase. France, however, experienced a slight decline of 0.5% in BEV sales.

Hybrid-electric vehicles also recorded strong growth, with registrations rising by 18.4%.

The surge was primarily driven by a 52.2% increase in France, a 23.5% rise in Spain, a 13.7% growth in Germany, and a 10.6% uptick in Italy.

This translated to 290,014 HEVs registered in January 2025, securing a 34.9% share of the market.

Conversely, plug-in hybrid electric vehicles (PHEVs) saw a decline, with registrations dropping by 8.5% to 61,406 units.

The decrease was largely attributed to a sharp 66.6% decline in Belgium and a 54% drop in France, bringing the PHEV market share to 7.4%.

Petrol vehicle sales continued to decline, dropping by 18.9% compared to January 2024. France saw the sharpest decrease at 28.2%, followed by Germany with a 23.7% decline, Italy with a 17% drop, and Spain with an 11.1% decrease.

A total of 244,763 petrol cars were registered in January 2025, reducing petrol’s market share to 29.4%, down from 35.4% a year earlier.

Diesel car sales also fell sharply, with a 27% decline, bringing their market share down to 10%.