ACEA market data: Electric drives slowly gain ground in the EU

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The European Automobile Manufacturers' Association (ACEA), which represents the interests of the car industry in Europe, publishes important market data on the development of sales. The latest figures show a comprehensive and constantly increasing shift towards alternative drive systems. The fastest-growing segment is hybrids, including those with an externally rechargeable battery. Electric cars are growing rapidly, but so far not fast enough to achieve the European targets for electromobility. The figures from the EU are followed by an analysis of the association's global development.

Until August 2025, new car registrations in the EU stagnated compared to the same period last year but grew for the second month in a row. At 15.8 percent, battery electric cars continued to fall short of the share required for the planned growth in e-mobility. Nevertheless, it has increased from a 12.6 percent share in the previous year. Hybrids remained the most popular alternative drive type with a market share of 34.7  percent. As a result, sales of cars with combustion engines fell year-on-year from 47.6 to 37.5 percent.

More than one million new e-car registrations

In the first eight months of 2025, 1,132,603 new electric cars were registered. Three of the four largest markets in the EU, which together account for 62 percent of electric car registrations, recorded growth: Germany with 39.22, Belgium with 14.4, and the Netherlands with 5.1 percent. France, on the other hand, recorded a decline of two percent, despite an increase of 29.3 percent in August 2025. The ACEA does not comment on this restraint, but it could be related to the political uncertainty of recent weeks due to a difficult government formation.

Hybrid registrations have risen to 2,485,069 units since the beginning of the year, driven by growth in the four largest markets: France with an increase of 30.5, Spain with 19.3, Germany with 10.1, and Italy with 49.9 percent growth. Hybrids currently have a 34.7 percent market share in the EU.

Plug-in hybrids have achieved 631,783 sales since the beginning of the year, the key markets being Spain with 99.9 percent growth, Germany with 62.2 percent, and Italy with 62.6 percent. They now account for 8.8 percent of EU car registrations, compared to 6.9 in the previous year.

Strongest growth for plug-in hybrids

Compared to August 2024, ACEA recorded an increase of 30.2 percent for battery electric cars and 14.1 for hybrids, while plug-in hybrids recorded their sixth consecutive month of strong growth at 54.5 percent.

Since the beginning of 2025, registrations of cars with petrol engines have fallen by 19.7 percent in all major markets. In France, registrations slumped by 33.5 percent, followed by Germany with minus 25.2, Italy with minus 17.6, and Spain with minus 13.1 percent.

With 2,012,2,580 new cars registered, the market share for cars with petrol engines fell from 34.9 in the same period of the previous year to 28.1 percent. The diesel market was similarly affected, falling by 25.7 percent, bringing the market share down to 9.4 percent. This is already approaching the German market share of the early 1980s. The year-on-year decline is 16.3 percent for cars with petrol engines and 17.5 percent for cars with diesel engines.

China successfully subsidises

The ACEA's economic and market report provides data on vehicle sales, production, and trade in Europe and worldwide for the first half of 2025. As its gross domestic product will grow by around 1.1  percent in 2025 despite trade conflicts and US tariffs, the EU's economic outlook is viewed with cautious optimism. Overall inflation is expected to fall to 2.3 percent in 2025 and 1.9  percent in 2026, just below the European Central Bank's two percent target. In addition, the unemployment rate is expected to reach a historic low of 5.7  percent in 2026.

Global car sales rose by five percent to 37.4 million in the first half of 2025, led by China with twelve ]percent, thanks to government scrappage and e-car bonuses. North America recorded modest growth of 2.5  percent, with the possibility of a slowdown due to erratic US policy. In Europe, registration figures fell by 2.4  percent and sales by 1.9  percent.

Germany produced 20  percent of the cars sold in the EU, followed by Spain, the Czech Republic, France, and Slovakia. Together, the manufacturers based in the EU supplied 74  percent of the market. Cars from China now account for six percent of EU sales.

CO₂ targets and tariffs as obstacles

Global car production rose by 3.5  percent to 37.7 million. Asia dominated with 60.1  percent of total production, while the EU accounted for 15.9. European production shrank by 2.6  percent, which the ACEA attributes to stricter CO₂ targets, high-energy costs, and tariffs, while China's production rose by 12.3  percent due to political support and export profits.

Two thirds of the cars produced in the EU were also sold in this economic area. Imports and exports in the European automotive industry fell by 3.3  percent each, further reducing the trade surplus. Imports from China rose, while exports there fell sharply by 42  percent. The EU exported 8.1  percent more to the UK and 13.6  percent less to the USA.

The ACEA represents the 16 major car, van, truck, and bus manufacturers in Europe: BMW Group, DAF Trucks, Daimler Truck, Ferrari, Ford of Europe, Honda Motor Europe, Hyundai Motor Europe, Iveco Group, JLR, Mercedes-Benz, Nissan, Renault Group, Stellantis, Toyota Motor Europe, Volkswagen Group, and Volvo Group.

(fpi)