Electric Vehicle Sales Overtake Petrol Cars in the EU for the First Time

Electric Vehicle Sales Overtake Petrol Cars in the EU for the First Time

EV adoption hits a milestone as European car market shifts towards electric power

Sales of fully electric cars have overtaken petrol vehicles in the European Union for the first time, marking a major turning point in the region’s automotive market. New data shows electric vehicles (EVs) are gaining momentum despite softer emissions rules and intensifying competition from Chinese manufacturers.

EV Sales Pass Petrol Cars in December

According to figures from ACEA, registrations of battery-electric vehicles exceeded those of petrol cars across the EU in December. The same milestone was also reached across the wider European market, which includes the UK and Norway.

Car registrations across Europe have now risen for six consecutive months, highlighting a steady recovery in demand even though overall volumes remain below pre-pandemic levels.

Electric Cars Gain Ground Despite Policy Changes

The milestone comes at an interesting time for the industry. In December, the EU proposed relaxing emissions rules, including plans to abandon the effective 2035 ban on combustion-engine vehicles. The move followed pressure from carmakers facing:

• Rising competition from Chinese brands
• Potential US import tariffs
• Ongoing challenges in making EVs profitable

Despite this shift, analysts and industry experts still expect electric vehicles to continue increasing their market share across Europe.

Why EV Adoption Is Still Growing

Industry leaders say European manufacturers are adapting quickly. According to E-Mobility Europe, carmakers are rolling out more affordable EV models, while individual countries are introducing fresh incentive schemes to encourage adoption.

Chris Heron, Secretary General of E-Mobility Europe, said consumer demand remains strong and expects EV sales to continue growing through 2026, supported by better pricing and wider model availability.

Winners and Losers Among Carmakers

December’s data shows mixed fortunes across the industry:

• Volkswagen registrations rose 10.2%
• Stellantis sales increased 4.5%
• Renault saw registrations fall 2.2%

Among EV-focused brands, the contrast was even sharper:

• Tesla registrations dropped 20.2%
• BYD surged 229.7%

The figures underline the growing influence of Chinese manufacturers such as BYD, Changan and Geely in the European market.

Total Car Sales Continue to Recover

Overall car registrations across the EU, the UK and the European Free Trade Association rose 7.6% in December to around 1.2 million vehicles. For the whole of 2025, sales increased 2.4% to 13.3 million cars, the highest level in five years.

Within the EU alone, sales climbed 5.8% in December to nearly one million vehicles and rose 1.8% to 10.8 million for the year.

Electric and hybrid models dominated new registrations in December:

• Battery-electric vehicles: up 51%
• Plug-in hybrids: up 36.7%
• Hybrid electric cars: up 5.8%

Together, these accounted for 67% of all EU registrations.

Is This the Tipping Point?

Independent analyst Matthias Schmidt cautioned that some of the decline in petrol sales reflects vehicles being reclassified as mild hybrids, which offer only limited emissions benefits.

He believes it could still take around five years before fully electric cars genuinely overtake combustion-engine vehicles across the region. Even so, he described the latest data as an important step in that direction.

Outlook

Electric vehicles have crossed a symbolic threshold in Europe. While challenges remain around affordability, infrastructure and profitability, the direction of travel is clear. EVs are becoming a central part of the European car market, and their growing share looks set to continue through 2026 and beyond.

Sources: (Investing.com, Reuters.com)