European Car Sales Continue to Rise as Hybrid Vehicles Lead the Market

European Car Market on the Rise

European car sales are accelerating again, marking the fifth consecutive month of growth across the European Union. According to the latest figures from the European Automobile Manufacturers’ Association (ACEA), car registrations rose by 2.1% in November 2025, with nearly 887,500 new vehicles sold across member countries.

This steady growth reflects renewed consumer confidence, the popularity of hybrid and electric vehicles, and improving supply chains — a notable turnaround after years of pandemic-related disruptions and chip shortages.

From January to November, total EU car sales reached 9.86 million units, representing a 1.4% year‑on‑year increase.

Hybrid Vehicles Dominate European Roads

Hybrid cars continue to lead the market, combining efficiency, performance, and affordability. In 2025, they accounted for 34.6% of all new car sales in Europe — roughly 3.41 million vehicles, up 14.5% compared to last year.

Growth has been particularly strong in key markets:

Spain: +26%
France: +24.2%
Germany: +8.7%
Italy: +7.9%

Rapid Growth of Plug‑in Hybrids

Plug‑in hybrid vehicles (PHEVs) also saw impressive performance, grabbing 9.3% of the market, up from 7.1% a year earlier. This segment is booming thanks to flexible driving options and expanding charging infrastructure.

Spain: +113%
Italy: +80.6%
Germany: +62.7%

Electric Vehicles Gain Ground

Fully electric cars aren’t far behind. They now represent 16.9% of all sales (up from 13.4% last year), with 1.66 million units sold in the first eleven months — a rise of 27.6%. Continued EV investment across Europe, coupled with more affordable models, is driving this momentum.

Meanwhile, petrol and diesel vehicles continue to decline, falling to 27% and 9% of the market respectively.

Volkswagen Extends Its Market Dominance

The Volkswagen Group remains the undisputed leader in the European car market, holding a commanding 27.7% share. The German automotive giant sold 2.73 million vehicles between January and November, up 5% year‑on‑year.

Stellantis and Renault Hold Steady

Stellantis, which includes brands such as Peugeot, Citroën, Fiat, and Jeep, came in second with 15.6% market share, although total sales dipped slightly by 5.5% over the first eleven months of 2025.
Renault performed strongly, increasing sales by 6.5% to 1.12 million vehicles, securing 11.4% of the market.

Tesla and BYD See Contrasting Fortunes

While Tesla experienced a sharp 38.8% decline, selling around 129,000 vehicles, BYD — the Chinese electric carmaker — has gone from strength to strength. BYD’s European momentum continues with a remarkable 221.8% surge in November sales, reaching over 21,000 units and capturing 2% of the EU market.

BYD’s rapid growth underscores the growing presence of Chinese manufacturers in Europe’s evolving EV landscape.

What Lies Ahead for 2026?

As Europe’s automotive industry transitions toward sustainability, hybrid and electric vehicles will remain at the heart of growth. Although regulators recently delayed the commitment to 100% electric new car sales by 2035, the industry continues to electrify at pace.

Expect 2026 to bring: