Overview

• The EU new car market contracted by 1.9% in Q1 2025 compared to the same period in 2024, according to ACEA data.
• Battery electric vehicle registrations rose by 23.9%, achieving a 15.2% market share, while hybrids grew by 20.7% to dominate with 35.5% of sales.
• Tesla's EU registrations fell sharply by 45% year-on-year, continuing a downward trend exacerbated by reputational challenges and increased competition.
• Volkswagen saw a 5% increase in EU registrations, while BMW recorded a marginal 0.4% growth, and Mercedes-Benz experienced a 6.2% decline.
• Stricter EU CO₂ regulations and the end of subsidies in key markets are accelerating the shift to electrified vehicles but creating challenges for some automakers.