On January 27th local time, the European Automobile Manufacturers Association (ACEA) released data showing that in December 2025, in the EU's passenger vehicle market, the sales of pure electric vehicles soared by 51% year-on-year to 217,898 units, surpassing gasoline vehicles (216,492 units) for the first time, with a market share reaching 22.6%. 

 

■The transition to electrification is irreversible. 

 

According to the statistics of ACEA over the past two years, as the sales of hybrid electric vehicles, pure electric vehicles and plug-in hybrid vehicles have increased, while the sales of gasoline vehicles and diesel vehicles have declined, the market landscape of passenger vehicles in the European Union has gradually changed. 
Taking the latest December data as an example, the total sales volume of passenger vehicles in the European Union was 963,319 units, with a year-on-year growth of 5.3%. Among them, the sales volumes of hybrid electric vehicles, pure electric vehicles, and plug-in hybrid vehicles were 324,799 units, 217,898 units, and 102,914 units respectively, with year-on-year growth rates of 5.8%, 51%, and 36.7% respectively. Together, they accounted for 67% of the total sales volume in the European Union, higher than 57.8% in December 2024. If only pure electric vehicles and plug-in hybrid vehicles are considered, the market share of EU electric vehicles in that month was 33.3%. 

 

From the overall perspective of the year, in 2025, the total sales volume of passenger vehicles in the European Union was 10.82 million units, with a slight year-on-year increase of 1.8%. Among them, the sales volumes of hybrid electric vehicles, pure electric vehicles, and plug-in hybrid vehicles were 3.733 million units, 1.88 million units, and 1.016 million units respectively, with year-on-year growth rates of 13.7%, 30%, and 33.4% respectively. In contrast, the sales volumes of gasoline vehicles and diesel vehicles were 2.88 million units and 960,000 units respectively, with year-on-year declines of 18.7% and 24.2%. 

 

It can be seen that in the EU, although some traditional car manufacturers have been wavering in their attitude towards the transition to pure electric vehicles, the European Commission also announced in December 2025 that it would withdraw the ban on fuel vehicle sales in 2035. However, from the market performance, the shift towards electrification has become an irreversible core trend. 

 

It is worth noting that if the scope is expanded to the entire European passenger car market, which includes the European Union, the United Kingdom, and the European Free Trade Association (Switzerland, Norway, and Iceland), then as previously stated in November 2025, the sales of pure electric vehicles (253,768 units) had already surpassed those of gasoline vehicles (249,653 units), ranking as the second-largest vehicle category in the European market. Looking at the entire year, the sales of passenger cars in the entire European market were 13.27 million units, with a year-on-year growth of 2.4%. Among them, the sales of pure electric vehicles reached 2.585 million units, and the sales of plug-in hybrid vehicles reached 1.273 million units, with a combined market share of 29%. 

 

In 2025, the growth in the sales of pure electric vehicles in the European market was partly attributed to the increased availability of new vehicles. As major automakers such as Volkswagen Group, Renault, and Changan-Everest successively launched affordable pure electric models priced at approximately 20,000 to 30,000 euros, the market demand was effectively stimulated. 

 

■ Rapid penetration of Chinese brands 

 

From the perspective of automakers, in the entire European passenger car market for the entire year of 2025, among the 18 mainstream listed automakers as reported by ACEA, Chinese automakers remained at two: SAIC Group and BYD. Among them, SAIC Group sold 305,700 vehicles, with a year-on-year growth of 24.9%; BYD sold 188,000 vehicles, a staggering 269% increase compared to 51,000 in 2024, both outperforming the overall market growth rate of 2.4%. In contrast, Tesla sold 239,000 vehicles, a year-on-year decline of 26.9%. 

 

In terms of scale, the top four players in the European market in 2025 will still be: Volkswagen Group, Stellantis, Renault Group, and Hyundai Motor Group. Meanwhile, BMW Group has replaced Toyota to rank fifth. 

 

In terms of the main markets, the annual sales of passenger vehicles in Germany increased by 1.4% year-on-year, reaching approximately 2.86 million units, indicating a slight recovery in the market. Among them, the electric vehicle segment showed a significant recovery after experiencing a trough in 2024, with pure electric vehicles increasing by 43.2% to 545,000 units. 

 

From the perspective of enterprises, data from the German Federal Motor Vehicle Administration shows that in 2025, BYD's sales in Germany increased by 7 times, reaching 23,300 vehicles. In contrast, Tesla's sales dropped by nearly half, approximately 19,000 vehicles. Moreover, Germany recently announced the resumption of a 3 billion euro subsidy policy for electric vehicles, which will be available to all automakers. This is undoubtedly good news for Chinese automakers. 

 

Looking at the UK, the annual sales volume increased by 3.5% to 2.02 million units, surpassing 2 million units for the first time since the outbreak of the pandemic in 2020. The growth in demand for electric vehicles has become an important factor driving the recovery of the UK automotive market. Especially, the presence of Chinese brands has significantly increased. According to data from the Society of Motor Manufacturers and Traders (SMMT), in December 2025, MG, BYD and Chery all entered the top ten of the best-selling brands list, with MG ranking second. 

 

Bloomberg Industry Research analyst Gillian Davis said that driven by new subsidy policies and the launch of multiple new-generation models, European car sales are expected to continue to grow in 2026. Chinese brands "are likely to continue to expand their market share, especially in the UK market." 

 

Spain is also worth mentioning. Its total sales volume increased by 12.9% year-on-year, reaching approximately 11.5 million units. It has exceeded one million units for two consecutive years, reaching a new high since the pandemic. One of the reasons is that the Spanish government resumed subsidies for electric vehicles in 2025, which drove up the sales of electric vehicles. Hybrid gasoline-electric vehicles also gained popularity due to their low barriers and fuel consumption advantages. Car manufacturers have intensively launched electric and hybrid models. Chinese automotive brands such as BYD, MG, and Chery have achieved rapid penetration in Spain. 

 

Originally published on China Automobile News website on January 29, 2025