Electric vehicle registrations in the European Union surpassed those of petrol-only cars for the first time in December, marking a symbolic milestone in the region’s auto market as electrified vehicles continued to gain share, according to data from the European Automobile Manufacturers’ Association (ACEA). Fully electric cars accounted for 22.6% of new registrations during the month, narrowly overtaking petrol vehicles at 22.5%, while hybrids remained the largest category overall.
ACEA data show that electrified vehicles—including battery electric, plug-in hybrid and hybrid electric models—represented 67% of all new car registrations in the bloc in December. Gasoline-electric hybrids, including plug-in hybrids capable of limited electric-only driving, led the market with a 44% share. Vehicle registrations are widely used as a proxy for sales.
The figures underscore the EU’s gradual transition toward electrified powertrains, even as policymakers move to soften emissions rules that would allow internal combustion engine vehicles to remain on the road longer. In December, the European Commission said it plans to roll back an effective 2035 ban on combustion-engine cars, responding to pressure from automakers grappling with competition from Chinese manufacturers, US import tariffs and profitability challenges in electric vehicle production.
Independent automotive analyst Matthias Schmidt said the decline in petrol-only registrations partly reflects the reclassification of some models as mild hybrids. “It will still take around half a decade before pure electric cars genuinely overtake combustion-engine models across the region, but this is nonetheless a start,” Schmidt said, noting that mild hybrids still rely primarily on petrol engines and deliver limited emissions reductions.
Across the broader European market—including the EU, Britain and the European Free Trade Association—car sales posted a sixth consecutive month of year-on-year growth in December. Total registrations rose 7.6% to 1.2 million vehicles during the month and increased 2.4% year on year to 13.3 million units in 2025, the highest annual volume in five years, though still below pre-pandemic levels. Within the EU alone, sales rose 5.8% in December to nearly one million vehicles and climbed 1.8% to 10.8 million units for the full year.
Competition in the European auto market is intensifying as Chinese manufacturers expand their footprint. Brands such as BYD, Changan and Geely are increasing pressure on established players including Volkswagen and BMW, which are accelerating the rollout of new electric models. In December, registrations at Volkswagen and Stellantis rose 10.2% and 4.5%, respectively, while Renault posted a 2.2% decline.
Performance among electric vehicle makers diverged sharply. Tesla’s registrations in Europe fell 20.2% in December, while BYD’s surged 229.7%, highlighting the growing impact of Chinese brands, particularly in entry-level and mid-range electric segments.
Industry groups say consumer acceptance of electric vehicles is improving, supported by broader model availability and national incentive programs. Chris Heron, secretary general of E-Mobility Europe, said European manufacturers are adapting by introducing more affordable electric models. “We are seeing consumer buy-in to this,” Heron said. “We are confident that sales across Europe will continue to grow in 2026.”
The December figures also highlight the role of hybrids as a transitional technology. While fully electric vehicles reached a monthly milestone by overtaking petrol cars, hybrids continue to dominate registrations, reflecting consumer demand for lower emissions without full reliance on charging infrastructure.
Battery electric vehicle registrations in the EU jumped 51% in December from a year earlier. Plug-in hybrid registrations rose 36.7%, while hybrid electric vehicle registrations increased 5.8%. Combined, these categories accounted for more than two-thirds of all new vehicles registered in the bloc during the month.
ACEA data show that electrification trends vary significantly across countries, shaped by differences in incentives, charging infrastructure and income levels. Northern and Western Europe continue to lead adoption, while growth in Southern and Eastern Europe remains slower.
Despite regulatory uncertainty and ongoing debate over emissions targets, analysts expect electric vehicles to continue gaining market share. The December crossover between electric and petrol registrations is widely seen as an early signal of longer-term structural change, rather than a definitive turning point.
By contrast, the US electric vehicle market has faced headwinds. According to Kelley Blue Book, EV buyers paid an average of US$58,034 in December 2025, as automakers completed their first full quarter without the US$7,500 federal tax credit for eligible plug-in vehicles, which expired in September. Average transaction prices rose 2.4% from November despite incentives that reached roughly 18% of sticker prices, or more than US$10,000 per vehicle.
US EV sales fell sharply following the credit’s expiration, prompting automakers including Ford, General Motors and Stellantis to scale back electric vehicle investments and place greater emphasis on hybrids and alternative powertrain strategies.
