Demand for EVs in Europe:Market Shifts and Growth Trends by Country in 2025

Are EVs Really Replacing ICE Cars?

Electric vehicles are steadily transforming Europe’s roads, but not at the same pace everywhere. In Norway, the shift is nearly complete: 90.8% of all new cars registered in the first nine months of 2025 were electric, leaving petrol and diesel models in sharp decline, down more than 50% and 37%, respectively. The rest of Europe is catching up fast. In Lithuania, Latvia, and Iceland, EV share has surged compared with last year, up 41.5%, 35.7%, and 30.3%, showing how even smaller markets are accelerating toward an electric future.

However, this replacement effect is far from uniform. Despite Latvia’s electric vehicle share nearly doubling, petrol and diesel models still dominate the market, accounting for 79.42% of all new car registrations in 2025. The contrast is even starker in Bulgaria, where 90.63% of new vehicles still run on conventional fuels, and petrol registrations have actually risen by 10.83% year-on-year. Factors such as income levels, charging infrastructure, and vehicle affordability continue to shape adoption rates, as consumers in lower-income markets remain more sensitive to upfront costs and limited charging networks.

In Germany, Europe’s largest auto market, BEV sales rose 38.3%, but the overall EV share stagnated at 28.4% of all new car registrations. The end of certain subsidies and price cuts from Chinese automakers reshaped demand: PHEVs rose sharply (+63.9%), suggesting consumers are hedging between affordability and range anxiety. France, meanwhile, saw an 8.6% drop in total EV registrations, driven by a collapse in plug-in hybrid sales (-26.8%), as its new ‘green bonus’ rules excluded many imported EVs. Belgium also experienced a decline (-9.8%) despite still-high EV penetration (nearly 43%), hinting at a post-subsidy cooldown. 

Poland stands out as a potential turning point in Central Europe. BEV registrations more than doubled (+106.7%), with plug-in hybrids following closely (+97%), pushing the country’s EV share to 11%, nearly twice last year’s level. Similarly, Czechia saw its EV market grow 55% overall, with plug-in hybrids in the lead (+78.6%). These shifts suggest that company fleets and EU incentives are beginning to filter into mid-income markets.

Largest Sales of EVs in 2025 (Jan-Sep)

Countries with the largest number of EV sales in 2025 so far

Europe’s electric vehicle market is gaining momentum in 2025, with sales accelerating across both large and emerging markets. Total BEV registrations rose 25.4% year-on-year to nearly 1.8 million units, while plug-in hybrid (PHEV) sales grew even faster at 32%, reaching over 918,527 units.

Major markets are driving this expansion. Germany, for example, sold 382,202 BEVs and 217,760 PHEVs in the first nine months of 2025, marking a 38.3% increase in BEVs and a 63.9% surge in PHEVs, highlighting the growing popularity of hybrid options alongside full electrics. The UK followed closely, registering 349,414 BEVs and 172,639 PHEVs, with growth of 29.5% for BEVs and 38.2% for PHEVs, demonstrating strong market demand even as incentives evolve.

Southern Europe is starting to catch up in the EV transition. Spain nearly doubled BEV sales to 72,062 and more than doubled PHEVs to 86,681, while Italy also posted strong growth (up 26.6% year-over-year to 61,055 BEVs, and up 72.6% to 68,871 PHEVs), driven by rising consumer interest and improving infrastructure. In contrast, France saw PHEV sales drop 26.8% to 72,537, and Belgium’s PHEVs fell 47.3% to 29,989, highlighting a fragmented market where hybrid adoption is highly sensitive to incentives and policy changes.

Countries with the Most EV Sales per Capita

New BEV and PHEV registrations per 100,000 citizens

The BEV-PHEV Divide: What Europe’s EV Mix Reveals About Wealth, Policy, and Full Electrification Readiness

The ratio of battery electric vehicles (BEVs) to plug-in hybrids (PHEVs) is a strong indicator of a country’s EV maturity. A higher BEV share reflects advanced infrastructure, strong zero-emission policies, and higher incomes, while PHEV dominance points to transitional markets with weaker charging networks or affordability barriers. In essence, this balance captures both economic readiness and policy commitment to full electrification.

Among Europe’s wealthiest nations, Norway, Luxembourg, Denmark, Switzerland, and Belgium, BEVs now dominate the market, a pattern rooted in high disposable incomes, well-funded incentive schemes, and dense charging coverage. Together, these factors illustrate how economic strength and policy consistency translate into faster, deeper decarbonisation of road transport.

PHEV-heavy markets such as Ireland, Spain, and Italy highlight uneven infrastructure development and lingering consumer hesitation toward full electrification. Sweden stands out as a high-income exception, where PHEV adoption (510 per 100,000) nearly matches BEV uptake (678 per 100,000), a balance shaped by generous company-car incentives and the practical advantages hybrids offer in colder climates.

In Southern and Eastern Europe, PHEVs are often viewed as a practical middle ground between traditional and fully electric vehicles. BEV adoption remains limited by price sensitivity, slower infrastructure rollout, and uneven policy support, underscoring the region’s more cautious and affordability-driven transition toward electrification.

Europe New Car Sales by Type in 2025

Hybrids Claim Largest Slice of New Car Sales

Europe’s new car market is being reshaped by the surge of electrification. Hybrid electric vehicles (HEVs) claim the top spot, with 3.45 million units sold between January and September of 2025, capturing 34.8% of the market. Fully electric vehicles follow closely with 2.72 million registrations (27.3%), edging past conventional petrol cars, which accounted for 2.70 million units (27.2%). Diesel continues its long-term retreat, representing just 8% of sales, while alternative fuels remain niche at 2.6%.

These figures highlight a profound transformation in European motoring. Consumers are increasingly gravitating toward electrified options, with hybrids offering a pragmatic bridge between traditional engines and full electrification. Meanwhile, battery-electric and plug-in electric vehicles are rapidly encroaching on petrol’s territory, signalling that the continent is accelerating toward a future dominated by clean, sustainable mobility.

Countries’ New Car Registrations by Type (Jan-Sep 2025)

Europe’s Uneven Road to Electrification: From Norway’s EV Dominance to the Hybrid Hurdle in the East

Norway remains the benchmark for full electrification, a model of policy consistency and consumer confidence. The Netherlands, Denmark, and Sweden have also crossed a critical threshold where electric models now outpace both hybrids and combustion engines, while smaller, affluent markets such as Luxembourg and Iceland approach near-parity between EVs and traditional vehicles.

In contrast, large economies like Germany, the UK, and France remain in transition. The UK has already seen EV sales surpass ICE vehicles, whereas France still leans on hybrids as a cautious, policy-led bridge. Austria, Portugal, and Switzerland mirror this balance, signaling steady but incomplete progress.

Further south and east, the shift is more gradual. In markets such as Italy, Spain, Greece, and Hungary, hybrids dominate as consumers balance affordability with limited charging options. Central European countries like Poland and Czechia follow a similar trajectory, relying on HEVs as an interim step.

Countries like Bulgaria, Croatia, Slovakia, and Lithuania remain largely ICE-dependent, with EVs still below 10% of registrations. Here, electrification advances at a measured pace, constrained by income disparities, infrastructure gaps, and weaker policy support.

The Car Models Driving the European EV Revolution

As Europe’s electric vehicle market expands and charging technology improves, certain models have established a reputation for reliability, capturing the lion’s share of sales.

Tesla has been on the decline in Europe for over a year, due to intense competition from European and Chinese automakers, reports of inconsistent build quality, and the political stances of its founder and CEO, Elon Musk. Despite these challenges, the Tesla Model Y has emerged as the continent’s top-selling electric vehicle in 2025, with nearly 117,000 new units registered between January and October. Remarkably, Tesla set a new record for car sales in Norway, selling 28,606 vehicles from January to November, more than any other manufacturer, EV or otherwise, has ever sold in a single year in the country.

As one of the Volkswagen Group’s defining strengths, its multibrand strategy continues to pay off in 2025, with four models – the Škoda Elroq, VW ID.4, VW ID.3, and Škoda Enyaq – all ranking among Europe’s top ten best-selling EVs. The group’s diverse portfolio spans everything from compact city cars to mid-size SUVs, enabling it to target multiple market segments while capitalising on strong brand recognition and an extensive dealership network across the continent.

The broader BEV segment reflects a shift toward more compact, affordable electric cars. Models like the Renault 5, Kia EV3, Cupra Born, and VW ID.3 highlight rising consumer appetite for urban-oriented EVs that balance price, range, and efficiency. Meanwhile, premium offerings such as the Audi Q4 e-Tron, Audi Q6 e-Tron, BMW iX1, and BMW i4 continue to attract drivers seeking higher-end features and performance, keeping luxury EV demand resilient even as subsidies fluctuate.

Plug-in hybrids remain an important bridge technology in markets where charging infrastructure is uneven or affordability concerns persist. The BYD Seal U leads PHEV sales with more than 56,000 units, demonstrating the growing pressure Chinese manufacturers are placing on their European rivals within the region’s electrification landscape. Strong performances from the Volvo XC60 PHEV, VW Tiguan PHEV, Ford Kuga PHEV, and Toyota C-HR PHEV further highlight that consumers continue to prioritise flexibility and lower upfront costs, particularly in countries outside the Nordic region, where fully electric adoption is progressing at a slower pace.

To analyse global electric vehicle sales, we used new car registration data published by the European Automobile Manufacturers’ Association (ACEA) for the period January-September 2024 and 2025. Additional information on the electric models (BEV and PHEV) sold across Europe was sourced from CleanTechnica.