New figures confirm 2025 marked a fundamental change for Europe’s automotive sector. For the first time, vehicles powered solely by petrol or diesel engines have fallen into the minority among new car registrations in the European Union.
Data from the European Automobile Manufacturers’ Association (ACEA), reviewed by Techgage, shows from January to October 2025, electrified vehicles—encompassing hybrids, plug-in hybrids, and battery-electric models—collectively accounted for more than 60% of the new car market. Petrol and diesel variants, once dominant, made up just 36.6% of new EU registrations.
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Hybrid models were the most popular choice, securing a 34.6% market share. Battery-electric vehicles followed with 16.4%, and plug-in hybrids held 9.1%. The share of petrol engines declined to 27.4% of the market, while diesel fell to 9.2%. This represents a stark contrast from a decade ago, when conventional engines powered more than nine out of every ten new cars sold in the region.
The shift has been propelled by stringent EU emissions regulations, the approaching 2035 deadline for ending new combustion engine sales, and growing consumer interest in vehicles with lower running costs. The expansion of charging infrastructure has also improved the practicality of fully electric options.
Market stability in Europe during 2025 contrasted with other major regions. While the United States saw a softening in electric vehicle demand and Japan recorded modest growth, Europe’s transition maintained momentum. Germany, for instance, reported a significant rise in battery-electric sales despite having ended purchase incentives in 2023.
Hybrids have been widely adopted as a transition technology, balancing efficiency gains without dependence on public charging. Meanwhile, combustion-engine vehicles face increasing pressure from urban low-emission zones, volatile fuel prices, and higher relative maintenance costs.
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Looking ahead to 2026, analysts expect battery-electric market share to grow further, potentially reaching 18–20%, driven by new, more affordable models from European and Chinese manufacturers. Hybrids are likely to remain the leading powertrain in the near term, while diesel’s share is projected to decline below 7%.
For South African observers, Europe’s accelerated transition signals the direction of global automotive investment and underscores the rising competitive pressure from Chinese electric vehicle brands, which are increasingly active in international markets.
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Source: Techgaged
