The European electric vehicle (EV) market is experiencing significant growth, despite a downturn in the overall new car registrations. According to the European Automobile Manufacturers' Association (Acea), new car registrations in the EU dropped by 3.4% in February, yet EV registrations surged by 24%. This rise in EV popularity is particularly noteworthy given Tesla's substantial sales decline.
Tesla, once a leader in the electric vehicle sector, saw its sales in Europe plummet by almost 50% in the first two months of 2025, with registrations dropping to 19,046 vehicles. In Germany, traditionally a strong market for Tesla, sales fell by a staggering 76%. Factors contributing to Tesla's decline include increased competition from traditional and Chinese manufacturers and controversy surrounding CEO Elon Musk's political affiliations and actions.
Despite Tesla's struggles, the market for electric vehicles is thriving. The market share of EVs rose from 12% to 15.4% year-on-year. This growth is driven by consumer interest and regulatory incentives, although some experts warn that the EU's proposed extension of CO2 reduction targets could reduce the immediate pressure on automakers to boost EV sales.
Hybrid vehicles are also gaining traction, with registrations increasing by 18.7%, making them the largest segment with a 35.2% market share. In contrast, sales of traditional combustion engine vehicles are declining sharply, with petrol and diesel car registrations dropping by 20.5% and 28% respectively.
The evolving landscape of the automotive industry highlights a shift towards sustainable mobility, with electric and hybrid vehicles poised to dominate the future market.
