European car sales showed signs of recovery in March 2025, climbing 2.8% after February’s disappointing 2.5% decline. The turnaround, while modest in overall registrations with just a 0.2% year-on-year increase across the EU, EFTA, and UK markets, represents a considerable shift in consumer preferences toward electrified powertrains. This recovery was primarily fueled by surging electric vehicle sales, which effectively counterbalanced continuing weakness in the combustion engine segment.
Battery-electric vehicles achieved impressive momentum in March, with registrations jumping 23% to 240,891 units—nearly setting a new monthly record. BEVs now command 16.9% of the European market, representing a substantial 2.7 percentage point increase compared to March 2024. I’ve observed these growth patterns accelerating throughout early 2025, with Q1 BEV sales reaching an unprecedented 570,943 units, up 28% year-on-year. This impressive growth aligns with projections that global EV sales will reach 17 million units by 2024.
The contrast between powertrain types couldn’t be starker. Traditional gasoline and diesel vehicles continued their downward trajectory, with sales contracting considerably. Without the strong performance of BEVs and plug-in hybrids, the overall market would have almost certainly posted negative growth. Legacy manufacturers have responded by rapidly expanding their electrified offerings, recognizing the shifting demand landscape. German manufacturers maintained strong diesel sales with Mercedes-Benz diesels accounting for 38% of the brand’s total registrations.
Volkswagen maintained its dominance as Europe’s largest automaker and leading electric brand through February, though the Dacia Sandero remained the continent’s best-selling individual model. Tesla’s Model Y continues to lead the EV segment despite experiencing sales volatility in February. Despite remaining the top-selling electric vehicle, the Tesla Model Y faced a 49% drop in Q1 compared to the previous year. Chinese manufacturers have remarkably increased their European presence, particularly within the electric vehicle space, contributing meaningfully to March’s positive results.
The electric shift is gaining momentum, with EVs now accounting for nearly 17% of Q1 registrations across Europe, up 3.7 percentage points from last year. Regional performance varied considerably, with strongest growth occurring in markets offering robust incentives and well-developed charging networks.
This electrification trend appears set to continue through 2025, driven by expanding model availability and increasingly favorable consumer sentiment toward battery-powered transportation.
