August M
Europe’s car market has reached a symbolic turning point as shifting consumer preferences, new competitors and regulatory uncertainty reshape the industry. Fresh data suggests a milestone moment, even as the long-term pace of change remains debated.
The shift comes amid growing pressure on traditional carmakers and policymakers alike.
Historic crossover
According to Reuters, sales of battery-electric cars overtook those of petrol vehicles in the European Union for the first time in December, based on registration data released by industry group ACEA.
Battery-electric models also surpassed petrol cars across the wider European market, which includes Britain and Norway. The milestone came as overall car sales in the region recorded a sixth consecutive month of year-on-year growth.
The figures emerged despite recent proposals by EU policymakers to loosen emissions rules.
Electrification surge
Electrified vehicles, including battery-electric, plug-in hybrid and hybrid electric cars, accounted for 67% of EU registrations in December, ACEA data showed.
Battery-electric registrations rose 51% compared with the same month a year earlier, while plug-in hybrids increased 36.7% and hybrid electric cars rose 5.8%.
Total EU car sales climbed 5.8% in December to nearly one million vehicles, while full-year sales rose 1.8% to 10.8 million.
Intensifying competition
The market shift is unfolding as competition from Chinese brands accelerates. Reuters reported that manufacturers such as BYD, Changan and Geely are rapidly expanding their presence in Europe.
At the same time, European carmakers including Volkswagen and BMW are rolling out new electric models in an effort to defend market share.
The pressure has been felt unevenly. December registrations rose 10.2% for Volkswagen and 4.5% for Stellantis, while Renault saw a 2.2% decline. Tesla’s registrations fell 20.2% in the month, while BYD’s surged 229.7%.
Policy headwinds
In December, the EU proposed abandoning an effective 2035 ban on combustion-engine cars, bowing to pressure from automakers facing Chinese competition, US import tariffs and challenges around EV profitability.
Even so, industry observers expect electric vehicles to keep gaining ground.
Chris Heron, secretary general of E-Mobility Europe, told Reuters that manufacturers are adapting by launching more affordable EVs and that new national incentive schemes are supporting demand.
Cautious outlook
Independent automotive analyst Matthias Schmidt said the drop in petrol sales 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,” he said.
Sources: Reuters, ACEA
