Topic: Europe

August saw a second consecutive month of growth for the EU new-car market, accompanied by a boost for battery-electric vehicle (BEV) registrations. However, looking at the bigger picture, is any cause for celebration premature? Autovista24 web editor James Roberts investigates the data.

A total of 677,785 new cars were delivered across the EU in August, according to the latest figures from ACEA. This equalled a 5.3% year-on-year increase for the region, and a second consecutive month of year-on-year growth, bolstered by 34,391 additional units.

However, spanning the first eight months of the 2025, year-on-year EU new-car registrations are down 0.1%. Between January and August, 7,168,847 new vehicles took to the bloc’s roads, a unit slide of 10,421 compared with the same period in 2024.

Of the 27 EU nations, 19 recorded growth. Amongst the major markets, Spain continued its upward trajectory in 2025. It registered a 17.2% year-on-year upswing, with 61,313 new vehicles reaching customers.

Germany saw a healthy 5% increase in August, whilst France, buoyed by new electric vehicle (EV) incentives, returned to growth with a 2.2% improvement in the month. However, consistent negative returns across the year-to-date meant that the French market remained 7.1% down on 2024 totals.

Despite notable increases in year-on-year registrations of battery-electric vehicles (BEVs) and plug-in hybrids (PHEVs), Italy saw a 2.7% slip in August. More generally, falling demand means that, as of the end of August, Italian new-car registrations are down 3.7% on 2024 totals.

Austria enjoyed a strong month with 21,452 new cars taking to the nation’s roads. This equated to a 25.3% increase, helping shore up a 10.7% gain in the year to date, largely propelled by electric vehicle (EV) demand.

For a second consecutive month, a Baltic state accounted for the largest percentage gain. This time, Lithuania saw a 52.4% surge in sales. Conversely, neighbouring Estonia continued in the doldrums with a 41.6% fall.

EU BEV bounce

August saw 120,797 new BEVs take to the EU’s roads, a 30.2% gain on a low baseline of 12 months previous. This in turn gave the powertrain a 17.8% monthly market share, a year-on-year upswing of 3.4 percentage points (pp).

Significantly, August’s gains underlined BEV’s largest monthly share of the overall EU market this year. This was, however, achieved with the fourth lowest absolute volume of the year to date.

Between January and August, BEV deliveries reached 1,132,603 across the EU, a 24.8% jump on the same period 12 months prior.

Relatively strong BEV performances in major EU markets helped drive uptake. Spain saw significant year-on-year gains with 7,032 new BEV units underlining a 160.8% year-on-year rise. Across the first eight months of 2025, BEV registrations in Spain are up an impressive 95%.

Government incentives, such as the MOVES III program, have been a major driver for the BEV adoption. First introduced in April 2021 and extended most recently in April 2025, this scheme has fuelled a significant surge in electrified vehicle sales.

Germany again accounted for the largest absolute BEV sales total in August, hitting 39,367. This amounted to a 45.7% year-on-year increase. Italy also registered impressive BEV growth at 27.3%. However, complexities within the domestic framework, including uncertainty over proposed incentives, are hindering further growth.

Significantly, France recorded BEV growth of 29.3% in August. However, the complex BEV landscape remains a drag on the overall market picture, and spanning the first eight months of 2025, it is down 2% year-on-year

Poland and Bulgaria’s BEV upswing

For a second consecutive month, Poland proved a breakout BEV adopter. Following on from triple-digit gains in July, the country saw 3,306 new BEVs leave dealerships. This was a 237.7% year-on-year increase.

BEV sales in the country have been aided by fresh state support measures. This includes the NaszEauto programme, which provides sizeable grants. Benefits such as scrappage rewards for retiring older internal-combustion engine (ICE) cars, and relief from certain vehicle taxes, are designed to make the switch appealing. These policies are laying the groundwork for sustained expansion of Poland’s EV market.

Bulgaria provided an intriguing market of contrasts in August. The country saw a significant percentage increase in BEV registrations, up 124.1% year on year, from 83 to 186.

Despite its small segment status, there are concrete reasons for the emerging trend. Across the first eight months of 2025, Bulgaria’s BEV uptake has increased 45.7% year on year from 993 units to 1,447.

Conversely, Bulgaria proved just one of five EU nations to see an increase in new petrol registrations in August, with a 21.6% year-on-year rise. Only six other nations registered an improved demand for new diesel vehicles.

BEVs are fully exempt from vehicle registration tax in Bulgaria, as well as ownership tax. On top of this, a five-year plan was announced in 2022 to upgrade the nation’s EV charging infrastructure. This involves the installation of 10,000 charging points, which could be a catalyst for further growth.

PHEV paradox

In August, the EU saw 70,545 PHEVs take to the region’s roads. This gave the powertrain a 54.5% year-on-year increase, capping an upturn in popularity established from March onwards.

August’s volume helped ensure a monthly market share of 10.4%, the highest of 2025 by 0.4pp. This, however, was achieved with the fifth lowest monthly sales total of the year.

Across the first eight months of 2025, PHEV totals hit 631,83 units, establishing a 27.2% year-on-year gain. This helped facilitate a market share of 8.8%, a year-on-year increase of 1.9pp. While this marks a high watermark for the year, it is just 1.4pp up from January’s figure of 7.4%.

In August, the EU’s major markets all stood out as popular places for PHEVs. Germany accounted for 23,973 newly registered vehicles, a year-on-year increase of 76.7%. Once again, Spain led the way with a 162.7% surge, whilst Italy saw a 94.7% boost.

However, France saw negative returns in the plug-in arena. PHEV deliveries amounted to 5,855 units, down 5% year on year. Across the EU’s biggest four markets, the country is the only one trending negatively in terms of PHEV registrations.

Belgium also saw a notable reduction in PHEV demand during August. Following a 9.4% year-on-year decline in BEV registrations, PHEVs dropped 22.4%, from 3,699 units to 2,870 registrations. This reflected a wider annual slump, which saw the Belgian new-car market fall 11% compared with the first eight months of 2024.

New plug-in market share high not enough

EV registrations, consisting of BEVs and PHEVs, carved out a monthly market share high of 28.2% in August. A combined weight of 191,342 deliveries helped ensure this, however despite the second lowest total volume of the year.

Therefore, the apparent high point is tempered by a wider state of inertia. Between January and August, total EU plug-in registrations accounted for a 24.6% market share. Since January’s 22.3% figure, this has only increased 2.3pp. Furthermore, this share is eclipsed by both ICE registrations and total electrified vehicle figures, which include BEV, PHEV, and hybrid powertrains.

Hybrids remain a winning compromise

Hybrids, including both mild and full versions, remained the EU’s most popular choice in August. The powertrain held the highest market share of 33.9%, with a 229,970-unit volume.

This trend is reflected across the first eight months of the year. Hybrid registrations amounted to 2,485,096 units, ensuring a 34.7% market share. This marks a 5pp upswing compared with 12 months prior.

More generally, hybrid popularity is driving the electrified market share in the EU. Adding the powertrain to BEV and PHEV registrations established a 62.2% hold of total new-car deliveries in August. This is a notable 5pp gain on January’s figure.

As of August, electrified powertrains command 59.3% of total delivery volumes in the EU. This is the highest of 2025, as well as 10.1pp up on 2024 totals.

In August, hybrids enjoyed year-on-year increases in most of the 27 EU member states. Only Denmark, Estonia, Finland, Ireland and the Netherlands recorded declines. The most significant fall came in the small volume market of Estonia at 45%, which witnessed declines across all powertrains.

The most notable adoption of hybrid power came in Romania during August. The nation saw a 72.7% year-on-year swing upwards. This crowns a 22.5% increase across the first eight months of the year, in the form of 48,288 vehicles.

Petrol and diesel down but not out

Combined petrol and diesel registrations continued to decline in the EU during August. However, the month’s 16.6% fall proved to be the second lowest after July’s 12.9% slide.

Both petrol and diesel succumbed to consistent double-digit drops in sales during August. Despite this, petrol clung on to the second highest powertrain share in the EU after hybrids, at 26.3%, down 6.7pp. And between January and August, petrol commanded a 28.1% market share, a drop of 6.8pp.

ICE registrations, encompassing petrol and diesel, saw a 21.3% fall across the first eight months of the year. Crucially, despite consistent and notable declines, the powertrain retained a 37.5% hold on the market. This was 21.8pp above combined electrified powertrains, and remained 12.9pp above plug-in registrations.

As long as new ICE models remain a popular new-car option, wider EU emissions targets will prove difficult to hit. This poses a concern for ACEA who stated that BEV uptake is ‘still below the pace needed at this stage of the transition.’

The EU new-car market rebounded in July, seemingly driven by electrified powertrains. But as the year-to-date figures fall, are cracks appearing? Autovista24 web editor James Roberts assesses the data.

A total of 914,680 new vehicles took to the EU’s roads in July, according to the latest figures from ACEA. This equalled a 7.4% year-on-year increase for the region.

Alongside April and May, July marked only the third month of growth in the EU so far this year. Therefore, year-to-date deliveries between January and July were down 0.7% when compared with the first seven months of 2024.

Of the 27 EU member states, 22 recorded new-car market growth in July. Focusing on the bloc’s major markets, Spain continued to impress. In total, 98,337 units were registered in the country, a 17.1% year-on-year upswing. Germany also recorded double-digit growth, with 264,802 registrations amounting to an 11.1% year-on-year increase.

The sluggish French new-car market saw a 7.7% decline, more severe than the 6.7% drop recorded in June. Italy saw a 5.1% fall in year-on-year registrations. However, this proved less severe than the 17.4% slump in the previous month.

More generally, the biggest growth was seen in Latvia. The country’s relatively small market enjoyed a 60.2% lift. Conversely, fellow Estonia emerged as the worst-performing market in July. It saw a 40.3% dive in registrations, with negative figures recorded across all powertrains.

EU PHEV momentum continues

Plug-in hybrids (PHEVs) saw notable success across the EU in July. 91,190 of these cars left regional dealerships, the second highest this year after June’s 94,178 total. So, PHEVs enjoyed a 56.9% year-on-year lift in July, carving out a 10% market share, a new comparative high.

Of the EU’s larger new-car markets, Spain led the PHEV path. The country posted a 178.8% year-on-year surge to 12,311 units, a key factor in the nation’s generally buoyant July. Over the first seven months of 2025, Spain’s PHEV market was up 94.5% year on year.

PHEV, as well as battery-electric (BEV) sales in Spain, have been aided by government incentive programs like MOVES III. Introduced in April 2021, the scheme has been extended several times. Most recently in April 2025. This has fuelled a significant surge in sales of electrified vehicles.

Germany, alongside Italy, also enjoyed PHEV success in July, with 83.6% and 83.2% year-on-year gains, respectively. In the PHEV marketplace, France lagged behind its fellow major EU players. The country saw 8,415 plug-in hybrids registered, an 8.2% fall from 12 months ago. Spanning the first seven months of the year, France’s PHEV registrations were down 30.5% year on year.

Other large markets saw notable PHEV growth, including Austria. It enjoyed a 97.9% year-on-year delivery boost in July, to the tune of 2,782 units. Similarly, Poland’s PHEV registrations jumped by 90.7%, and neighbouring Czechia enjoyed a 70.9% rise.

The smaller markets of Latvia and Lithuania ended July with continued positive performances. Both nations witnessed triple-digit year-on-year PHEV increases in both the month and year to date. Latvia’s PHEV sales in July resulted in the highest upswing across the EU at 435.1%, while Lithuania saw deliveries improve by 321.1%

The EU’s BEV paradox

Across the EU, 142,699 BEVs were registered in July, 40,082 more vehicles than in 2024, underlining a 39.1% year-on-year increase.

In July, BEVs held a 15.6% market share. This followed a high watermark of 16.7% recorded in June. BEVs also command a 15.6% hold on the overall new-car market across the first seven months of 2025. Significantly, this figure has remained relatively stagnant so far this year. It has not shifted more than 0.6 percentage points (pp) since January.

Germany accounted for the largest sales volume in the EU with 48,614 BEVs rolling out of dealerships. This was a 58% year-on-year increase, underpinning a 38.4% uptick in BEV adoption across the first seven months of 2025. Spain recorded a triple-digit, year-on-year increase with 8,691 BEVs hitting the country’s roads in July. This marked a 127.1% year-on-year boost.

While France claimed a positive trend in BEV sales, the bigger picture is not so rosy. A 14.8% year-on-year gain was offset by the year-to-date figures. This equated to a fall of 7,533 units and a 4.3% dip compared with 2024. This paints France as one of only five EU nations with negatively trending year-to-date BEV sales. Only Croatia, Estonia and Romania fared worse.

Polish promise

Poland ended July with an eye-catching result. The country’s BEV sales improved by 231.4% year on year. This result forms an upward trend of Polish BEV adoption, with 18,071 fully-electric vehicles sold between January and July. This equates to a year-on-year surge of 80.5%

BEV sales in Poland have seen a significant increase in 2025, aided by a combination of new government incentives. This has included the implementation of the NaszEauto programme.

Launched in early 2025, this government-funded scheme offers substantial subsidies for the purchase of new BEVs. It also contains additional bonuses for scrapping older internal-combustion engine (ICE) vehicles, as well as vehicle tax exemptions.

Across the EU, electric vehicle (EV) registrations, consisting of BEVs and PHEVs, increased by 45.5% to 233,889 units. The grouping also secured a market share of 25.6%, up 6.7pp year on year. Following the first seven months of 2025, the plug-in market share stands at 24.2%

Hybrids hold the cards

The irresistible trend of hybrid sales continued to dominate the EU new-car market in July. Between January and July, 2,255,080 were sold in Europe, a year-on-year improvement of 16.7%. The powertrain continues to be a popular bridging technology between traditional combustion engines and full EV adoption.

Hybrid power, accounting for mild and full versions, has regularly accounted for over a third of the overall EU new-car market in 2025. It claimed a 34.2% market share in July. In terms of registrations, the month saw a year-on-year growth of 14.3%, with 313,221 deliveries.

France enjoyed respectable hybrid growth in July with a 9.8% year-on-year upturn in volumes. This translates into a year-to-date hybrid volume increase of 30.5%, the nation’s only positively performing powertrain.

Germany’s hybrid interest remained strong. The country claimed a 15.5% year-on-year increase, with a total of 75,172 units offloaded. Seven months into 2025, hybrid sales in Germany increased by 10.7% year on year.

Bulgaria enjoyed the most significant upswing in year-on-year hybrid sales with a 102.9% increase in July. Only four nations witnessed a negative year-on-year hybrid trend. This included Denmark, the Netherlands, Finland, and Estonia. The latter saw a 33.5% drop and once again was in the doldrums.

Combining hybrid registrations with BEV and PHEV figures saw a total of 547,110 electrified vehicles registered in July. This amounted to a 59.8% overall market share for July, an 8.7pp year-on-year swing upwards. This largely mirrored in the data spanning January to July 2025, with the grouping claiming 59% of the market, up 10.1pp.

ICE ghost haunting the EU

The decline of newly registered ICE cars is nothing new. However, it does not appear to be happening fast enough to satisfy EU regulatory goals.

Across the EU new car market in July, petrol registrations declined by 12%, compared with 12 months previously, giving the fuel type a 27.2% share. Notably, this is the smallest monthly fall of the year so far. Spanning the first seven months of 2025, the figure fell by 20.1%.

The largest petrol registration drop was seen in Estonia, with a 49.1% plummet. Of the major markets, France saw the largest decline with 24,919 petrol-powered vehicles taking to the nation’s roads. This meant a year-on-year fall of 33.4%. Spain, Italy and Germany also witnessed preference for petrol peter out.

Latvia retained a notable thirst for petrol power in July. It saw registrations increase by 47.9%, with 1,427 units sold. Double-digit increases were also chalked up in Bulgaria, Croatia, Czechia, Malta, Portugal, Slovakia, and Sweden.

After seven months of 2025, only four EU states saw positive year-on-year petrol sales. This included Bulgaria, Croatia, Czechia and Latvia.

Diesel done for?

Diesel sales saw a continued decline in July, however, not as stark as in previous months. A 15.2% drop compared to 12 months ago was underpinned by the second-highest sales volume of the year at 91,032.

Across the bloc, between January and July, just three nations saw an increase in diesel uptake. This included Hungary, Lithuania and the Netherlands.

Combining petrol and diesel registrations, July saw a 12.9% year-on-year decline, and a 37.1% ICE market share. This equated to an 8.7pp slide. After seven months of the year, total ICE registrations hit 2,449,923, capping a 37.7% market share, a figure which has only declined 1.7pp since January.

Electric vehicles (EVs) pushed the German new-car market into growth in July. Were recently introduced tax incentives to thank for this registration recovery? Autovista24 editor, Tom Geggus, investigates.

July was the first time since April 2024 that the German new-car market recorded double-digit year-on-year growth. With 264,802 models taking to the roads, registrations were up by 11.1%, according to the latest data from the KBA.

‘This marked a significant recovery from the previous month’s decline and reflects a continued shift in consumer demand towards electrified mobility,’ commented Robert Madas, Autovista Group’s regional head of valuations.

Germany’s new-car market has struggled in 2025. May has been the only other month to record an increase, with volumes up 1.2%. While July’s growth was a refreshing change of pace, it was not enough to change the current year-to-date trend.

With 166,7591 new cars taking to Germany’s roads between January and July, deliveries were down by 2.5% year on year. This equates to 42,313 fewer new cars making their way to customers.

With registrations of internal-combustion engine (ICE) models falling, July’s growth was powered by battery-electric vehicles (BEVs) and plug-in hybrids (PHEVs). But just how well did these electric models perform, and were incentives to thank?

EVs and incentives

BEV registrations rose by 58% in July to 48,614 units. The technology captured an 18.4% share last month, up from a 12.9% market hold in July 2024. July’s BEV figures were just 0.1% behind those recorded in July 2023. At this point business and private purchases were subsidised by the German government.

In the year to date, 297,340 BEVs were delivered, an increase of 38.4%, according to Autovista24 calculations. This meant BEVs accounted for 17.8% of overall volumes during this period, up from 12.6%.

PHEV registrations surged by 83.6% to 27,197 units. The powertrain represented 10.3% of the market, up from its 6.2% share recorded one year prior. In the first seven months of 2025, a total of 166,102 PHEVs were registered, translating to year-on-year growth of 59.2%. This provided PHEVs with a 10% market share, up from 6.1%.

As a combined category, the EV market recorded 75,811 deliveries in July, up 66.4% year on year. This meant electric models took a 28.6% market share, up from 19.1% 12 months previously. In the year to date, plug-ins claimed a 27.8% share, up by 9.1 percentage points (pp). This was thanks to registration growth of 45.2%, with 463,442 units delivered.

Incentives linked to growth?

So, was this EV growth the result of recently introduced tax-based incentives? First, the scheme only covers BEV purchases from July 2025 to December 2027. While all-electric volumes exceeded PHEV figures last month, plug-in hybrids saw greater growth, continuing a trend established since February 2025.

Second, the scheme only covers corporate purchases. Private buyers and leasers do not benefit from the scheme. The VDIK outlined that companies buying BEVs for business use can deduct 75% from tax costs in the first year. After this, 10 % can be taken off in the second year, then 5% in the third and fourth years.

Third, following the withdrawal of incentives at the end of 2023 all-electric registrations struggled comparatively throughout 2024. Compared with July 2023, deliveries dropped by just 0.1% last month. Meanwhile, the first seven months of 2025 were up 10.6%, on the same period two years ago. This indicates non-incentive inspired improvement this year.

Autovista Group’s chief economist, Dr Christof Engelskirchen, also highlighted that the incentive programme fails to address the used-car market. This is a critical element in ensuring the long-term adoption of EVs. He wrote that ‘an increase in new-vehicle supply, without stimulating the demand for used models is not ideal.’

An increase in registrations without used-demand could also lead to supply outweighing demand in three to four years. This could impact the used-EV market in the future.

What is boosting electric growth?

ZDK president Thomas Peckruhn acknowledged that EV sales have continued to develop positively in Germany. However, he pointed out that a major contributing factor is a broader offering across the volume segments.

VDIK president Imelda Labbé made a similar observation. She also drew attention to an increasing number of BEV registrations for international manufacturers. ‘We attribute this increase to the significantly larger range of vehicles available in the entry-level segments,’ Labbé said.

‘In recent months, a number of brands have introduced new models that are technically mature and, above all, affordable for a broad range of customers and users,’ she added. However, affordable vehicles are only one side of the coin.

The need for charging

Alongside budget, the lack of an accessible and robust, charging infrastructure is also a barrier to entry for those considering an electric model.

‘In order to achieve a sustainable ramp-up of electric mobility, we need a joint plan from all stakeholders for favourable framework conditions, which also includes charging infrastructure and electricity prices,’ Labbé commented.

Peckruhn also affirmed the need for better framework conditions. This includes a reduction in electricity taxes and a demand-oriented expansion of residential charging infrastructure. A consumer-friendly payment and pricing model for public charging was also suggested.

VDA president Hildegard Müller also argued for more public charging points, an expansion of power grids, and affordable charging.

‘The reduction in electricity tax for all consumers agreed upon in the coalition agreement could lower prices but is not included in the draft budgets for 2025 and 2026. Improvements are urgently needed here – otherwise, the federal government will miss the opportunity to secure cheaper charging current for e-cars,’ she added.

ICE wears thin

While EV registrations increased, ICE deliveries slid. Petrol registrations fell by 13.4% year on year to 72,192 units. This meant its market share fell from 35% in July 2024 to 27.3% last month. The year to date was similarly bleak, with deliveries dropping 25.9% to 469,651 units. The fuel type’s grip on the market hit 28.2%, down from 37.1%.

Diesel deliveries did not decline as much, but their volumes made up far less of the market. The fuel type accounted for 15.3% of all registrations, down 2.8pp. Its deliveries dropped by 6% to 40,529 units. In the year to date, it saw a 20.9% drop, with 251,911 new models hitting the roads. This meant it made up 15.1% of the market, down from 18.6% 12 months ago.

Combining petrol and diesel figures, the ICE sector fell by 10.9% last month to 112,721 registrations. This accounted for 42.6% of the total market, down from 53.1%. In the year to date, there were 721,562 ICE deliveries, down 24.2% year on year. Accordingly, ICE took a 43.3% share, down 12.4%.

So, while internal-combustion engines continue to command more of the German new-car market, the fuel type’s grip is thawing.

Most popular powertrain

While ICE thawed and EVs gained traction, hybrids continued to enjoy the greatest volumes. Combining full and mild variants, hybrid registrations reached 75,172 deliveries, up 15.5% year on year. This allowed the technology to claim a 28.4% share of the market, up 1.1pp.

The powertrain has been in a close battle with petrol for market dominance. It managed to take control in five out of seven months this year. However, its margin over its rival has only ever been a few hundred units. The exceptions to this trend were March, with a gap over 4,000 models, and July, where the difference was just under 3,000.

With this battle going the way of hybrids, the powertrain secured the greatest portion of the market in the year to date. Hybrids made up 28.5% of deliveries between January and July 2025, up from 25.1% 12 months ago. Registrations reached 475,138, up 10.7%.

Combining hybrid and EV numbers reveals a surging electrified market. In July, these models hit a 57% market share, up 10.6pp. Deliveries increased by 36.5% to 150,983 units. This bolstered the year-to-date figures to 938,580 registrations, up 25.4%, accounting for 56.3% of the market, up 12.5pp.

For only the second time in 2025, battery-electric vehicles (BEVs) saw registration growth in the French new-car market. So, which powertrain failed to deliver in the month? Autovista24 special content editor Phil Curry examines the data.

The French new-car market suffered another steep decline in July, as the country’s automotive market continued to struggle.

In July, registrations of new passenger cars fell by 7.7%, according to data from the PFA. This marked the seventh consecutive month of delivery declines. The result means no year-o-year improvements have been made so far in 2025. It was also the 14^th decline in the French new-car market in 15 months.

A total of 116,378 models took to French roads in the month, a difference of 9,659 units according to Autovista24 calculations. This represented the market’s third-biggest decline of the year. Sales to private individuals and fleets both fell by 10% each in the month.

Across the first seven months of 2025, the French new-car market declined by 7.9%. A total of 958,581 models were delivered. As a result, the country missed the one-million-unit mark, with 82,346 fewer registrations.

Changes to the country’s incentive scheme for BEVs are providing challenges in the French new-car market. These amendments could prove fruitful in the future. However, it is the decline of the petrol and diesel markets that is driving the country’s overall volumes down.

Wait-and-see approach

‘The automotive market is not recovering and is undoubtedly taking a wait-and-see approach due to changes in government support measures for EVs,’ commented Marie-Laure Nivot, head of automotive market analysis at AAA Data. 

‘The new, slightly more advantageous ecological bonus formula has not yet had a significant impact given the delays between orders and deliveries.

‘Combined with the electric leasing expected at the start of the school year, it could finally make EVs attractive again for individuals, but it will not necessarily be enough to end this long downward trend that began in spring 2024,’ she added.

Strong French BEV market

The changes to the country’s ecological bonus came into effect on 1 July. The scheme has been renamed the ‘electric private vehicle boost’. It is now funded by energy savings certificates, with French government support withdrawn.

While the eligibility criteria for models are unchanged, the amounts available have been revised upwards. There will be €3,100 for households whose reference tax income is above €16,300, and €4,200 for the lowest-income households.

The social leasing plan will apply to 50,000 vehicles ordered from 30 September, according to AAA Data. Several brands are already displaying rental amounts.

BEVs saw figures improve by 14.8% in July, based on Autovista24 calculations. This was only the second time in 2025 that the all-electric market posted growth. This was its best performance of the year in terms of year-on-year percentage change.

A total of 19,547 BEVs were registered in the month. This gave the powertrain a 16.8% share of the new-car market, up by 3.3 percentage points (pp) over July 2024. In total, 2,517 more new all-electric models were delivered in July.

The monthly result meant the decline in the BEV market for the whole of 2025 so far improved slightly. Comparatively, the market was 4.3% down on 2024’s volumes, with 7,552 fewer models delivered. BEVs accounted for 17.5% of overall volumes from January to July, up 0.6pp year on year.

However, the new incentives do not seem to have impacted the BEV market in July. Growth was mainly down to fleet purchases. In this market, all-electric deliveries jumped around 70%, to gain a 22% market share. Private registrations declined by 15%, according to AAA Data.

Mixed results for hybrids

While BEVs led improvements in July, hybrids, made up of full and mild hybrids, dominated in terms of volumes.

A total of 53,188 units were registered in the month, an increase of 9.8% year on year, Autovista24 calculated. This gave the technology a market-leading 45.7% share of the country’s total. This was up from 38.4% in the same month of 2024.

Between January and July, a total of 429,405 hybrids were delivered to customers, a 30.5% increase. This equates to an improvement of 100,429 units. In this period, the powertrain represented 44.8% of the market, up 13.2pp.

Meanwhile, plug-in hybrid (PHEV) registrations declined by 8.2% in the month, with 8,415 units delivered, according to Autovista24 calculations. Despite this, their market share remained stable, with the 7.2% recorded in the month, down 0.1pp year on year.

Over the first seven months of 2025, PHEVs recorded 57,564 deliveries, down 30.5% compared to the same period in 2024. This has meant their market share fell by 2pp, to 6%.

Combined French growth

Combining BEV and PHEV deliveries, the electric vehicle (EV) market grew by 6.7% in July, thanks to all-electric cars. This gave the technology a 24% share, up by 3.2pp. Between January and July, EVs were down 12.7%. Plug-ins took a 23.5% hold of overall registrations, down by 1.3pp.

Adding hybrids to these figures, the electrified market grew by 8.7% in July, equating to a jump of 6,492 units. This gave the powertrain grouping a dominating 69.7% hold of the market, its third-highest share of the year. The result also marked a 10.5pp increase compared to July 2024.

In the first seven months of 2025, electrified registrations were up 11.5%, with 67,579 more models delivered. This equated to a 68.3% market share, an increase of 11.9pp compared to 12 months prior.

Petrol fuels downfall

Much of France’s new-car market problems can be attributed to a steep decline in petrol and diesel registrations during 2025.

Petrol has not seen its monthly market volume increase since February 2024, making July its 17^th consecutive drop. The powertrain achieved 24,919 deliveries in the month, a fall of 33.4%, based on Autovista24 analysis. This was its third-largest decline of the year and meant 12,522 fewer units were taken to the country’s roads.

This meant the fuel type’s market share fell by 8.3pp compared to July 2024. It ended the month at 21.4%, its joint-second-worst result of 2025. It was, however, an improvement on June’s result.

Across the first seven months of 2025, petrol has seen 219,766 registrations, a fall of 33.6%. Therefore, 111,360 fewer units were delivered in the country, over a third down compared to the same point last year.

The technology took 22.9% of the total passenger-car volume in the period. This was a drop of 8.9pp compared to 12 months prior and nearly half the share of the hybrid market.

Diesel slide continues

Meanwhile, diesel continued its slide in July. A fall of 28.3% meant 2,692 fewer registrations took place in the month. This left the powertrain with 5.9% of the market, down from the 7.5% seen in July 2024, according to Autovista24 calculations.

Between January and July, 48,306 diesel models were registered, a drop of 41% year on year. The fuel type captured a 5% market share during this period, a drop of 2.9pp. However, the technology closed the gap to PHEVs compared to their first-half shares, with just 1pp between them.

The poor performances meant that the combined internal-combustion engine (ICE) market fell by 32.4% in July, taking just 27.3% of the market. This was a 10pp drop year on year.

In the first seven months of 2025, ICE model deliveries declined by 35.1%, holding 28% of the total. This was down from its 39.7% share recorded a year previously.

Halfway through 2025, Romania’s new-car market is struggling. Ulmis Horchidan, Autovista Group’s head of valuations for Romania, Hungary, Slovenia, Slovakia, and the Czech Republic, examines the market with Autovista24 editor Tom Geggus.

In the first half of 2025, new-car deliveries in Romania dropped by 22% year on year. Political instability took an economic toll, directly impacting the Rabla incentive programme.

The scheme has suffered ongoing delays this year. At the time of publication, this year’s Rabla programme for 2025 looks to be activated on 1 September. As previously discussed on the Autovista24 podcast, the renewal scheme provides a healthy boost to new car sales in Romania.

New car stocks have been accumulating as supply has far outpaced demand, leading to increased discounting from dealers. This has been a necessary tactic as sellers sought to avoid spiralling costs as cars idled in their forecourts.

Even mass-market brands like Dacia, Renault, Hyundai, Ford and Toyota have seen shrinking registrations in the first half of 2025.

Powertrain performance in Romania

This negative performance was not felt consistently across all the powertrains. In an ongoing trend, the combined category of full and mild hybrids saw the greatest volume of sales. The powertrain category enjoyed a registration increase of 9.5% year on year.

Conversely, diesel models recorded the steepest decline, with registrations down by 47.7%. This drop is to be expected for the fuel type as carmakers gradually phase out production of internal-combustion engine (ICE) models.

The greatest year-on-year improvement was enjoyed by plug-in hybrids (PHEVs). While more expensive, these models offer better electric ranges compared to their battery-assisted hybrid stablemates.

PHEVs are experiencing the opposite trend to that of diesel powertrains. More plug-in hybrids are hitting the market each month, offering a bridge between hybrids and battery-electric vehicles (BEVs).

However, both PHEVs and BEVs still command a small share of the Romanian new-car market. Registrations of all-electric cars slumped by 44.3% year on year, as the technology is heavily reliant on incentive schemes.

Incentive absence impacts brands

Nearly all brands suffered BEV declines in Romania in the first half of 2025. Hyundai, Tesla, and even premium European carmakers such as BMW have recorded all-electric drops so far this year.

This highlights the impact of the generous Rabla incentive programmes on new BEV sales. The big drop in Tesla sales, a brand which has a very good image in Romania, stands testimony to this reality.

Additionally, while the number of new BEV deliveries fell, the marketplace has also become more crowded with Chinese brands. In the last two years, the likes of BYD, Geely, Lynk & Co, Leapmotor, MG, Chery, Farizon and Maxxus have entered the country.

These carmakers have come with big new-car sales plans. However, they will not be sourcing new clients but rather taking from the pool of existing ones.

Management by experienced local teams, benefitting from a wealth of expertise built up with other OEMs will boost these brands. This includes the support of operational dealer networks and supplies from spare parts warehouses.

The perceived quality and innovation of Chinese brands leave no room for interpretation. These carmakers are embracing advanced technology, electrification and connectivity, offering a strong lineup. There is plenty of variation too, from affordable ICE models to full hybrids, PHEVs and BEVs.

Wider automotive issues in Romania

Romania’s light-commercial vehicle (LCV) market is also in freefall, with only 6,696 units sold in the first half of 2025. This equates to a drop of 33% compared to 10,083 units registered across the same period in 2024.

The rest of 2025 is going to be challenging for Romania’s new vehicle markets. Compounding so many other issues, there is an additional complicating factor. Starting from 1 August 2025, the VAT rate for various products, including vehicles, will increase from 19% to 21%.

Now the industry must wait until September and the long-awaited return of the Rabla programme for any real boost. Hopes will once again be pinned on these incentives to help improve new-vehicle sales.

The EU new-car market saw a marked decline in June. But as 2025 hits the halfway point, which countries are looking strong, and which ones are a cause for concern? Autovista24 web editor James Roberts takes a deeper dive into the figures.

A total of 1,010,200 new cars were delivered across the EU in June. This marks a 7.3% year-on-year decline for the bloc.

Spanning the first six months of the year, total registrations are down 1.9% with 5,576,568 million units, according to the latest figures from ACEA. This is a deficit of 79,777 units compared with the halfway mark in 2024.

Of the 27 EU member states, 12 registered growth in June. Focusing on the four largest markets, Spain continued to shine.

The country recorded a 15.2% year-on-year increase in June, thanks to 119,125 registrations. Notably, battery-electric vehicle (BEV) and plug-in hybrid (PHEV) powertrains drove this growth, with respective triple-digit increases compared with 2024.

This monthly improvement is also echoed when looking at the first six months of 2025. Spain recorded a 13.9% increase in registrations, with 609,801 units hitting the country’s tarmac. This made it the most prosperous of the major EU players.

Conversely, the EU’s largest automotive marketplace, Germany, saw a significant dive in June. Monthly registrations dropped by 13.8%. This followed a resilient May, where the country witnessed a 1.2% upward swing.

France saw a continued registrations slide, with a 6.7% fall in the month. Meanwhile, Italy witnessed a double-digit decline of 17.4%.

EU winners

Ireland enjoyed the bloc’s biggest overall registrations climb with a 63.2% year-on-year increase. However, this is a small-volume market. The biggest new-car market recording a double-digit improvement was Portugal. Registrations in the country surged by 14.8% with 23,184 units. Double-digit gains were also enjoyed by Croatia, Finland, Latvia and Lithuania.

In particular, the Baltic states of Latvia and Lithuania enjoyed a strong June, with 39.4% and 32.7% rises respectively. Both nations have benefited from lower interest rates, increased corporate fleet purchases and improved vehicle supply. This year-on-year boost is coupled with a strong showing in their year-to-date figures.

Lithuania has seen a 40.6% increase in registrations compared with the first half of 2025, with 20,790 units sold. Between January and June, the nation witnessed a significant 139.2% increase in PHEV registrations, coupled with a 41.6% leap in BEV numbers.

Neighbouring Latvia has similarly trended upwards, with a 29.1% year-on-year upswing in the first half of 2025. PHEVs undoubtedly drove this growth, with the powertrain enjoying a 393.5% increase, jumping from just 246 to 1,214 units sold compared with the first half of 2024.

Estonia proved to be the outlier among the Baltic states. The country endured a 14.5% decline in June. This was compounded by a wider 39.5% fall in the year to date, seemingly driven by significant drops across all powertrains, except PHEVs.

Of the larger markets, Austria saw a monthly drop of 9.2% compared with June 2024. However, in the year to date, the nation’s registration figures remained positive, with a 5.9% gain from the first six months of the year.

Electrified powertrains have driven this growth. PHEVs witnessed a 50.7% year-on-year increase in the first half of the year, while BEVs enjoyed a 42.2% uptick.

EU buyers choose hybrids

In the year to date, more than 1.94 million full and mild hybrids have been delivered across the EU, amounting to a market share of 34.8%.

June saw a sixth consecutive month of gains for hybrid powertrains, albeit with the smallest year-on-year increase of 2025 at 6.1%. This was the first single-digit monthly growth in the six-month period. The result gave the technology a 33.8% market hold.

Of the major markets in June, Spain accounted for the highest number of hybrid registrations with 46,639 new models taking to the country’s roads, a 24.3% year-on-year increase. France also enjoyed a strong growth of 19.5%.

More generally, Portugal witnessed a sizable monthly uptake in hybrid power, with a 77.1% year-on-year increase. Portuguese hybrid popularity was also apparent in the first six months of the year, recording a 62.4% year-on-year gain, with 29,762 units leaving dealerships for the first time.

Good EU BEV growth

Electric vehicles (EVs), consisting of BEVs and PHEVs, continued to see growth in June. Despite this, the market share remained below what is desired for wider decarbonisation goals.

A 7.8% year-on-year increase in EU BEV registrations meant that the technology made up 16.7% of new-car volumes in June, with 168,488 units. Meanwhile, PHEVs saw a healthy 41.6% year-on-year ramp-up to 94,178 deliveries. This gave the powertrain a 9.3% market share.

Together, BEVs and PHEVs accounted for 262,666 units registered in the month. EVs accounted for 26% of the overall market, up 5.6 percentage points (pp) on the same period in 2024, and the highest share so far in 2025.

Adding hybrids to the EV mix pushes the monthly total electrified vehicle share up to 59.8%. This underlines the appeal of the powertrain as a gateway to electrification in the EU. However, it also reveals an ongoing reluctance for consumers to commit fully to EVs.

Cyprus continued its notable growth in BEV uptake. Following a 190.2% increase in May, this remained high in June with a 166.1% increase. However, this improvement was based on a lower volume of 165 units. Similarly, Slovakia and Slovenia also saw triple-digit monthly increases in both the BEV and PHEV markets.

Sweden and the Netherlands continued to push forward in EV adoption with healthy BEV figures and double-digit PHEV gains.

Widening analysis to the first six months of 2025, and EV registrations command a 24% share of the EU new-car market, with over 1.34 million units. This rounds up to a 21.1% year-on-year increase. Again, adding hybrids to the powertrain mix makes up a 58.8% share of the overall market. This marks an increase of 10.2pp compared with the first half of 2024.

Between January and June, stand-out EV adopters included Austria, which recorded a 42.2% increase in BEV registrations, and 50.7% improvement for PHEVs. Of the four biggest new-car nations, BEVs propelled Spain’s overall prosperity with a 103.2% monthly increase and 83.9% surge over the first six months of 2025.

Cold as ICE

The decline of new internal-combustion engine (ICE) registrations is already a well-established trend in 2025, and the EU is no exception. This is sapping gains made from progress in the bloc’s electrified market.

In June, petrol totals amounted to 280,150 registrations, a slump of 25.4% compared with the same period in 2024. Yet, the diesel decline was more pronounced. Just 90,991 vehicles delivered, as opposed to 138,085 units recorded 12 months prior. This equated to a 34.1% fall. ICE models represented 36.7% of the overall new-car market in June, the powertrain grouping’s lowest monthly share so far in 2025.

After six months, ICE registrations are down 23% year-on-year, holding just 37.8% market share. This translates to a considerable deficit of 630,555 units.   

For a second consecutive month, Romania saw the largest ICE sales decline.  Petrol nosedived by 66.1% in June, while diesel fell by 61.8%.

In terms of petrol registrations, only Bulgaria, Croatia, Ireland, Latvia and Slovenia saw an increased share. Diesel fared worse, with just four member states posting gains. This included Ireland, Lithuania, Malta and the Netherlands.

In the first half of 2025, petrol has prospered the most in the relatively strong market of Latvia with a 26.6% gain, and 7,414 units sold.

The largest drop has come in the neighbouring country of Estonia, amounting to a 60.3% plummet. Of the major markets, France has suffered the strongest petrol slump. With just 194,947 deliveries from January to June, this marked a 33.7% year-on year decline.

France is also the biggest player in the EU to turn away from diesel. Emphasised by a 42.7% slide in registrations, the country is leading the charge away from ICE models. However, consumers in the country are not favouring PHEVs or BEVs. Instead, buyers are looking towards hybrids.

The country’s powertrain adoption seems to be providing a glimpse of the wider EU’s stunted EV market share growth.