Topic: Europe

The automotive landscape in Poland has witnessed relative stability throughout the first half of 2025. However, there are some causes for concern. Marcin Kardas, head of valuations at Eurotax Poland explores the latest trends with Autovista24 web editor James Roberts.

The second quarter of 2025 has been stable for the new-car market in Poland. Continuing a trend established in the first three months of the year, no significant changes have impacted the country’s passenger car market.

In the first half of this year, 285,311 vehicles were registered in Poland. This translates to a 3% year-on-year increase.

This growth has been helped by results in the second quarter of 2025, which haveseen little in the way of registrations fluctuations. Continuing a trend established in the first three months of the year, no significant changes have impacted the country’s new-car market.

More broadly, the slow growth in both new passenger, and light commercial vehicle (LCV) markets is concerning, suggesting peak demand may have passed. The influx of new Chinese brands, driven by high European margins and domestic market issues, will intensify competition and put pressure on residual values (RVs).

Battery-electric vehicle (BEV) registrations in Poland enjoyed a 60.9% year-on-year increase over the first half of 2025. Despite this considerable growth, these numbers only constitute 5% of the overall market share.

Additionally, LCVs are undergoing some stagnation, whilst the truck sector continues to struggle.

Following a wider European trend, the number of hybrids in Poland’s market mix is increasing. This is a by-product of  powertrain evolution offerings in the country, dictated by emission limits.

Poland’s Chinese conundrum

The used-car market picture in Poland is experiencing a period of stable demand combined with consistent value depreciation. Therefore, the continuous growth of the new vehicle market most likely results from new Chinese brands, attracting buyers who previously sought younger used cars.

Importers have noted a considerable share of such customers, supplemented mainly by small entrepreneurs. Sales to fleets are a not currently a priority for importers of Chinese brands, though they will likely need to consider this an increasingly viable option over time.

Volatile used-car demand

While demand for used cars exists, the market itself has proven volatile in Poland. Young used cars are selling quite well, though the debut of new Chinese brands creates ideal competition for them.

Older vehicles also sell steadily. However there is a noticeable, consistent decline in value, regardless of the car’s age.

Currently, this decline is one of the fastest in Europe. However, considering the significant overvaluation of used cars in Poland during the COVID-19 pandemic, this should be seen as a normal market reaction.  

Analysing individual drive types there is a smaller decline in the value of self-charging hybrid powertrains.

Used hybrids in Poland have started to retain their value better than internal-combustion engine (ICE) cars, which previously dominated. The largest drops in asking prices affect electric powertrains, which is evident not only in Poland but across Europe.

Poland’s commercial sector stagnation

LCVs are selling at a slower pace than passenger cars. Significant declines in value remain, especially among the youngest used vehicles.

In the first six months of the year, 33,068 new LCVs were registered. This is an increase of just 0.6% year-on-year. For both passenger and commercial vehicles, the growth in registrations has clearly been slowing since the beginning of the year.

Despite this, prices of new LCVs have stabilised, and even slightly increased. Only individual brands, such as Toyota, are significantly discounting their vehicles.

Therefore, it appears the competition for discounts has ended. This should slow down the depreciation of used LCVs, however it appears this is not the case. This ongoing downward trend in values is forced by lower demand set against previously high values, which are now returning to acceptable levels.

Sales of all-electric LCVs remains poor, spanning both new and used models. Their depreciation is much greater than diesel-powered vehicles

Tough times continue for trucks

For the past two-and-a-half years, the truck segment in Poland has provided the most negative market situation. Only the newest, and lowest-mileage vehicles are selling for fleet renewals. However, these are pricier in Western Europe, making import unprofitable. This is due to a pandemic-era vehicle shortage now hitting the market.

Older or high-mileage trucks in Poland have lost appeal. This stems from the sales blockade, caused by the Russian trade embargo, plus the closure of channels to neighbouring countries. As sales fall, stock levels rise and values depreciate across all age groups.

Technical issues and high operating costs of Euro VIe engines also deter buyers, particularly for DAF, MAN, and Scania vehicle, which have poor reputations. LNG-powered tractor unit demand has almost vanished. A few of these vehicles remain on the market, yet selling them is a huge challenge as they are often bought for parts.

Beyond international transport vehicles, distribution and construction trucks are also becoming cheaper. More generally, the entire heavy commercial vehicle market is in crisis in Poland, with no immediate signs of recovery.

The French new-car market appears to be in turmoil, with all but one major powertrain technology declining in June. But could changes to battery-electric vehicle (BEV) incentives help the market? Autovista24 special content editor Phil Curry examines the figures.

The French new-car market suffered another month of registrations declines in June, marking the sixth-consecutive month of poor results. Last month, registrations fell by 6.7%, with 169,504 units delivered, according to data from the PFA.

Deliveries of new passenger cars have seen consecutive monthly declines this year, while June was the 13^th in 14 months. In that period, only December 2024 saw a slight improvement. The result continues France’s run as the worst-performing country in Europe’s big five automotive markets.

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‘This is the sixth consecutive month of decline, but the start of this sequence dates back more than a year, only interrupted by an artificial rebound in December,’ highlighted Marie-Laure Nivot, head of automotive market analysis at AAA Data. 

‘Although year-to-date orders for new passenger cars recovered slightly in June, they remain down  by 7.9% cumulatively since the beginning of the year.’

French BEV bonus ends

In late June, the French government announced that the country’s ‘ecological bonus’ scheme would stop from 1 July 2025. This provided a financial incentive towards the purchase of battery-electric vehicles (BEVs).

Models ordered before this time and applications sent within six months of the billing of the vehicle would remain eligible for the subsidies. However, the government stated that financial assistance would still be available for buyers of models under €47,000, and weighing less than 2,400kg. This would be funded by the country’s energy savings certificates scheme (CCE) instead.

AAA Data highlighted that this change will see the maximum amount awarded to buyers increase. The poorest households will receive €4,200 towards the cost of a BEV, an increase of €200. Other households will see incentives rise from €2,000 to €3,100.

The move to fund incentives from the CCE means the financial burden is no longer felt by the French government. Instead, energy companies are footing the bill as part of the push towards a decarbonised sector.

Additionally, from September 2025, the government will reactivate the country’s social leasing scheme for BEVs.

The scheme aims to support the leasing of at least 50,000 passenger cars, and will also be funded by CCE. However, it no longer includes the ecological bonus, which could see rental costs rise from those offered under the scheme in 2024.

Whether these changes provide a boost to the BEV market remains to be seen. But with the technology struggling, the government has acted to increase financial incentives, without the burden of funding of the scheme.

‘The new scale of the ecological bonus that has just been announced and the electric leasing expected at the start of the school year still give hope for a reversal of the trend for electric vehicles (EVs),’ outlined Nivot.

BEV’s registration blow

BEVs saw another decline ahead of the change in the ecological bonus scheme. The technology has stalled in 2025, with only one small increase recorded in April. In the remaining months, it has suffered heavy drops.

In June, a total of 28,858 units were registered, according to Autoivsta24 calculations. This represented a 1.6% fall year on year, equating to a difference of just 475 units. However, due to weaker results elsewhere in the new-car market, BEVs increased their market share by 0.9 percentage points (pp) to 17%.

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AAA Data states that the BEV market is currently being driven by fleets, with related registrations up by around 49%. Conversely, private sales were down by around 30% in the month.

In the first half of the year, BEV registrations decreased by 6.4%, with 148,333 units delivered to customers. The powertrain’s market share improved by 0.3pp, thanks again to reduced volumes among other propulsion types.

PHEV registrations in freefall

Despite enjoying strong growth in neighbouring markets, plug-in hybrids (PHEVs) also declined in June.

Their 16.1% fall continued a streak of double-digit drops in 2025. In total, 11,784 new models were delivered to customers. This translated to a fall of 2,263 units, based on Autovista24 calculations. This meant the PHEV market share fell by 0.7pp to 7% at the end of the month.

The French PHEV market has endured a tough start to the year. In the first six months of 2025, volumes were down by 33.3%. The powertrain ended the first half of 2025 with a 5.8% share of total registrations. This was a drop from the 8.1% the technology held at the end of the same period in 2024.

Combining PHEVs and BEVs, the EV market in France saw a decline of 6.3% in June, with a loss of 2,738 units. Its market share of 24% was up by just 0.1pp. year on year

From January to June, EV volumes were down 14.9%, with 34,611 fewer units taking to French roads. Despite this double-digit decline, market share was only down 2pp, to 23.4%.

Hybrid domination continues

France changed the way it reported hybrid figures in April of this year. Until that point, the country’s automotive authorities separated full hybrids (HEVs) and mild hybrids. Now, both powertrain types are included in a single category.

This happened at a time when HEVs had taken the lead as the dominant powertrain type from petrol for the first time. However, since the change in reporting, the hybrid category has been a clear leader.

This trend continued in June. According to Autovista24 calculations, hybrids recorded a total of 74,337 registrations, growing by 19.5% compared to the same period last year. This gave the technology a 43.9% market share, a 9.7pp improvement year on year.

The hybrid sector saw registrations increase by 34.1% across the first six months of 2025. So far this year, it is the only powertrain to record growth, with a total of 376,217 units.

The electrified market witnessed an increase of 8.9% in June, after adding hybrid figures, with 9,394 extra units taking to the country’s roads. This gave the technology a commanding 67.8% share of the market, up from its 58.1% market hold in June 2024.

Over the first half of 2025, electrified vehicles accounted for 68.1% of total registrations, up by 12.1pp. Volumes increased by 11.9%, equating to 61,087 more deliveries.

Petrol struggles in France

This year, petrol-powered cars have struggled in all major European markets. This has especially been the case in France. June represented another poor month, with the fuel -type declining by 30.7% year on year, Autovista24 calculations show. A total of 37,747 petrol cars were registered, 16,733 units fewer than in June 2024.

This left the powertrain with a 22.3% market share, a drop of 7.7pp compared to the same point last year.

In the first half of 2025, petrol volumes have dropped by 33.7%, the worst decline within the big five European markets. A total of 194,847 units were registered, representing 23.1% of the overall market. This figure was down by 9pp against the first six months of last year.

The decline may be due in part to carmakers reducing their options when it comes to pure petrol models. Instead, many are offering mild-hybrid petrol powertrains, which now count towards the increased hybrid figures.

Diesel registrations plunge

Diesel registrations also continued to plunge. June saw just 9,738 units make their way to customers, a drop of 40% compared to 12 months prior. The fuel type recorded the lowest volume of major powertrains and represented just 5.7% of the market last month. This was down from its 8.9% share a year previously.

During the first half of the year, diesel registrations fell by 42.7%, with 41,490 deliveries. This gave the powertrain a 4.9% market share, down by 3pp.

Combining petrol and diesel numbers, the internal-combustion engine (ICE) market suffered a decline of 32.8% in the month, taking just 28% of total registrations. This was a drop of 10.9pp year on year. Between January and June, ICE registrations fell by  35.4%, while their market share dropped by 11.9pp to 28.1%.

At some points this year, ICE has come close to being overtaken by EV registrations. For example, in April, plug-ins trailed the ICE market by just 0.4pp. However, with continued poor performances for electric technology, especially hybrids, the gap has widened in recent months.

The German new-car market suffered its fifth decline of 2025 in June. An exceptional plug-in hybrid (PHEV) result was not enough to offset a significant petrol and diesel decrease. Tom Hooker, Autovista24 journalist, analyses the figures.

New-car registrations in Germany fell by 13.8% in June, with a total of 256,193 units. This equated to a loss of 41,136 units year on year. It also marked the country’s biggest overall monthly decline since August 2024. However, the volume was also the highest delivery total recorded since June 2024.

The commercial sector endured a 15% drop in volumes while still accounting for 67% of the market, according to the latest data from the KBA. In the private sector, registrations decreased by 10.2%.

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By the end of the first half of 2025, the German new-car market was down 4.7% compared to the same period last year. This was a significant drop from the 2.4% year-to-date decline recorded in May.

A total of 1.4 million units took to the country’s roads from January to June. This leaves a gap of 68,883 deliveries to make up in the second half of the year, if the market wants to return to growth.

PHEVs carry the market

PHEV volumes surged by 66.4% in June with 25,608 registrations. This translated to a year-on-year gain of 10,217 units.

The powertrain was comfortably the best-performing in the month, in terms of growth. The result continued the technology’s streak of double-digit improvements since the start of the year. Since March, PHEVs have posted growth of at least 60% every month.

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Excluding the PHEVs from the overall new-car market would have seen it suffer an even steeper decline of 18.2%. The technology took a 10% market share in June, up by 4.8 percentage points (pp) compared to the same month last year. However, PHEVs still sit 3.9pp away from diesel, the next closest powertrain.

‘The growth of PHEVs has been very strong in 2025. A total of 138,905 PHEVs were registered from January to June. This was a striking 55.1% increase compared to the first six months of 2024. It gave the technology a 9.9% market share, up from 6.1%,’ explained Robert Madas, Autovista Group’s regional head of valuations.

BEV growth slows

Battery-electric vehicle (BEV) deliveries increased by 8.6% in June, reaching 47,163 units. This was its highest delivery total since December 2023. However, the result ended a double-digit growth streak that began at the start of this year. The technology captured 18.4% of overall volumes, an increase of 3.8pp compared to June 2024.

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‘A total of 248,726 BEVs were delivered in the first half of 2025, equating to an impressive registration improvement of 35.1% year on year. This corresponded to a market share of 17.7%, up from 12.5%,’ stated Madas.

The powertrain has helped to prevent further declines in the overall market, gaining 64,601 units year on year.

‘June’s registration figures were again influenced by the accelerated shift towards electric vehicles (EVs), compared to a slump in the first months of 2024 due to the removal of subsidies for electric cars at the end of 2023. Electrified cars are still booming, with BEV and PHEV models showing good growth in particular,’ noted Madas.

Combining PHEV and BEV figures, the EV market improved by 23.8% in June. Despite being the smallest plug-in growth of the year, EVs have recorded double-digit increases every month so far in 2025. Its 72,771-unit total was also the highest monthly volume for the powertrain grouping since August 2023.

EVs made up for 28.4% of total registrations in June, up by 8.6pp year on year. In the first half of 2025, volumes grew by 41.6% to 387,631 deliveries. This gave it a 27.6% market hold, an improvement of 10pp compared to the same period last year.

A government U-Turn?

At the start of July, a planned reduction in electricity tax for private households was dropped by the German coalition government, according to Die Zeit. It had been previously agreed to reduce the electricity tax as quickly as possible for everyone.

However, the federal government recently decided to initially reduce the electricity tax only for the manufacturing, agriculture and forestry industries. This decision has been criticised by automotive industry bodies, who saw the relief as a helping hand in boosting EV adoption.

‘We are disappointed that the governing coalition has now withdrawn the promised reduction in electricity tax,’ commented VDIK president Imelda Labbé.

‘With the sudden withdrawal of the planned reduction, the federal government is continuing the lurching course in electromobility that the previous government initiated with the abrupt end of the environmental bonus in 2023,’ she said in a separate statement.

Electricity’s decisive role

The introduction of a charging card with electricity credit is currently being discussed. This could provide an alternative incentive to buyers instead of purchase incentives. It could also create a significant standardisation of the charging process at public charging points.

‘Electricity costs play a decisive role in EVs. Therefore, the price of electricity must be lowered at least to the European average level. The average energy costs per kilometre must not be more expensive than for comparable combustion vehicles,’ outlined Labbé.

‘With the withdrawal of the federal government, one of the most important impulses for the switch to climate-neutral electric vehicles is no longer available. We urgently need the announced measures to promote e-mobility to achieve a share of well over 20% BEVs in new registrations and thus the CO₂ fleet limits,’ she stated.

‘Despite the upward trend in e-mobility in the first half of the year, the private market in particular needs strong impetus for more growth,’ said ZDK president Thomas Peckruhn.

‘We urgently need cheaper charging electricity prices and a significant reduction in grid charges. Equally important is more transparency in charging tariffs,’ he noted.

Misplaced EV incentives

Meanwhile, at the end of June, the government adopted the Act for an Immediate Tax Investment Programme to Strengthen Germany as a Business Location. This act included a degressive depreciation scheme for commercial EV customers, as written by the IHK.

Businesses that purchase BEVs between 1 July 2025 and 31 December 2027 can claim 75% of the purchase cost as depreciation in the first year. The remainder is depreciated over the next five years. It falls to 10% in year two, then 5% in years three and four, 3% in year five and 2% in year six.

However, the ZDK has criticised the act, stating that it has missed other important sectors of the BEV market.

‘As important as it is to boost the company car business for the car trade, the federal government should always think about incentives for private households in such a promotion initiative,’ highlighted Peckruhn.

‘The federal government is talking about waiving subsidies, but at the same time is relying on tax advantages and price limit increases. That does not go together. To advance the ramp-up of e-mobility as a whole and in the best possible way, we urgently need growth incentives for private customers in addition to commercial promotion,’ he stated.

Social leasing program drawbacks

Peckruhn also commented that current social leasing programs are allowing more new-car registrations in the short term. But, in the long term, they are stopping the creation of a sustainable vehicle fleet.

This is because many lessees cannot afford to take over their vehicle after the end of their contract. Some even switched back to cheaper internal-combustion engine (ICE) models.

‘Funded projects should instead aim to create permanent ownership and enable viable financing models. Any measures must also include the second-hand car market. After all, building a healthy used car market for EVs is essential for the spread of this technology,’ claimed Peckruhn.

Record petrol market decline

Registrations of petrol-powered cars fell by 34.7% in June to 73,015 units. This equated to a loss of 38,753 deliveries year on year.

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It marked the fuel type’s biggest monthly decline since December 2021 and continued petrol’s streak of double-digit declines in 2025. This was despite recording its largest monthly volume total in eight months. Removing petrol from the overall new-car market would have resulted in a drop of just 1.3%.

The powertrain captured 28.5% of overall deliveries in June, down by 9.1pp compared to June 2024. In the year to date, petrol volumes fell by 27.8%, with 397,433 units. This gave the fuel type a 28.3% market hold, down from 37.4%

Diesel follows suit

Diesel-powered cars also suffered a severe decline in June. Deliveries decreased by 32.4% year on year, with 35,610 units handed over to customers. Like petrol’s performance, this marked the fuel type’s biggest monthly drop since December 2021.

It also continues diesel’s run of double-digit declines, which stretches back to December 2024. The powertrain captured 13.9% of total new-car volumes, down by 3.8pp compared to 12 months ago.

In the year to date, diesel registrations fell by 23.3% to 211,327 units. This gave the fuel type a 15.1% share, a drop from its 18.7% market hold during the same period in 2024.

Adding together petrol and diesel figures, the ICE market slumped by 33.9% last month, with 108,625 deliveries. This marked the powertrain groupings’ biggest year-on-year decline since February 2022, despite recording its highest monthly volume total since November 2024.

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Excluding ICE models from Germany’s new-car registration total in June would have seen a complete change in fortunes, as the market would have grown by 11.1%. The powertrain grouping accounted for 42.4% of overall volumes, a drop of 12.9pp year on year.

From January to June, ICE models suffered a 26.3% fall in deliveries, posting 608,760 units. This translated to a 43.4% share, down from 56.1%.

Hybrid market stabilises

Hybrids, including both full and mild hybrid powertrains, recorded a marginal 1% growth in June, reaching 73,332 registrations. This was a gain of 753 units compared to 12 months prior. June represented the technology’s smallest growth so far in 2025.

However, it continues its growth streak, which began in September 2024. Hybrids made up for 28.6% of total new-car deliveries, up by 4.2pp year on year. This also made hybrids the leading powertrain in Germany, by just 0.1pp.

Across the first five months of 2025, the technology has seen a 9.9% increase in volumes to 399,966 registrations. This gave hybrids a 28.5% share in the year to date, up from 24.7%.

Despite having taken over as the leading powertrain type in March 2025, hybrids have been unable to pull away from petrol. The gap has consistently sat between 0.4pp and 0.2pp since then.

Adding hybrids into the EV powertrain mix, the electrified market grew by 11.2% last month, handing 146,103 new models over to customers. The powertrain grouping possessed 57% of overall deliveries, an increase of 12.8pp on June 2024. This was its highest share of 2025 so far.

In the first half of the year, volumes of electrified models improved by 23.5%, thanks to 787,597 registrations. This gave the powertrain grouping a 56.1% share, up from its 43.3% market hold in 2024.

Off the gas

The ‘others’ category, including hydrogen fuel-cell electric vehicles, natural gas and liquified petroleum gas vehicles, E85/ethanol and other fuels, dropped by 1.7% in June. According to Autovista24 calculations, the category made up for 0.6% of total volumes, up 0.1pp year on year.

Across the first five months of the year, the powertrain grouping endured a 20.7% fall in deliveries to 6,401 units. However, its 0.5% market share is stable from the same period in 2024.

Spain has proven to be Europe’s most stable new-car market in recent months, with May proving no different. As the country experienced record electric vehicle (EV) uptake, Autovista24 special content editor Phil Curry examines the latest performance.

For the ninth consecutive month, Spain’s new-car market saw registrations increase. With 112,820 deliveries to customers in May, new-car figures were up 18.6%, according to industry association ANFAC.

While the rest of Europe’s big five markets have seen registration figures fluctuate this year, Spain has proven to be the most stable. Registrations have benefitted from the replacement of cars after severe storms hit the Valencian community last year. However, recent months have also seen a surge in EV registrations.

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The strong performance means that Spain’s new-car market was up 13.6% over the first five months of the year. A total of 490,709 models have taken to the country’s roads in that time, according to Autovista24 calculations.

‘It is positive news that sales are maintaining this pace. On the one hand, due to the renewal of the fleet, which is no longer driven by diesel and petrol, but by conventional and electrified hybrids. On the other hand, due to the increase in sales of electrified vehicles, which allows us to continue making progress towards the emissions reduction target,’ commented Félix García, director of Communications and Marketing at ANFAC.

‘Once again, the boost from both sales in the [storm damaged] DANA zone in Valencia has helped. The strong growth of the electrified market has also driven the figures. In May, electrified registrations reached a record with nearly 20% of the market.

A record for PHEVs

Spain has lagged behind other major markets when it comes to EV registrations. Deliveries of both battery-electric vehicles (BEVs) and plug-in hybrids (PHEVs) have struggled in the country.

However, the market has picked up momentum following the reintroduction of the country’s MOVES III incentive programme for this year. With subsidies now in place for EV sales, and retroactively applied to EV purchases from the beginning of the year, registrations are improving rapidly.

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PHEVs led the way for EVs during May. The powertrain saw figures improve by 169.4% year on year. In total, 12,895 new models took to the country’s roads according to Autovista24 calculations, an increase of 8,108 units.

Even without the MOVES III incentives, the plug-in powertrain has been increasing its hold on the market across the year. May saw it reach an 11.4% share of total registrations. This was up by 6.4pp compared to the same period last year. The results marked the first time the technology achieved registration figures in five digits.

Over the first five months of 2025, PHEV registrations jumped by 66.5%, with 42,536 deliveries. This has given the technology an 8.7% market share, up from the 5.9% recorded by the same point in 2024.

Electric cars double up

While not achieving the high volume of PHEVs, the BEV market also saw growth above 100%. With 8,969 registrations, the all-electric technology improved by 104.2% in May, according to Autovista24 calculations. This gave it an 8% share of the market, up by 3.4pp.

In the year-to-date, BEVs achieved the best growth of the major powertrains. Figures were up by 78.6% across the first five months of the year.

Combined, the EV market saw growth of 138.2% last month, with 12,685 more BEVs and PHEVs finding their way to customers. This meant EVs took a record 19.4% market in May, up by 9.8pp. In the year to date, EV registrations were up 71.8%, while the market share of 15.8% was up by 5.3pp.

Reducing emissions, boosting electric

These increases are a big boost for Spain, which wants to reduce the average age of its fleet and decarbonise. The country saw average CO₂ emissions from new cars sold in the month fall to 104.1g/km. This equates to a decline of 12.6% compared to the same month in 2024.

Across the first five months of the year, average emissions stood at 108.8g/km. This was a drop of 7.6% when compared with the same period last year.

‘May marked an important milestone in the advancement of electrification. With more than 20,000 sales in one month, it represented nearly 20% of the market, a record in the Spanish market,’ commented José López-Tafall, CEO of ANFAC.

‘We must continue working because our objective cannot be just to grow, but first to match, and then surpass, the European average, as befits a country that wants to be a hub for electrification and attract investment. Therefore, measures to improve the effectiveness of subsidies, or to signpost and highlight the significant charging network already available, are decisions that will allow us to take even greater advantage of this positive momentum of progress for electrified vehicles,’ he added.

ICE downfall continues

While EVs enjoyed a strong month, their success came at the expense of the internal-combustion engine (ICE) sector.

Petrol-powered cars have been in decline for some months. In May, a total of 33,643 units were delivered, according to Autovista24 calculations. This was a 15.5% fall compared to the same period in 2024. The performance left the powertrain with a 29.8% market share, some way off the 41.8% recorded in May 2024.

While the figures made petrol the second-most-popular powertrain in Spain, it is no longer the dominant force it once was. Between January and May, a total of 153,407 units have taken to Spanish roads, a drop of 13.3%. This left the technology with a 31.3% share of the year-to-date registrations total, a fall of 9.7pp.

Meanwhile, diesel deliveries fell by 40.2% in the month, with just 5,855 models finding their way to customers. This gave the technology a 5.2% market share, a fall of 5.1pp.

Until December 2024, diesel was Spain’s third most popular fuel type. This went against trends seen in other major European markets where sales had slumped significantly. Yet in the last six months, it has been comfortably outpaced by BEVs, while PHEVs overtook the technology in January of this year.

In the first five months of 2025, diesel registrations fell by 35.7%, with just 27,685 deliveries. This left the powertrain with a 5.6% market share, a drop of 4.4pp.

These poor results meant that in May, the ICE market declined by 20.4% to 39,498 units. This left it with a 35% hold of the total volume, down by 17.1pp. In the year to date, ICE deliveries fell by 17.7% to 181,092 units. The 36.9% market share fell by 14.1pp in a 12-month period.

Hybrids prove popular

The hybrid market, made up of full and mild versions, led the way in Spain during May. According to Autovista24 calculations, 44,981 new hybrid passenger cars took to the country’s roads, representing a 32% year-on-year increase.

Hybrids have been the country’s most popular powertrain type since July 2024, and have firmly established themselves in that time. Last month, they took a 39.9% share of the market, up by 4.1pp.

This was, however, the lowest market share for the powertrain so far this year. It was the first time its share dipped below 40% since taking the market lead from petrol. This was mostly due to the improvement in the EV market, rather than buyers moving away from the technology.

In the year to date, a total of 207,272 new hybrids made their way on to Spanish roads. This was up 35% compared to the first five months of last year. This represented 42.2% of the market, an improvement of 6.6pp.

Combining hybrid and EV figures, the total electrified vehicle sector saw growth of 54.5% in May, with 66,846 models delivered. This represented 59.3% of all deliveries in the month. Between January and May, electrified registrations improved by 43.3%, with 284,838 units finding their way to customers. This gave the technology a 58% market share, up by 12pp compared to the same period last year.  

New car registrations in Germany returned to growth in May, as electric vehicles (EVs) propelled the market forward. Could new battery-electric vehicle (BEV) tax incentives provide an extra boost? Tom Hooker, Autovista24 journalist, reviews the latest figures.

A total of 239,297 new cars took to German roads in May, an increase of 1.2% year on year. This was an improvement of just 2,872 units from one year prior. It marks the first time the market has enjoyed growth since October 2024.

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According to the figures provided by the KBA, private registrations grew by 2.4% and represented 32.8% of overall deliveries. Meanwhile, the commercial sector increased volumes by 0.7% last month, taking a 67.1% market share.

However, new-car deliveries were still down by 2.4% in the year to date, reaching just under 1.15 million units.

‘The slightly positive development in new registrations gives hope for a recovery of an overall market that was still below the previous year’s level,’ commented VDIK president Imelda Labbé.

Germany’s production in peril?

However, hope of a recovery may be threatened by production disruptions. China has placed export restrictions on rare earth magnets that are widely used within the automotive industry. This could disrupt, or even halt, German car production, said VDA president Hildegard Müller in a statement to Reuters.

A few rare earth producers, including Volkswagen’s suppliers, have been issued permits by China. However, this is not enough to ensure the adequate supply of components needed for smooth production.

Mercedes-Benz is talking to suppliers about building a rare-earth stockpile, according to Reuters. Carmakers, diplomats and other executives from Europe are seeking meetings with Beijing officials to lobby for faster approvals of rare earth magnet exports.

BEV growth drives market

Registrations of BEVs soared in May, rising by 44.9% to 43,060 units. This marks five months of consecutive double-digit growth for the technology. Excluding BEVs from the overall market results in a drop of 5.1%. The powertrain accounted for 18% of deliveries last month, up 5.4 percentage points (pp) compared to May 2024.

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‘A total of 201,563 BEVs were delivered from January to May, equating to an impressive registration improvement of 43.2% year on year. This corresponded to a market share of 17.6%,’ outlined Robert Madas Autovista Group’s regional head of valuations.

Government’s investment boost

The German government has launched a package of tax breaks for companies, in an effort to stimulate investment. Included in the package is a special depreciation allowance for BEVs purchased between July 2025 and December 2027.

Companies buying a new BEV will enjoy a depreciation allowance of 75% in the first year of purchase, wrote electrive. 10% could be deducted in the following year and 5% in the second and third years. The allowance would be 3% in the fourth year and 2% in the fifth year.

‘The draft law of the immediate investment program gives important signals for investments in electromobility. The planned tax incentives for the promotion of BEVs can provide valuable and sustainable impetus for the market development of e-mobility,’ stated Müller.

‘Above all, the planned 75% depreciation in the year of purchase of a BEV used for business purposes can provide effective support here,’ she said.

The VDIK called for plug-in hybrids (PHEVs) to be included in the measure. Meanwhile, other industry figures noted that the incentive may not provide a dramatic improvement.

‘The depreciation options of this investment impulse for electromobility are limited in their effect. They only benefit those who can actually use them for tax purposes. Private households or leasing companies, for example, do not benefit,’ outlined acting president of the ZDK Thomas Peckruhn.

‘All in all, it is a measure that does not do any harm but also does not bring any drastic improvement. It’s a first step, but nothing more,’ he said.

Labbé shared a similar opinion. ‘We see the investment program as a first strong step towards boosting the German economy. However, this tax measure does not achieve enough for the ramp-up of electric mobility,’ she commented.

‘This is because it addresses only the commercial business and even there not the leasing business, which accounts for the majority of registrations,’ Labbé added.

Further tax incentives

Furthermore, the gross price limit for EVs as company cars will be increased from €70,000 to €100,000 for the taxation of company cars at 0.25%.

‘We also see the increase in the cap on the gross list price for company car taxation for BEVs as positive. Company cars are an important driver of e-mobility in Germany,’ noted Müller.

‘The measure will also strengthen the used-car market for BEVs because company cars will be available as used cars at a low price after the leasing period has expired,’ she highlighted.

In their response to the announcement, industry bodies also called for further incentives to boost EV sales.

‘We urgently need cheaper charging electricity prices, for example by reducing taxes on electricity to the European minimum rate and significantly reducing grid fees. The public charging infrastructure must also be further expanded, and bureaucratic hurdles in the construction of private charging points must be removed,’ stated Peckruhn.

‘In the VDA’s view, the general tax framework for the leasing of EVs should be improved. It is also important to note that the coalition partners must now promptly initiate the extension of the current motor vehicle tax exemption for EVs until 2035, which they agreed on in the coalition agreement,’ explained Müller.

PHEV market surges

Despite BEV’s strong improvement, it was PHEVs that were the best-performing powertrain in May.

Registrations of the powertrain surged 79.4%, its biggest increase since December 2022. The result also continues its streak of double-digit growth so far this year. Its total of 25,181 deliveries gave it a 10.5% market share, up 4.6pp year on year.

Across the first five months of 2025, the technology enjoyed a 52.8% rise in volumes, reaching 113,287 units. It represented 9.9% of the new-car market, up from 6.3%. However, apart from the small volume ‘others’ category, it is still comfortably the least popular powertrain in Germany.

EVs on a charge

Combining BEV and PHEV delivery totals, the EV market saw a 56% improvement in registrations. A total of 68,241 new models were handed over to customers, delivering 24,495 more units than May 2024. This was the biggest monthly plug-in increase since August 2023.

Excluding EVs from the German new-car market would have resulted in a wider decline of 11.2%. The powertrain grouping captured 28.5% of overall volumes last month, up 10pp year on year.

EVs recorded growth of 46.5% in the year to date, with 314,860 units. This translated to a 27.5% share, up from 18.3%. In comparison, during the first five months of 2024, plug-in deliveries slumped by 6.7%.

‘The decline in subsidies for electric cars at the end of 2023 initially led to a slump in the first months of 2024. However, the recovery so far in 2025 shows that the market is increasingly developing independently of subsidies,’ highlighted Madas.

More budget EVs

Driving this improvement is a growing selection of budget EVs and a consistent rise in charging infrastructure.

For example, there are currently 9.1% more AC charging points available in Germany than at the end of June 2024. This is according to the latest figures from the European Alternative Fuels Observatory (EAFO). Meanwhile, the number of DC charging points surged by 29.6%.

‘The transition to electric mobility is accelerating. The growing portfolio of cheaper EVs and the increasing number of public charging points are positive,’ explained Peckruhn. ‘The reservations among private customers about buying an EV have decreased noticeably, we observe this in daily trading.

‘If manufacturers now announce their new releases for the coming year, especially in the compact and small car segments with appropriate pricing, this positive development could be promoted even further,’ he stated.

Petrol market continues decline

The petrol market continued its decline in 2025, enduring a 24.1% fall in May with 67,921 registrations. The fuel type has still yet to record growth this year. Petrol-powered cars accounted for 28.4% of the new-car market, down 9.5pp compared to one year prior.

From January to May, the powertrain saw a 26.1% drop in deliveries to 324,418 units. Removing petrol cars from the overall figure in the year to date would have resulted in growth of 11.8%. Petrol-powered cars took a 28.3% market share, down from 37.4%.

Diesel suffered a 21.8% decline last month, with 35,106 units, marking its sixth consecutive monthly drop. The fuel type made up 14.7% of total volumes in May, down 4.3pp compared to May 2024. This was also its lowest share so far this year.

In the year to date, a total of 175,717 diesel models have taken to the road, a decrease of 21.1%. This gave it a 15.3% market share, down from 19% during the first five months of last year.

Combining petrol and diesel registrations, the internal-combustion market (ICE) market fell by 23.3% in May, posting 103,027 units. The powertrain grouping recorded double-digit declines of at least 20% in every month so far this year.

ICE models represented 43.1% of the market, down 13.7pp compared to 12 months prior. This was its largest loss in share since December 2022. In the year to date, the powertrain grouping slumped by 24.4%, with 500,135 registrations. It took a 43.6% share across the first five months of the year, down from 56.3%.

Help from hybrids

Hybrids, including both full and mild hybrid powertrains, enjoyed a 16.7% rise in deliveries in May. This was the biggest increase for the technology in 2025 so far. It also represents its ninth month of consecutive growth.

A total of 66,990 hybrids were handed over to customers last month, holding a 28% share. This was 3.7pp ahead of its market hold in May 2024. However, it was also the first time hybrids had fallen back behind petrol’s share since January.

Across the first five months of the year, hybrids recorded 326,634 deliveries, an improvement of 12.1% compared to the same period in 2024. It accounted for 28.5% of the overall registration total, up from 24.8%.

Adding hybrid volumes to the EV figures, the electrified market grew by 33.7% last month, reaching 135,231 units. The category represented 56.5% of total deliveries in May, up from 42.8%. From January to May, the electrified market surged by 26.7% to 641,494 units.

According to Autovista24 calculations, the ‘others’ category saw deliveries improve by 18.7% in May, posting 1,039 units. This gave it a 0.4% market share, stable from 12 months prior.

Across the first five months of the year, a total of 4,936 models with an alternative powertrain took to Germany’s roads, down 25% compared to the same period last year. The category captured 0.4% of the market, down from 0.6%.

In April, registrations of new cars in the EU improved for the first time this year. Both battery-electric vehicles (BEVs) and plug-in hybrids (PHEVs) helped push the market forward. Tom Hooker, Autovista24 journalist, reviews how each powertrain performed.

The EU saw 925,359 new cars delivered to customers in April. This represented an increase of 1.3% year on year, giving the bloc its first month of growth in 2025.

According to ACEA data, out of the 27 EU member states, 16 recorded improvements, six of which were double-digit rises. From the remaining 11 nations that suffered a decline in registrations, four recorded a drop of more than 24%. However, three of these were low-volume markets.

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The EU’s big four markets had contrasting fortunes, with France and Germany suffering respective declines of 5.6% and 0.2%. On the other hand, volumes in Italy improved by 2.7%, while Spain surged by 7.1%.

Comparing the combined delivery total of these four countries to their April 2024 figures results in a net loss of 1,547 units. So, where did last month’s EU growth come from?

Smaller markets prevent decline

Looking at the month’s five-digit markets, there were some notable registration declines. Belgium posted a drop of 4.8%, the Netherlands fell 4%, and volumes in Denmark decreased by 1.3%.

In contrast, deliveries in Austria surged by 16.5%, Sweden grew by 10.5%, Greece was up 9%, Czechia increased by 8.6%, Portugal improved by 8.2%, Poland rose by 5.8% and Hungary was up 3.6%.

Comparing these markets’ combined figures with their performance from one year ago equated to a gain of 9,888 units.

However, EU registrations were still down 1.2% in the year to date. A total of 3.64 million new cars were handed over to buyers in this period. This left a gap of 42,488 deliveries compared with last year.

The big four contributed to most of the difference, with a net 36,112-unit loss. This was largely caused by a 7.3% fall in French registrations, while Germany and Italy suffered declines of 3.3% and 0.6% respectively. However, Spain prevented an even worse drop, improving volumes by 12.2% from January to April.

BEVs best in EU market

BEVs were the best-performing powertrain in April. The technology saw registrations soar 34.1% compared to 12 months ago, reaching 145,341 units.

This was an increase of 36,919 deliveries year on year. It also marked BEV’s biggest percentage gain since October 2023. Removing the powertrain from the EU’s new-car market would have resulted in a 3.1% decline.

The technology took a 15.7% market share, up 3.8 percentage points (pp) year on year. This was its highest share recorded so far this year.

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The three largest all-electric markets in April were Germany, France and Belgium. They saw volumes improve by 53.5%, 35.8% and 2.8% respectively.

Meanwhile, Italy recorded the second-highest BEV growth out of all member states, surging 108.2%, as registrations in Spain grew 78%. However, while members of the big four overall, both these markets regularly see smaller monthly BEV volumes.

Both countries’ all-electric totals still trailed Denmark, Sweden and the Netherlands. These member states achieved increases of 45.5%, 25.8% and 1.8% respectively. Overall, only five EU nations suffered a BEV decline, albeit with smaller totals of the powertrain.

The technology grew by 26.4% in the first four months of the year, thanks to 558,262 registrations. BEVs captured 15.3% of the new car market from January to April, up from 12%.

Four countries saw all-electric volumes fall, three of which were the low-volume markets of Estonia, Malta and Romania. However, the fourth was the second-biggest BEV market of France, declining 4.4% in the year to date.

Meanwhile, the powertrain’s largest market, Germany, surged 42.8% in the four-month period. In smaller-volume BEV regions, the best result came from Italy, with deliveries rising 79.4%.

This was followed by Spain with a 71.2% increase, then Denmark up 56.8%, Austria up 41.6%, Belgium up 31.3%, Portugal up 29.8%, Ireland up 25.4%, Sweden up 16.6% and the Netherlands up 6.4%.

EU phenomenal PHEV performance

PHEVs also enjoyed a strong result in April, with 81,554 registrations equating to a year-on-year growth of 31.2%. This was the biggest monthly percentage increase since ACEA began monthly reporting of individual powertrain figures in January 2023.

PHEVs accounted for 8.8% of new-car registrations in April, up by 2pp and marking its highest share so far in 2025.

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With a gain of 60.7% and 9,182 units compared to April 2024, Germany boosted the technology’s total and comfortably remained its biggest market. Spain and Italy also saw significant growth of 80.3% and 77% respectively, making them the third and fourth most popular PHEV states. In contrast, France endured an 11.7% decline.

Other notable increases came from Poland and Austria, which improved volumes by 115.9% and 87.6% respectively. Elsewhere, deliveries in the Netherlands rose by 41.4%, Ireland grew by 23%, Portugal increased by 20.4%, and Sweden improved by 19.3%. However, Belgium saw PHEVs drop by 48.5% last month, with Cyprus, Denmark and Malta the only other markets to suffer declines.

Spain overtakes France

The powertrain enjoyed a 7.8% rise in deliveries across the first four months of the year, posting 287,850 units. PHEVs made up 7.9% of the overall delivery total, up from 7.2%. The two leading PHEV markets experienced growth, with Germany surging 46.6% and Spain up 42.8%.

The latter was narrowly ahead of France across the first four months of the year. France was comfortably the second-biggest PHEV market in 2024, but saw registrations slump by 41% in the year to date. Belgium’s share of the market also slipped, with volumes decreasing by 61.6%.

The other notable markets to record growth were led by Ireland with a 55% improvement. This was followed by Austria’s 43.1% increase, while Italy was up 41.8%, the Netherlands grew by 18.4% and Sweden rose by 14.3%.

Combining BEV and PHEV volumes, the electric vehicle (EV) market grew by 33% year on year in April, with 226,895 registrations. This equated to a gain of 56,301 units. Without plug-ins, the new-car market would have declined by 6% last month.

The powertrain grouping took a 24.5% share, an improvement of 5.8pp compared to April 2024. This also marked its highest share so far this year. From January to April, EV deliveries have increased by 19.4%, reaching 846,112 units. Plug-ins captured 23.2% of EU volumes, up from 19.2%.

Hybrids lead the EU

Hybrids continued to comfortably lead the EU’s new-car market. With figures made up of mild hybrids and full hybrids, the technology saw volumes rise by 20.8% in April. In total, 320,725 units were delivered to customers.

This gave it a 34.7% share, up 5.6pp year on year. However, due to the strong performance of EVs, this was its lowest monthly share so far in 2025.

France saw the biggest increase out of the five-digit hybrid markets, improving on its April 2024 figure by 37.7%. Spain also enjoyed a significant increase of 33.6%. Italy saw volumes of the powertrain rise by 14.2%. April’s highest-volume hybrid country, Germany, managed a 12.2% growth compared to one year prior.

Six markets faced a drop in the technology last month, most notably in the Netherlands where volumes slumped 10.4%.

Italy narrowly beats Germany

Across the first four months of the year, hybrid deliveries rose by 20.8%, posting 1.28 million units. This was a gain of 220,952 registrations compared to the same period in 2024. The powertrain represented 35.3% of total registrations, up from 28.9%.

Hybrid registrations declined in seven member states from January to April. However, six of these were low-volume markets, with the other drop coming from the Netherlands, which fell by 9.2%.

Italy was the highest-volume hybrid market in the year to date, with registrations growing by 15%. It beat Germany’s total by just 259 units, as the country saw volumes of technology improve by 11%. France also enjoyed a 44.9% improvement, while Spain was up by 35.8% year on year.

Adding hybrids to the EV total, the electrified market grew by 25.6% in April, with 547,620 units. This equated to a gain of 111,535 registrations year on year. The powertrain grouping took a 59.2% share of new-car deliveries, up 11.5pp from April 2024.

During the first four months of 2025, electrified volumes soared 20.2%, thanks to 2.13 million units. The sector captured 58.6% of the market in this period, up from 48.2%.

Petrol’s sharp EU drop

Petrol-powered cars endured a 20.6% decline last month, with 261,709 units. This equated to a 28.3% market share, down 7.8pp year on year.

Six countries achieved growth, while the rest recorded sharp drops, such as Germany, which saw deliveries decline by 26.4%. Italy posted a less severe slump of 9.8%, while petrol-powered volumes in Spain fell 20.4%. France also struggled, with last month’s figure of 38.8% down on its total from 12 months previously.

From January to April, petrol-powered registrations declined by 20.6%, with 1.04 million units. This gave it a 28.6% market share, down from 35.6%. The EU’s big four all suffered slumps in this period. France was the worst affected, dropping 35.2%. Germany saw its petrol market decrease by 26.6%, while Italy declined by 14.4% and Spain was down by 12.7%.

Deliveries of diesel-powered cars dropped by 24.4% last month, with 88,974 units. However, this translated to a 9.6% market share, an improvement of 3.3pp compared to 12 months prior.

Diesel’s biggest market, Germany, saw registrations fall by 18.7%. Meanwhile, the only other five-digit country for the fuel type, Italy, slumped by 26.3%. Overall, just five countries posted growth, although these were all lower-volume markets.

In the year to date, registrations of diesel-powered cars dropped 26.4% to 348,050 units. The powertrain accounted for 9.6% of overall volumes across the first four months of the year, down from 12.8%.

Adding together petrol and diesel volumes, the internal-combustion engine (ICE) market endured a 21.6% slump in April, with 350,683 units. The powertrain grouping accounted for 37.9% of the market, down by 11pp year on year.

A total of just under 1.39 million ICE models were registered in the year to date, falling 22.1% compared to the same period in 2024. This gave it a 38.2% market share, down from 48.4%.