Topic: Europe

Electric vehicles (EVs) enjoyed exceptional growth in Italy during April, up by over 100% year on year. While this is a promising performance, it might not be a fair comparison. Autovista24 editor Tom Geggus explains.

At first glance, Italy’s new-car market is seeing a pronounced powertrain trend. Since the start of 2025, internal-combustion engines (ICEs) have suffered steep delivery declines. Meanwhile, EV registrations, including battery-electric vehicles (BEVs) and plug-in hybrids (PHEVs), have surged.

However, these plug-in models have struggled to make up for the shortfall in petrol and diesel figures. This is due to their relatively lower volumes and market share. With hybrids, including full and mild variations, also recording growth, the Italian new-car market is only just remaining stable.

In April, registrations were up by 2.7% year on year with 139,142 units delivered. According to the data from ANFIA, this equated to 3,685 more new cars than in the same month last year. With declines in January and February, followed by growth in March, the market fell in the year to date.

In total, the country saw 583,221 new cars hit its roads between January and April. This equated to a year-on-year drop of 0.6%, with 3,561 fewer units being delivered.  But what does the current powertrain dynamic reveal about these figures?

Italy powertrain performance

In April, BEV registrations increased by 108.2% year on year, with 6,643 units delivered. This meant the powertrain’s market share effectively doubled from 2.4% in April 2024 to 4.8% last month.

In the year to date, the powertrain saw an increase of 79.4%, with 29,637 all-electric cars hitting the roads. This pushed the technology’s share to 5.1%, up by 2.3 percentage points (pp) from the same point in 2024.

PHEV deliveries increased by 77% compared to April 2024, reaching 7,818 units and a market share of 5.6%, up 2.3pp. Between January and April, the powertrain saw growth of 77%, with its hold on the market increasing by 2.3pp to 5.1%.

‘Looking at powertrains, the good trend in registrations of plug-in cars and, particularly for BEVs, continues,’ said ANFIA president Roberto Vavassori. ‘Although this was still with very moderate market shares.’

An EV boom in Italy?

These results meant EVs claimed a 10.4% market share in Italy during April, up 4.8pp. A total of 14,461 new plug-ins were registered in this period, an increase of 90.1% year on year. The growth was not as sharp in the year to date, rising 59.5% to 56,070 units. This allowed the powertrain grouping to take a 9.6% share, up 3.6pp.

The plug-in share in Italy is still significantly lower than other major European markets. In the year to date, EVs captured market shares of 30.3% in the UK and 27.2% in Germany. France saw plug-ins represent 23.6% of all deliveries, while Spain recorded 14.7% EV share.

There is an even more important point to consider when examining Italy’s EV market. In late December 2023, the Italian Government confirmed the return of EV purchase incentives, known as the Ecobonus.

However, the scheme did not come into effect until June. This meant that in the first five months of the year, EV buyers held off on their purchases. Registrations of these vehicles were down significantly compared to 2023.

Therefore, the figures recorded so far this year have been compared to a far slower period for EVs, inflating growth. Once this comparative low point is at an end, a more balanced comparison should be possible. However, with ICE registration figures falling and plug-in deliveries climbing, there is clearly an increasing acceptance of electrification in Italy.

Hybrid high

Hybrids were once again the dominant powertrain in Italy last month. The technology accounted for 44% of all new cars sold, up from its 39.6% share recorded 12 months prior. Deliveries were up 14.2%, reaching 61,216 units.

In the year to date, the powertrain grouping recorded 259,903 registrations. This equated to year-on-year growth of 15% and a market share of 44.6%, up 6.1pp.  

Adding these figures to the overall EV numbers shows that over half of all new cars were electrified in Italy last month. The 54.4% share was up from 45.2% in April last year. Its total of 75,677 deliveries was up by 23.7%.

In the first four months of the year, electrified registrations of electrified powertrains climbed 21%. The 315,973 units made up 54.2% of Italy’s new-car market, up 9.7pp.

On thin ICE

In contrast, ICE-powered vehicles saw registrations fall in April, down 15% year on year. The 52,454 units made up 37.7% of the market in the month, down from a 45.6% share in April 2024. In the year to date, the grouping made up 36.9% of all deliveries, down 9.1pp. Deliveries fell by 20.2% between January to April, reaching 215,270 units.

Broken down, petrol-powered vehicle registrations dropped by 9.8% to 38,121 units. This meant they made up 27.4% of the market, down from 31.2% a year earlier. In the year to date, the fuel type suffered a 14.4% dip to 156,239 vehicles. This equated to a 26.8% share, down 4.3pp.

Meanwhile, diesel models saw a greater drop of 26.3% to 14,333 units and a 10.3% market share, down 4pp. In the year to date, the powertrain took a 10.1% share compared to a 14.9% hold from 12 months prior. Registrations reached 59,031 units in the first four months of the year, down 32.4%. 

The Spanish new-car market’s strong run continued in April, as electric vehicles (EVs) benefitted from a new round of incentives. Autovista24 special content editor Phil Curry examines the latest registration figures from Spain.

Spain’s new-car market continued its run of growth in April. Registrations in the country were up 7.1% in the month, as 98,522 passenger cars took to the country’s roads.

The latest data from industry association ANFAC shows a market in its ascendancy. April was Spain’s eighth consecutive month of growth. Other major European new-car markets have seen turbulence in this period. However, the Spanish result makes it the strongest in the region in terms of performance.

April 2024 was also an anomalous month, with deliveries bouncing back after the early Easter. This makes the month’s results even more impressive. Yet compared with April 2023, which also featured an Easter break, the Spanish market improved by 31.8%.

The country had its own challenges in April. A nationwide power outage closed businesses and prevented registrations, although this did not significantly impact results. Instead, a renewal of the country’s MOVES III incentives for EVs has boosted the sector.

In the first four months of 2025, Spain’s registration figures were up by 12.2%, with 377,900 units delivered. It is the only market in the big five to have achieved growth during this period.

Encouraging times for Spain

‘The massive blackout had no impact on the market, as the units not registered that day were registered on subsequent days. The boost in sales in the Valencian community due to the Reinicia Auto+ plan for vehicles affected by the [severe storms last year] continues to be a significant stimulus for the market,’ commented Félix García, ANFAC’s director of communications and marketing.

‘Spain has managed to maintain the positive pace of registrations, backed by the good economic data that drives demand in the private market,’ added Ana Azofra, regional head of valuation and insights at Autovista Group.

‘This is helped by incentives such as the MOVES plan and other regional plans. The momentum of rental companies, so relevant in the Spanish market, is driving registrations while also rejuvenating the used-car market.

‘It is also worth highlighting the growing importance of electrified vehicles, which again grew significantly this month. They achieved a share of 16.2%, bringing Spain a little closer to other European markets. The entry of new players and greater price competitiveness are also behind this good performance,’ she concluded.

PHEVs push forward

The MOVES III programme extension added €400 million to the budget, with applications retroactively applicable from 1 January 2025. The incentive scheme will be available to buyers until 31 December 2025. Buyers can receive up to €7,000 towards the purchase of an EV, if they scrap another vehicle.

The extension was announced at the beginning of April, and has helped boost an EV market that was already growing. Spain’s battery-electric vehicle (BEV) and plug-in hybrid (PHEV) registrations are some of the lowest among the big five European markets. Belgium and the Netherlands often outperform the country when it comes to EV volumes. However, numbers are now on the up.

In April, PHEV registrations increased by 80.3%, with 9,123 units delivered, according to Autovista24 calculations. The powertrain was the best-performing technology in terms of year-on-year growth.

The result gave PHEVs the third-biggest market share in the country, with 9.3% of the total registrations. This was 3.8 percentage points (pp) higher than April 2024.

In the first four months of 2025, PHEV registrations improved by 42.8%, with 29,635 deliveries. This equated to a 7.8% hold on the market, up from 6.2% recorded in the same period last year.

BEVs also saw phenomenal growth. Deliveries of all-electric powertrains improved by 78% last month, with a 6,837-unit total. This gave the technology a 7% market share, up by 2.8pp.

Between January and April, BEVs saw deliveries increase by 71.2%. The technology accounted for 6.9% of registrations in this period, up by 2.4pp year on year.

Impressive EV figures

With such high growth for each plug-in powertrain, the EV market enjoyed a strong April. Registrations were 79.3% higher compared to the same month last year, as drivers in the country begin to embrace the technology. This equated to 7,059 more EVs taking to Spanish roads, based on Autovista24 calculations.

With this result, the powertrain grouping enjoyed its best market share of the year. In total, 16.2% of all passenger cars registered in Spain were plug-in models, up from 9.7% in April 2024.

This performance means that in the year to date, 19,719 more EVs were delivered to customers, up 54.8%. The 14.7% market share was up 4pp compared to the same period last year.

‘Electrification continues at a good pace in 2025, driven by the renewal of the MOVES scheme and the launch of new, more affordable models. The announcement, at the beginning of April, of the continuation of the MOVES plan is a message to citizens to continue investing in pure electric and plug-in hybrid vehicles,’ commented José López-Tafall, general director of ANFAC.

‘This is necessary because we are still well below the European average, which is recovering. We must accelerate and continue strengthening electrification, with more efficient tools that incentivise purchases, and by reducing the deployment times of charging points, especially high-power ones.

‘Electrification must also be visible not only to current users, but also to potential users. Therefore, increasing signage for the many charging points and charging stations that already exist on the roads is urgent,’ he added.

Hybrids remain on top

The hybrid market, made up of full and mild hybrids, was the market leader in volume terms during April. The technology is comfortably the most dominant powertrain, and once again saw impressive growth.

Registrations were up 33.8%, with 40,739 units taking to the road. This was a rise of 10,300 passenger cars, and gave the technology a 41.4% market share. In the same month last year, hybrids achieved a 33.1% hold.

Across the year to date, hybrids saw figures improve by 35.9%, according to Autovista24 calculations. A total of 162,297 units equates to a market share of 42.9%, up from 35.5% in April 2024.

Combining the hybrid and EV markets, electrified vehicles led the way in Spain during the month. Registrations were up 44.1%, equating to a 17,358-unit rise. With 57.6% of the market, this group has established itself as the leading powertrain, ahead of the internal-combustion engine (ICE).

Over the first four months of the year, electrified registrations increased 40.3%, with 62,557 more models delivered. The market has achieved a 57.7% share, up from 46.2% seen between January and April 2024.

Petrol struggles worsen in Spain

Spain’s registration rise owes everything to the performance of electrified powertrains. The ICE market has struggled this year, with April’s figures proving to be the worst performance so far.

Petrol has been in decline in the country. However, April saw its worst performance for some time, with a 20.5% drop in registrations. In total, 31,990 units were delivered, representing 32.5% of the market.

In the same month last year, petrol accounted for 43.7% of registrations, making it the dominant fuel type. It has since been overtaken by hybrids, making it the second-most-popular technology in the country.

In the first four months of 2025, petrol registrations declined by 12.7%, with 119,753 registrations. This equated to a 31.7% market share, down 9pp compared to the same period in 2024.

Meanwhile, diesel was once again the least-popular powertrain in Spain. Registrations were down by 38.3%, equating to 3,443 fewer deliveries. In total, 5,557 units made their way to customers, according to Autovista24 calculations. This gave the technology a 5.6% share, dropping 4.2pp.

Between January and April, diesel deliveries declined by 34.4%, with 21,883 registrations. The market share of 5.8% was down from 9.9% recorded in the same period of last year.

Combined, the ICE market saw registrations slide 23.7% last month, a loss of 11,685 units. In the year to date, deliveries are down 17%, with 28,908 fewer units taking to Spanish roads.

The EU’s new-car market continued its sluggish trend of registrations in 2025 during March. However, these results suggest an improvement may be around the corner. Autovista24 special content editor Phil Curry assesses the latest figures.

The EU’s new-car market suffered another decline in March, marking a first-quarter struggle in 2025. However, the month’s 0.2% dip in registrations only equated to 2,370 fewer units delivered across the 27 member states. When adding in the EFTA and UK regions, the European market grew by 2.8%.

The latest data from ACEA shows a total of 1,029,520 units were delivered to EU customers in March. This is down in what is typically a high-volume period.

Both France and Germany recorded drops in the month, of 14.5% and 3.9% respectively. It was left to fellow big four markets Spain and Italy to pick up the pace. They did so, with respective rises of 23.2% and 6.3%.

Results across the smaller-volume markets caused ripples that led to the almost static year-on-year result. The Netherlands, down 14.8%, and Belgium, down 10.2%, struggled. Yet, Czechia and Poland countered these losses, with growth of 19.3% and 6.3% respectively.

In the first three months of 2025, the EU market suffered a 1.9% decline, equating to 53,974 fewer units compared to the first quarter of 2024. A total of 2,715,008 passenger cars took to the bloc’s roads in the period.

New-car market’s fine balance

The result highlights how finely balanced the new-car market in the EU is. While electric vehicle (EV) and hybrid registrations continue to improve, the internal-combustion engine (ICE) market is struggling.

This may be a result of the EU’s CO₂ emission regulations, which came into effect at the start of this year. Carmakers have a stricter target of average CO₂ levels per kilometre across their fleets. For some, the best course of action has been to limit the number of petrol and diesel models available.

That decision has a knock-on effect. While electrified vehicle popularity is growing, and more carmakers are adding these powertrains to their fleets, it is not enough to make up for the reduction of ICE models.

Registrations of hybrids and EVs combined have seen strong double-digit growth in each month of the first quarter. However, this has not been enough to offset the declines in the ICE market.

Yet, things may start to change in the coming months. While the stricter rules still exist, the EU Commission has now allowed carmakers to spread their results over three years. This means one bad yearly result can be made up in the corresponding years.

It remains to be seen how this change will influence carmaker strategy. Will they provide more of the profitable ICE variants, or stay sustainable on the electrified path?

ICE cracks 

Petrol registrations plunged 20.7% in March, with 290,396 deliveries. This was the second month in succession that figures fell by more than a fifth. The result left the powertrain with a 28.2% market share. This hold is petrol’s lowest-ever market share, and a 7.3 percentage point (pp) drop on the same month last year.

Petrol’s decline was driven by a 44.2% fall in France, while Germany saw figures drop 29.4%. Only three countries saw petrol registrations improve, albeit on low volumes. Cyprus was up 38.7% to 706 units, while Czechia saw 12.1% more deliveries, with 10,710 units. Latvia had the biggest rise, of 33.2%, but with a volume of just 1,361 deliveries.

The overall figure means that in the first quarter, petrol registrations fell 20.6%, with a 28.7% market share. This was a drop of 6.8pp compared to the first three months of 2024.

Meanwhile, diesel registrations fell 25.5% in March, with 95,315 units. The fuel type’s 9.3% market share was down 3.1pp year on year. During the first quarter, diesel deliveries were down 27.1%. It recorded a 3.3pp drop in market share during this period to 9.5%.

The fall of both powertrain types meant that the ICE market fell 21.9% in March. This equates to a difference of 108,312 units from 12 months ago. The technology made up 37.5% of total registrations, down from its 47.9% share in March 2024, and falling further away from the electrified sector.

In the first quarter, ICE registrations were down 22.3%, with 298,434 fewer deliveries. Its 38.3% market share equated to a drop of 10pp year on year.

Hybrids lead EU new-car market

While petrol and diesel registrations fell, all other powertrains enjoyed success in March. The biggest improvement went to hybrids, consisting of full and mild-hybrid powertrains. This sector grew 23.9% year on year, with 370,121 registrations.

The technology’s 36% market share was 7pp higher than in March 2024. This meant that the hybrid market continued to pull away from petrol as the market leader.

This growth was driven by France, with a 41.6% rise in registrations. This almost made up for the country’s shortfall in the petrol market. Italy was up 23.8%, while Germany also saw an 11.7% rise in hybrid deliveries.

In the first quarter, hybrids were up 20.7% compared to the same period last year, with 964,108 deliveries. This gave it a 35.5% hold of total registrations, up from 28.9% recorded in 2024.

Meanwhile, plug-in hybrids (PHEVs) saw registrations improve by 12.4% in March, with an 8% market share. The 82,111-unit total was not enough to beat diesel, meaning the powertrain remained the least popular major technology in the EU.

The PHEV market was not helped by a 49.1% drop in France, although a 65.8% improvement in Germany offset this result.

In the first quarter, PHEV deliveries were up 1.1% with 207,048 units. March’s result was able to drag the technology out of a year-to-date decline from the first two months. This also helped to improve the market share by 0.2pp to 7.6%.

BEVs are best

The EU’s battery-electric vehicle (BEV) market saw a 17.1% improvement in March, reaching 157,505 deliveries. The all-electric technology took a 15.3% hold of overall registrations, an improvement of 2.3pp year on year.

While France saw BEV registrations decline 13.9%, other markets witnessed stronger results. Despite often having lower results than other markets, both Spain and Italy saw big gains in the month. Spanish BEV deliveries increased 93% to 8,101 units, while Italian figures rose 74.8%, to 9,369 deliveries.

The other high-volume BEV market of Belgium also saw gains, of 16.6%. However, the Netherlands suffered a 14.1% drop in deliveries.

BEVs offer carmakers the best route to reduce CO₂ emissions, in line with their 2025 targets. However, with some countries having reduced their incentive schemes, the technology has faced some challenges in recent years. Yet, its performance in 2025 has been strong so far.

Across the first quarter, BEVs have enjoyed the biggest improvement out of all powertrains compared to the same period last year. Its 412,997-unit total is 23.9% higher than that achieved last year. The market share of 15.2% was up by 3.2pp year on year.

Shortfall remains

The EV market saw growth of 15.5% in March, improving volumes by 32,094 units. This performance gave a share of 23.3% in the month, up by 3.2pp compared to one year ago.

In the first quarter, the EV market increased deliveries by 15.2%, thanks to the strong results in the BEV market. This equated to an improvement of 81,868 units.

Adding hybrids to the EV sector, the electrified market grew 20.4% last month. The 103,379-registration improvement was just 4,933 units short of offsetting the ICE decline. In the first quarter, electrified models were up 18.5% compared to the same period last year. This equates to a 246,918-unit difference.

Italy’s new-car market bounced back to growth in March, with electric vehicles (EVs) continuing to perform strongly this year. Autovista24 special content editor Phil Curry examines the latest figures.

Italy’s new-car market recorded its first month of growth in 2025 during March, as the market looks to stabilise following eight consecutive losses.

Last month’s tally of 172,303 registrations was 6.3% up year on year, according to data provided by ANFIA. However, the figures compare against an anomalous month in 2024. With an early Easter period last year, many registrations were delayed into April.

However, compared to March 2023, which saw higher registrations due to the end of the supply-chain crisis, the results remain positive. The market achieved a 2.4% increase, highlighting the improvement last month.

‘After the declines in the first two months of 2025, in March the Italian car market improved its performance compared to the same month last year, which had the same number of working days,’ commented Roberto Vavassori, president of ANFIA.

Reducing Italy’s ageing parc

Italy’s electrified passenger-car market, made up of hybrids, battery-electric vehicles (BEVs) and plug-in hybrids (PHEVs), drove the market in March.

This boost comes following the announcement of a new European Action Plan, which has amended the period for CO₂ emission regulations to be met. Carmakers will now be able to average their figures over a three-year period, allowing more opportunities to avoid fines.

‘We hope that the European institutions will quickly adopt this proposal, which, although far from what our sector would really need, unblocks a stalemate that has become unsustainable,’ added Vavassori.

While the plan focuses on new vehicles, Vavassori believes more can be done to reduce the bloc’s aging car parc. By doing so, overall CO₂ pollution would be reduced as well.

‘To date, the European vehicle fleet, like the Italian one, has an average age of approximately 12.5 years, with high risks of accidents and certainty of pollution,’ he added.

‘Incentivising the replacement of the European vehicle fleet, and therefore also the Italian one, through well-designed financial and fiscal aid, supporting eco-friendly Made in Europe products and components is the main way to combine environmental responsibility with industrial responsibilities.’

Record EV results

When it comes to the EV market, the registration volumes in Italy do not make it one of the leading countries. However, March proved positive for both BEVs and PHEVs, with strong results.

BEV registrations increased by 74.8% in the month, with 9,369 deliveries. This was up by 4,009 units year on year. The figure is the second-highest total for monthly BEV registrations in the country, following the incentive-affected jump in June 2024.

March’s performance gave the all-electric powertrain a share of 5.4%, up by 2.1pp compared to the same month last year.

Across the first three months of the year, BEVs registrations have increased by 72.5%, with strong growth across the period. Its 5.2% of total deliveries in the period grew 2.2pp.

PHEVs also enjoyed a strong month, with registrations up 36.1% year on year. This equated to 7,608 units, the powertrain’s best performance in the country.

However, the lower volumes meant that despite the record result, PHEVs only took a 4.4% share of the market last month. This was an improvement on the 3% held in March 2024.

Over the first quarter, PHEVs have seen registrations improve by 31%, with 18,616 deliveries. This equates to a 4.2% market share, up by 1.1pp year on year.

Hybrid dominance

Hybrids, made up of full and mild-hybrid models, were the dominant powertrain in March. Their percentage growth of 23.8% was lower than other electrified technologies, yet their unit total of 77,837 was up by 14,946 deliveries compared to last year.

While other large European markets, such as France and Germany, have only recently seen hybrid powertrains overtake petrol, the situation is different in Italy. The technology has been the dominant fuel type since the third quarter of 2021, according to statistics from ACEA.

Therefore, it is no surprise that the 45.2% market share achieved last month makes it the leading powertrain. However, its position in the market has improved, with this share up by 6.4 percentage points compared to the same period in 2024. This means its gap to petrol has widened, and sat at 18.5pp in March.

In the first quarter, hybrid registrations are up by 15.3%, with 198,685 deliveries. This gave the powertrain a 44.7% market share, up 6.5pp. Its gap to petrol widened, from 7.1pp in the first three months of 2024, to 18.1pp this year.

Poor for petrol and diesel

While electrified powertrains soared in March, petrol and diesel models continued to struggle.

Petrol suffered its eighth monthly decline in a row, although its 46,076-unit total was its best volume-performance since March 2024. This comparison meant the fuel-type’s registrations fell 9.4% year on year.

With a 26.7% market share, the powertrain fell further away from hybrids in the competitive structure of the Italian market. This hold was 4.7pp down compared to last year. Despite this, petrol is comfortably the second-best technology in the country.

Between January and March, petrol registrations declined 15.8%, with 118,107 deliveries. This gave the technology a 26.6% hold of total registrations in the period, a drop of 4.5pp

Diesel registrations also struggled again in March. The 18,122 units delivered represented a decline of 25.8% compared to the same point in 2024. The result was a 13^th-consecutive double digit drop for the powertrain.

However, despite this, diesel remained Italy’s third-best powertrain in March. Its share of 10.5% was a drop of 4.6pp, but it continued to stay ahead of both BEVs and PHEVs.

In the first quarter, diesel deliveries have sunk. Their 44,685-unit total is 34.1% down year on year, while the 10.1% market share has fallen 4.9pp.

Electrified leads

Combining BEVs and PHEVs, the EV market achieved a 55% improvement in registrations last month. This equated to a rise of 6,027 units compared to March 2024.

In the first quarter, EVs have performed strongly. Registrations are up 51.1%, with an extra 14,063 units delivered to customers.

Adding hybrids into the mix, the electrified market improved by 28.4%, with 20,973 more models taking to Italian roads. This sector sits comfortably ahead of the internal-combustion engine (ICE) market, with a share of 55% of all registrations, up 9.4pp.

Over the first three months of 2025, the electrified market has risen 20.2%, and accounts for 54.1% of total registrations. This is an improvement of 9.8pp year on year.

However, the ICE market continues to struggle. In March, combined registrations of petrol and diesel models were down 14.7%, a loss of 11,067 units. The technology’s market share fell 9.1pp, ending the month at 37.3%.

Between January and March, fossil-fuel powertrains have seen deliveries fall 21.8%, equating to a loss of 45,251 models. The 36.7% market share secured during this period is down 9.4pp year on year.

Germany’s new-car market recorded another decline in March. This was despite a spike in plug-in hybrid (PHEV) and battery-electric vehicle (BEV) registrations. Tom Hooker, Autovista24 journalist, analyses the figures.

New-car deliveries fell for the ninth consecutive month in Germany, with a 3.9% drop in March. However, the total of 253,490 units was also the market’s highest figure since June 2024.

According to the latest figures from the KBA, commercial registrations dropped by 6% year on year. Yet, the sector still made up 66.7% of registrations. Deliveries to private buyers improved by 0.5% and took a 33.3% share of the market.

‘In the first three months of 2025, new-car registrations declined by 4.3% compared to the previous year to a total of 664,564 units,’ explained Robert Madas, Autovista Group’s regional head of valuations.

Registrations fall in Germany

The 4.3% decline means Germany’s new-car market suffered its worst first quarter since 2022. It was outperformed by Spain and the UK, which saw growth in the three-month period. Italy also recorded a better result across the three-month period, despite a decline of its own. Out of Europe’s big five new-car markets, only France fell behind Germany.

‘The negative development of vehicle registrations, compared to the first quarter of the previous year, shows that an economic recovery and thus customer confidence in the purchase of new vehicles has still not been achieved,’ said VDIK president Imelda Labbé.

‘This should be a strong indication to politicians in the coalition negotiations [to form the German government] of the need for sustainable reforms for Germany as a business location,’ she noted.

However, in some areas of the new-car market, there were signs of positivity. ‘Within the declining market, the upper mid-size segment performed particularly strong. It almost doubled its volume compared to the first quarter of 2024 and reached a market share of 5.5%,’ outlined Madas.

‘SUVs also enjoyed positive figures, with an increase of 5.6% in the first quarter, giving the segment a market share of 31.7%,’ he highlighted.

Promising PHEVs

PHEV deliveries surged by 65.8% in March, with 26,553 deliveries. The technology was the best-performing powertrain in terms of year-on-year percentage growth and recorded a gain of 10,537 units year on year.

This was the third consecutive month of double-digit increases for the powertrain. It also marked its biggest improvement since December 2022, when PHEV incentives.

The technology accounted for 10.5% of the new-car market in March, up 4.4 percentage points (pp) compared to one year ago. This was PHEV’s highest share since December 2022.

In the first quarter, the powertrain enjoyed a 41.8% rise in registrations, reaching 63,799 units, according to Autovista24 calculations. It was Germany’s best-performing technology in this period. It captured 9.6% of overall deliveries, up from its 6.5% share during the same period in 2024.

However, it still comfortably remains the country’s least popular powertrain, apart from the ‘others’ category.

Germany’s BEVs blossom

BEV registrations soared by 35.5% in Germany last month, with 42,521 units. This was the technology’s biggest volume total since June 2024. March also marked the third month of consecutive BEV growth, a feat not seen since August 2023.

Excluding all-electric vehicles from the market total, overall deliveries would have suffered a sharper decline of 9.2%. The powertrain made up 16.8% of overall volumes, up 4.9pp year on year. This was the highest BEV share recorded since December 2023, when all private electric vehicle (EV) incentives ended.

Across the first three months of 2025, the technology achieved a 38.9% increase in registrations, with 112,968 units, based on Autovista24 calculations. This was an improvement of 31,631 deliveries compared to one year ago. The volume of all-electric vehicles also sits just over 10,000 units ahead of diesel in the first quarter.

BEVs captured 17% of the total market, up from its 11.7% share recorded in the same period of 2024. This result was 1.5pp ahead of diesel.

Will CO₂ targets impact figures?

An amendment to CO₂ emission standards submitted by the European Commission could affect BEV figures moving forward.

Carmakers can now average out their emission results for three years across 2025, 2026, and 2027, helping to relieve some pressure. However, Germany’s current BEV share may not be enough to meet the average target of 93.6g/km of CO_2.

‘On the one hand, the European Commission’s proposal to extend the deadline for reaching the CO₂ fleet limits creates the much-needed flexibility. New registrations of BEVs are increasing. Nevertheless, a share of 16.8% in March is currently far from sufficient to achieve the CO₂ targets,’ stated Labbé.

‘Since the limit values continue to tighten every year, the extension of the deadline does not mean a delay in the efforts to ramp up electromobility. What we need from politicians now are long-term and stable framework conditions for higher customer demand so that the goals can be achieved in the future,’ she said.

EVs uphold Germany

Combining BEV and PHEV deliveries, the EV market grew 45.7% in March, with 69,074 units. This was the highest plug-in registration total since December 2023. It also marked three months of consecutive growth, and the biggest monthly improvement since August 2023.

Excluding EVs from the overall market, volumes would have dropped by 14.8% in Germany. Plug-ins represented 27.2% of new-car deliveries last month. This was an increase of 9.2pp year on year, the biggest growth since December 2022.

‘The shares of BEVs and PHEVs have continued to recover. However, it must be taken into account that new registrations fell massively in the first months of 2024 after the expiry of the state subsidy,’ noted Madas.

In the year to date, plug-in volumes grew by 39.9%, equating to a 50,445-unit gain compared to the same period in 2024. EVs accounted for 26.6% of overall deliveries, up from its 18.2% share recorded across the first three months of 2024.

Petrol causes problems

Petrol-powered cars were comfortably the worst-performing powertrain in March. Registrations of the fuel type slumped 29.4% to 70,414 units. This represented a loss of 29,339 deliveries compared to 12 months prior. This was petrol’s biggest year on year percentage decline since December 2021.

Excluding the powertrain from total volumes, the market would have grown by 11.6%. It made up 27.8% of overall registrations, a 10pp drop compared to March 2024. Furthermore, it marked petrol’s lowest share since August 2023.

The result also maintains a streak of the fuel type losing shares month on month consecutively since September 2024.

In the first quarter, deliveries of petrol-powered cars decreased by 26.6%, with 189,683 units, based on Autovista24 calculations. It captured 28.5% of Germany’s new-car market, down from its 37.2% share during the first three months of 2024.

Diesel’s double-digit drops

Diesel-powered cars suffered a 21.7% decline in March, with 37,890 registrations. This marks four consecutive double-digit drops for the powertrain and its biggest decrease since August 2024. However, last month’s figure was also the fuel type’s highest delivery total since July 2024. It took a 14.9% market share, a drop of 3.4pp year on year.

Between January and March 2025, diesel volumes fell by 21.7%, with 102,962 units. It represented 15.5% of overall registrations, down from an 18.9% share during the same period last year.

Adding together the volumes of petrol and diesel, the internal combustion engine (ICE) market slumped by 26.9% in March. This was its biggest monthly percentage drop since May 2022. It also represented the powertrain grouping’s fourth month of double-digit declines, three of which are over 20%.

ICE models accounted for 42.7% of the market, down 13.4pp year on year. This was its lowest monthly share since August 2023.

In the year to date, deliveries dropped by 25%, equating to a loss of 97,392 units. The powertrain grouping made up 44% of overall volumes, down from its 56.1% share recorded in the first quarter of 2024.

Hybrid’s new high in Germany

Hybrid registrations improved by 11.7% in March, reaching 74,860 units. This was the powertrain’s biggest-ever delivery total in Germany and marked seven consecutive months of growth.

The technology took a 29.5% share, up 4.1pp year on year. This made it the country’s most popular powertrain for the third time. Its 1.7pp advantage over petrol last month was its largest-ever market-leading margin.

In the first quarter, hybrid volumes grew by 10.5%, with 192,265 units, according to Autovista24 calculations. It accounted for 28.9% of overall registrations, up from 25%.

Combining hybrid’s performance with the EV total, the electrified market surged by 25.8% in March. It accounted for 56.8% of total volumes, up from its 43.4% share recorded 12 months ago. This result was also 14.1pp ahead of the ICE market.

The powertrain grouping improved deliveries by 22.9% in the first quarter, equating to a gain of 68,783 deliveries. It represented 55.5% of the overall market, up from 43.2%.

Second quarter uncertainty

‘Growth in electric vehicles and hybrids continued in March. Based on the current new orders, we cannot yet be sure whether this trend will continue in the second quarter,’ said ZDK vice president Thomas Peckruhn.

‘This is because the backlog of new vehicles from 2024, which will not be registered by manufacturers until this year to achieve the stricter CO₂ fleet values, has not yet been completely reduced. Many private customers are waiting to see what funding signals come from the government coalition that is being formed.

‘One thing must be clear to everyone: electromobility only works as an overall system, from a discounted charging electricity price to a rapid expansion of the charging infrastructure and gradually reducing financial support through purchase premiums. Here, politicians must think holistically and set targeted incentives,’ outlined Peckruhn.

The ‘others’ category, including hydrogen fuel-cell electric vehicles, natural gas and liquified petroleum gas vehicles, E85/ethanol and other fuels, declined 3.2% in March. The powertrain grouping posted 1,252 registrations, giving it a 0.5% market share, stable from one year ago.

Across the first three months of 2025, the category fell by 35.8%, with 2,887 units. The powertrain grouping made up 0.4% of overall volumes, down 0.2pp year on year.

Following a strong month of new-car registrations in March, the UK government is looking to further support the country’s automotive market. But will changes to the ZEV mandate reduce pressure on carmakers? Autovista24 special content editor Phil Curry examines the data.

After five consecutive months of decline, the UK’s new-car market bounced back in March. With the country’s ‘new-plate’ month often producing larger registration volumes, this year saw electrified vehicles benefit.

The latest data from the SMMT reveals that UK new-car registrations grew 12.4% in March. A total of 357,103 units were delivered to customers, up by 39,317 deliveries year on year. This is the best March total since 2019 and brings an end to a run of declines stretching back to October 2024.

The performance caused a turnaround in the market’s year-to-date fortunes. Over the first three months of 2025, the market returned to growth, with registrations up 6.4%. A total of 580,502 new cars were delivered over the first quarter, up by 34,954 units year on year.

However, the market is far from stable at present, and the stricter zero-emission vehicle (ZEV) mandate target for this year has caused concern in the industry.

Together with the upcoming 2030 petrol and diesel new-car ban, pressure on the market has increased in recent months. Yet, new announcements by the UK Government are aimed to alleviate these concerns.

The path to 2030

In the wake of global political and financial turmoil, the UK government has announced measures to boost the new-car market. Alongside a relaxation in the rules around the 2030 petrol and diesel new-car ban, it is also revising the ZEV mandate. Targets remain, but the opportunities to avoid financial penalties are increased.

Pure internal-combustion engine (ICE) models will be banned from new car sales in 2030. However, both full hybrid (HEV) and plug-in hybrid (PHEV) models will continue to be sold until 2035. Carmakers will need to ensure that overall CO₂ emissions from these models are 10% lower than their 2021 levels.

Meanwhile, in the light-commercial vehicle market, petrol, diesel, HEV and PHEV sales will continue until 2035. Manufacturers must ensure that CO₂ emissions between 2030 and 2035 do not grow above levels from 2021.

Small-volume manufacturers with registrations between 1,000 and 2,499 units and micro-volume manufacturers with registrations under 1,000 units will be exempt from the 2030 to 2035 hybrid requirements.  These businesses will need to meet a nominal CO₂ reduction across their fleets during this period, which will be agreed upon individually.

Flexibility in the ZEV mandate

When it comes to ZEV mandate targers, to reduce the pressure on carmakers in the UK, the government has reduced the fine-per-unit over the required target. Manufacturers will now pay £12,000 (14,006) per car over the zero-emission model threshold, a drop of £3,000.

The flexibilities to transfer credits between car and van markets and from less-polluting models have also changed.

In the new plans, one car credit can be exchanged for 0.4 van credits, while one van credit can be exchanged for two car credits. This is derived from relative mileage and CO₂ emissions. This flexibility would be uncapped and available from 2025 onward.

Currently, carmakers can create credits by cleaning up their non-ZEV fleet compared to their 2021 CO₂ baseline. This ability was set to expire next year, but will now be extended to 2029. Therefore, manufacturers now have the flexibility to reward any CO₂ savings from their hybrid fleets towards their ZEV targets.

However, this flexibility will be capped each year, ensuring the mandate continues its goal of driving zero-emission sales.

In 2025, the original emissions flexibility was capped at 45% of the total ZEV requirement. This has now doubled to 90%. Therefore, 25.2% of a carmaker’s fleet target can be made up of non-ZEV cars based on emissions trading credits.

The cap drops by 10 percentage points each year until 2029, when it reaches 50%. The existing ZEV mandate targets remain, yet the push for more HEV and PHEV options in carmaker line-ups should allow for enough emissions trading to reduce the likelihood of penalties.

The period where credit borrowing from other manufacturers is also extended to 2029, with the borrowing threshold dropping each year. From a 50% maximum in 2025, the cap falls to 25% in 2026, and then by 5pp each year until it reaches 10% in 2029.

The industry reacts

‘The government has rightly listened to industry, responded quickly to global dynamics and recognised the intense pressure manufacturers are under,’ commented SMMT chief executive Mike Hawes.

‘Industry remains committed to decarbonising road transport, but the ZEV mandate targets are incredibly challenging, especially with a paucity of consumer demand and geopolitical upheaval.

‘However, growing electric vehicle (EV) demand to the levels needed still requires equally bold fiscal incentives to give motorists full confidence to switch,’ continued Hawes.

‘We welcome the changes made today as a step in the right direction for the UK automotive sector. However, it is vital that more incentives are available to encourage the consumer to move to EVs,’ stated CEO of the National Franchised Dealers Association (NFDA) Sue Robinson.

‘The EV targets remain in place and the fines remain too high for manufacturers. The UK remains the most aggressive regime for the EV transition, and we would want the UK Government to align with the rest of Europe, to make our market as competitive as possible in a rapidly changing global marketplace,’ she highlighted.

While outlining amendments to the ZEV mandate and 2030 new-ICE ban, it has stopped short of announcing incentives for the purchase or ownership of an electric vehicle. At the recent SMMT Electrified conference, calls were made for a reduction in VAT on public charging to benefit those without access to off-street parking.

There were also calls for the Expensive Car Supplement (ECS), applicable to vehicles registered from 1 April, to be raised by £20,000 to £60,000 to avoid it impacting the ZEV market.

The ECS will see £425 added to the standard vehicle excise duty (VED) rate in years two to six of registration, with EVs having been previously exempt.

Best month for BEVs

Battery-electric vehicles (BEVs) led the market in terms of registration improvement in March. The 69,313-unit total was 43.2% higher than the same month in 2024. This equated to a rise of 20,925 units year on year. This was the largest ever monthly volume for the powertrain.

However, the SMMT reports that manufacturers offered significant discounting, as they sought to deliver more ZEVs to drivers during the new ’25 plate’ month. As March usually accounts for around 16% of annual registrations, it was important to have as many deliveries as possible, to count towards their ZEV mandate targets.

Furthermore, the introduction of VED from 1 April could impact the market. This regulation will see a £10 tax during the first year of registration, rising to £195 annually. Additionally, new BEVs registered on or after 1 April will be eligible for the ECS if they cost more than £40,000. This may explain the higher March figures, with drivers aiming to avoid that charge.

The increase means that the all-electric technology’s market share jumped by 4.2pp to 19.4%. It was the second-best powertrain in the month, ahead of HEVs but some way behind petrol.

Yet, this share, while significantly improved, is 8.6pp behind the 29% ZEV mandate target for this year. With the VED and ECS changes, figures may struggle to reach the required figure.

In the first quarter, BEV registrations have increased by 42.6% This was thanks to the push and discounting by manufacturers. A total of 120,191 units have taken to UK roads, with a 20.7% share of the year-to-date total up 5.2pp year on year.

Hybrid growth continues

Unlike other European markets, the SMMT mixes mild-hybrid registrations with their equivalent petrol and diesel counterparts, This means figures for the hybrid market are based on HEVs and PHEVs.

HEVs achieved a rise of 27.7% in March, with 56,161 registrations. This led to a 15.7% market share in the month, up by 1.9pp. In the first quarter, the powertrain was up 18.7%, with 86,005 units delivered. This was a 14.8% hold of the total across the first three months of 2025, up by 1.5pp.

Meanwhile, PHEVs saw a growth of 37.9% year on year, albeit on smaller volumes. Their improvement in March meant 33,815 models took to the road. The powertrain captured 9.5% of the market, up from its 7.7% share recorded a year previously.

Between January and March, PHEV registrations rose 26.1% with 53,686 registrations, giving it a 9.2% market share. This was up 1.4pp year on year.

Grouping BEVs and PHEVs together, the EV market saw figures up by 41.5% in March, an improvement of 30,233 units. In the year to date, numbers were up by 37%. Plug-ins accounted for 30% of overall deliveries, up from a 22.9% share recorded in the same period of 2024.

Adding HEVs into the mix, the electrified market grew by 36.3% in the third month of 2025, with 159,289 new units leaving forecourts across the country.  However, its 44.6% market share was not enough to dislodge ICE as the dominant powertrain technology. Over the first quarter, electrified registrations were up 30.4%.  

Petrol proves popular

Petrol cars, including mild-hybrids, continued to lead the market in March. However, the 176,847-unit total was down 0.4% year on year, a difference of just 738 units.

The performance was the best of the year for the powertrain, following double-digit losses in January and February. It meant that petrol accounted for 49.5% of the market, although this was a drop of 6.4pp compared to March 2024.

In the first quarter, petrol registrations fell by 7.1%. The performance in March helped to reduce this loss, which stood at 16.1% over the first two months of the year. A total of 286,787 units were delivered, taking 49.4% of the total. This is a drop from the 56.6% share recorded in the first three months of 2024.

Diesel was both the least popular and worst-performing powertrain in March. The 20,967-unit total was 10.1% down year on year. Meanwhile, its 5.9% market share was 1.4pp off its hold in March 2024.

Over the first three months of the year, diesel deliveries have declined 10.2%, with 33,833 units. The powertrain’s market share of 5.8% is down from the 6.9% held at the same point last year.

Combined, ICE registrations in March fell just 1.5%, or 3,083 units. The group made up 55.4% of the market, a drop of 7.8pp year on year. In the first quarter, ICE deliveries fell 7.4%, with its 55.2% hold down from the 63.5% recorded during the same period of 2024.

Last month, full hybrids (HEVs) led the new-car market in France for the first time, as petrol registrations collapsed. But is this the start of a new electrified age in the country? Autovista24 special content editor Phil Curry explores the latest figures.

The French new-car market’s struggles continued in March, as petrol powertrains lost their leading position in the market for the first time.

According to figures from French automotive authority PFA, registrations were down 14.5% in the month, with 153,844 units delivered, according to Autovista24 calculations. This is a drop of 26,180 units compared to the same period in 2024.

The early Easter period in March last year meant that most European markets posted declines. These markets bounced back in April. Compared to the last uninterrupted March in 2023, the market was down 15.8%.

This means that April may also see a registrations decline. It would be pitted against a stronger month from 2024, while also seeing disruption from this year’s Easter break.

Only HEVs and mild hybrids (MHEVs) posted improvements last month. Every other powertrain experienced a double-digit decline, highlighting the struggle the French new-car market is currently facing.

In the first quarter of the year, registrations are down 7.8% in the country. The 410,085 units delivered to customers were 34,819 units down against the first three months of 2024.

Changing circumstances in France

There were several circumstances that could have led to the steep decline. Many registrations were pulled forwards into February, due to changes in the electric vehicle (EV) subsidy amounts offered by the government. There was also a change in the malus tax threshold, which may have dissuaded buyers.

From the start of last month, the CO₂ emission threshold for triggering a €50 malus tax tightened to 113g/km. A further €25 is added for each 1g/km up to €150 or 117g/km. A further €20 for each gramme per kilometre is added up to 124g/km. After this, the increments increase to a maximum €70,000 penalty for vehicles with CO₂ emissions of more than 192g/km.

This may explain a dramatic collapse in the internal-combustion engine (ICE) market during March. This comes alongside changing carmaker attitudes, with a rise in MHEV powertrains replacing traditional engines. It remains to be seen whether the impact will level out during the rest of the year.

‘This drop in the new car market in March was largely predictable after the anticipated registrations in February linked to the reduction in the bonus and the increase in the penalty. We should see less disrupted monthly trends starting next month,’ explained Marie-Laure Nivot, head of automotive market analysis at AAA Data.

‘In the meantime, the 8% decline in the first quarter shows how depressed the market remains, despite the accelerating electrification of fleets.’

Alongside subsidy and malus changes, the market also had to compete against a period when social leasing was in operation. During this time, private buyers could rent an EV for €100 a month or less.

A total of 50,000 households benefitted from the offer, which expired within less than two months. These vehicles were delivered throughout February and March, increasing registration figures in those periods.

Petrol dominance ends

Changes in the taxation on ICE models with higher emissions may have been instrumental in the collapse of the market in France during March.

Petrol registrations fell by 44.2% last month, according to Autovista24 calculations. This meant the 32,867 deliveries in the month was down by 25,995 units year on year. Its market share of 21.4% was down by 11.3 percentage points (pp) against March 2023.

The collapse meant that for the first time, the powertrain fell behind both HEV and MHEV in terms of volume and market share. This is particularly significant as, unlike most EU markets, France splits out its hybrid category into these two technologies. While combined hybrid registrations have led the total EU market for months, in France, petrol has remained on top thanks to this split.

HEVs and MHEVs have been growing closer to petrol volumes over the last 12 months. Whether March’s results mean a permanent shift in the powertrain dynamics of the market remains to be seen. But, petrol is no longer the dominant force it used to be.

Across the first quarter of 2025, petrol registrations are down by 34.1%, with 97,951 units. This is a shortfall of 50,734 units year on year. The fuel-type is still the most registered across the three-month period, but only just. Its market share of 23.9% is down from the 33.4% recorded in the same period last year.

ICE struggles in France

Diesel also struggled in March. Its 6,463-unit total was 52.1% down year on year, according to Autovista24 calculations. It was the worst-performing of all major powertrain types in terms of volume and percentage decline.

The technology accounted for just 4.2% of total registrations in the month, a drop of 3.3pp compared to the same period last year.

In the year to date, diesel registrations are down 45.6% with 18,126 registrations. Its hold of 4.4% has dropped from the 7.5% of total registrations in the first three months of last year.

Combining petrol and diesel, ICE registrations fell 45.6% in March, with 33,029 fewer deliveries. Its share of 25.6% means it is at risk of being overtaken by the EV group of powertrains in monthly figures.

Across the first three months of the year, ICE registrations have fallen 36.2%, equating to a loss of 65,946 units. This has left the technology with a 28.3% share, a drop from its 40.9% market hold secured at the same point in 2024.

Hybrids dominate new-car market

As ICE registrations fell, the hybrid market soared. HEVs and MHEVs were the only powertrains in France to record growth in March.

The best performing, in terms of year on year improvement, was MHEVs. Registrations increased by 57.6%, according to Autovista24 calculations. This mean 33,392 new models took to the country’s roads, accounting for 21.7% of total deliveries. This was an increase of 9.9pp compared to the same point last year.

Meanwhile, HEVs achieved a 29.8% registration rise, with 37,284 models delivered. The performance meant the powertrain led the market in terms of share, with 24.2% of total units in the month. Last year, it represented 16% of the overall new-car market, highlighting the technology’s growth in the 12-month period.

In the first quarter, MHEV registrations have improved by 73.9%, equating to 89,312 deliveries. This is a rise of 37,966 units over the same period of last year.

The technology has benefitted from carmakers adding more MHEV options to their ranges at the expense of pure petrol and diesel models. The powertrain has a 21.7% hold on the market, up 9.9pp.

HEVs saw a rise of 29% in the first three months of the year, with 94,955 units. Their market share of 23.2% is just 0.7pp behind petrol over the first quarter, meaning it will likely overtake the fuel-type in the coming months if it continues to perform strongly. This share is a rise from its 16.5% market hold recorded in the same period last year.

France’s EV struggle

Battery-electric vehicle (BEV) registrations fell for the eighth month in succession as the technology continues to struggle in the French market. Figures were down 14.7%  with 29,261 deliveries, according to Autovista24 calculations. This led to a slight drop in market share, of just 0.1pp, to 19%. The all-electric powertrain benefitted from poor results elsewhere to record this stability.

Incentive changes have not helped uptake, and across the first three months of the year, BEV registrations have dropped 7.1% to 74,519 units. With declines in the ICE market, the all-electric share has grown 0.2pp to 18.2%.

While BEVs have struggled, plug-in hybrid (PHEV) registrations have slumped. March saw figures down by 49.1%, to 8,289 units. This is a deficit of 5,061 units, according to Autovista24 calculations. The result left the technology with a market share of 5.4%, down 3.7pp year on year.

PHEVs are the worst-performing powertrain in terms of declines across the first quarter of the year. Registrations are down 49.2%, with 19,592 models taking to French roads. This is a drop of 18,983 units. Market share has fallen by 3.9pp, sitting at 4.8% between January and March.

Electric markets fluctuate

Combining BEV and PHEV results, the EV market fell 25.8% in March, with 13,066 fewer models delivered. The group took a market share of 24.4%, just 1.2pp behind ICE. However, this result was down 3.7pp year on year. Last year’s share of 28.1% would have comfortably beaten the ICE share from March 2025.

Across the first three months of the year, EV volumes have dropped 20.8% from 2024, equating to a loss of 24,676 units. The group accounted for 22.9% of overall figures, down from its 26.7% share recorded at the same point last year.

Adding HEVs into the mix, the electrified market dominated the new-car market in France last month. However, the EV decline pulled the grouping into a loss of 5.7% year on year. Thanks to the HEV result, its market share was up by 4.5pp to  48.6%.

In the first quarter, the situation is the same. EVs pulled the electrified segment into a 1.7% loss of registrations. Yet the technology still dominated the market with a 46.1% share, up 2.9pp compared to the same period last year.  

The EU’s new-car market has not seen a good start to 2025, underlined by another registrations drop in February. Autovista24 special content editor Phil Curry assesses the latest figures.

Europe’s new-car market struggled in February, with petrol and diesel registrations the culprit once again. The market saw increased battery-electric vehicle (BEV) and hybrid registrations. But these were not enough to offset major collapses in deliveries of fossil-fuel powertrains.

The latest data from ACEA shows that the EU market fell 3.4% in the month, with 853,670 units delivered. This was a gap of 30,168 units compared to the same period last year.

Changes in regulations

At the start of March, the European Commission submitted its industry action plan. It set out a roadmap to relax the CO₂ emissions regulation timetable on new cars.

Previously, manufacturers were required to reach an average emission level no higher than 93.6g/km across their fleets. Otherwise, they would face fines for each 1g/km over.

Carmakers will now have a period of three years to comply. The average emissions figures between 2025 and 2027 will be taken into account. This means any emissions over the limit can be balanced out in the remaining period.

Before this, some carmakers may have withheld petrol and diesel sales, lowering the number of models available. This would have been countered with a greater availability of hybrid and electric vehicles (EVs), resulting in lower fleet emissions.

Moving forward, carmakers will be wary of not being able to balance out high average fleet emissions in one year. However, they may look to offer a more rounded powertrain range to boost sales and profits.

BEVs buck the decline in registrations

Whether a result of the previous emission regulation or a surge in popularity, the BEV market is currently riding high. During February, the market was up 23.7%, with 131,275 registrations. This was a difference of 25,109 units compared to February 2024, highlighting the improvement of the technology.

In terms of market share, BEVs made up 15.4% of total registrations in the month. This was up 3.4 percentage points (pp) compared to the same month last year.

Across the big four markets, Germany saw the highest volume, with 35,949 registrations, up 30.8%. Spain saw the biggest increase, with 6,112 units equating to year-on-year growth of 60.6%.

Italy’s BEV market grew 38.2% with 6,922 units. Only France saw a decline, down 1.9%, with a volume of 25,335 units. This was still the second-highest total in Europe.

With both Italy and Spain recording low BEV volumes, the market is more balanced than most. Both Belgium and the Netherlands can be considered major markets for the all-electric powertrain. Last month, Belgium saw 13,040 BEV deliveries, up 38.9%. Meanwhile, the Netherlands was up 22.4%, with 10,174 units.

Registrations building back

BEVs struggled in the EU last year. A mix of incentive changes, subsidy cancellations and tariff implementations affected the market. However, the technology has started this year well, with two high double-digit increases in the first two months of 2025.

This means in the year-to-date, BEVs were up 28.4%, with 255,489 units delivered. Three of the four largest EU markets accounted for 46.4% of all BEV registrations, and recorded robust double-digit gains. These included Germany, up 41%, Belgium, up 38%, and the Netherlands, up 25%. This contrasted with France, which saw a slight decline of 1.3%.

BEVs have taken a 15.2% share of the EU new-car market so far in 2025, up from 11.5% at the same point last year. The increase in the year-to-date figures may be due to fluctuations in the BEV market at the start of 2024. This is backed up by the strong result in Germany.

At the end of 2023, the country abruptly stopped its incentive scheme for private buyers. This impacted registration totals at the beginning of last year, which the market is now making up for. With increased uptake in other markets and the potential effects of emission regulations, the EU BEV market is pushing forward.

Hybrids remain popular

Hybrids were the only other powertrain to record growth in February. Made up of full and mild-hybrids, this sector saw 304,062 units registered, an increase of 19% year on year.

The result meant that hybrids once again led the new-car market in the month, with a 35.6% share of deliveries. This was an improvement on the 28.9% hold 12 months ago. At this point the technology was closing in on the once market-leading petrol powertrain.

Across the first two months of the year, hybrids improved their volume by 18.7%. A total of 594,059 units have been registered. This is nearly 100,000 more than in the same period last year. Their share of 35.2% of the market was up by 6.4pp.

Meanwhile, plug-in hybrids (PHEVs) suffered a minor decline in February. Figures were down by 1.4%, with 63,570 deliveries to customers. However, due to fluctuations elsewhere in the market, the powertrain’s share grew by 0.1pp, to 7.4%.

PHEVs have had a tricky start to the year, seemingly being bypassed by drivers in favour of hybrids or BEVs. The technology was 5% down across the first two months of 2025, with 124,947 registrations. This gave it a 7.4% hold of the total market, a drop of 0.2pp.

Electrified market dominates

These individual results combine to show that the EU market is moving further towards an electrified future.

The EV market, made up of BEVs and PHEVs, grew 14.2% last month, hampered slightly by the plug-in hybrid decline. 22.8% of all models delivered in February were plug-ins, as the sector edges towards a quarter of the market. This was up from 19.3% recorded in the same month last year.

Between January and February, EVs were up 15.1%, again thanks to the strong performance of BEVs. Their combined market share of 22.6% was up from 19% at the same point in 2024.

Adding hybrids into the mix, electrified models dominated the EU new-car market. In February, the market share increased by 10.2pp, to 58.4%. The grouping saw registrations grow by 17.1% in February, equating to 72,823 more electrified model deliveries.

In the year to date, the result was similar. Electrified vehicles lead with a 57.8% market share. This was up by 10pp year on year, while registration totals improved by 17.3%. This equates to an increase of 143,667 units compared to the same point in 2024.

ICE slide continues

While electrified models fly high, internal-combustion engines (ICEs) have pulled the overall EU registration figures into decline.

Petrol registrations in February plummeted 22.4% year on year. A total of 244,073 units were delivered to customers in the month, equating to a market share of 28.6%. This was a drop of 7pp compared to the same period last year.

Meanwhile, diesel registrations fell 28.8%, to 80,569 units. This meant the powertrain took a 9.4% hold of total figures, down from 12.8% last year.

Over the first two months of 2025, petrol registrations fell by 20.5%, with 489,838 units. The fuel type’s market share of 29.1% was down from 35.5% in the same period last year. Diesel was down by 28%, with 163,452 registrations. It made up 9.7% of the market, down 3.4pp.

Combined, the ICE market fell 24.1% in February. Its year-on-year deficit of 102,988 deliveries could not be plugged by electrified models, leading to the EU market’s overall decline. The powertrain grouping captured 38% of overall volumes, a decline of 10.4pp year on year.

The same situation occurred in the year to date. ICE registrations fell 22.5%, with a gap of 189,720 units. This was too large to be bridged by electrified registrations. So, the EU market ended the period with a total loss of 51,458 deliveries.

Petrol and diesel models accounted for 38.8% of new-car volumes across the first two months of 2025. This was a significant distance from the 48.5% recorded in the same period last year.

Whether the changes to emissions rules will help ICE registrations remains to be seen. However, the market has been in decline for some time. This suggests that the EU’s shift towards electrification is caused by the changing attitudes of buyers and overall model range options.