New car sales in Europe have shown a notable uptick, rising 4.9% in October 2025, according to data released by the European Automobile Manufacturers’ Association (ACEA). The figures, which cover the European Union, Britain, and the European Free Trade Association, reveal a total of 1.092 million new cars were registered last month. But what’s truly turning heads is the surge in electric vehicles (EVs), which have outpaced their petrol and diesel counterparts for the first time in a sustained manner.
October’s numbers offer a snapshot of an industry in the throes of transformation. The continent’s largest markets—Germany, the UK, Spain, and France—all posted increases in overall car sales, with Germany leading the pack at 7.8% growth. Spain followed with a robust 15.9% rise, France edged up by 2.9%, and the UK saw a modest 0.5% increase. Italy, in contrast, experienced a slight decline of 0.5%, reflecting ongoing regional disparities within the European market.
It’s the electric revolution, however, that’s stealing the spotlight. Battery electric, plug-in hybrid, and hybrid electric cars saw remarkable gains in registrations—up 38.6%, 43.2%, and 9.4% respectively compared to the previous year. Collectively, these vehicles accounted for about 63.9% of all new registrations in October, a jump from 55.4% in the same month of 2024. This shift marks a significant milestone for the bloc, underscoring how quickly consumer preferences and regulatory pressures are reshaping the automotive landscape.
Despite this progress, ACEA cautioned that the road ahead remains challenging. “Despite this recent positive momentum, overall volumes remain far below pre-pandemic levels,” the association said in a statement reported by Reuters. The battery-electric car market share reached 16.4% year to date, yet it is still below the pace needed at this stage of the transition. In other words, while the numbers are encouraging, there’s still a long way to go before electric vehicles become the undisputed norm on European roads.
The sales breakdown by manufacturer paints an intriguing picture of winners and losers in this shifting market. Volkswagen, Stellantis, and Renault all enjoyed year-on-year registration increases in October—6.5%, 4.6%, and a notable 10.6%, respectively. However, Stellantis’ year-to-date registrations were still down 4.7% compared to the same period in 2024, suggesting that short-term gains may not yet offset broader challenges.
Perhaps the most dramatic changes were seen among electric vehicle specialists. Tesla, once the darling of the EV market, saw its sales in Europe plummet by 48.5% compared to October 2024. Meanwhile, Chinese automaker BYD experienced a meteoric rise: its registrations jumped 206.8%, catapulting its market share from 0.5% to 1.6%. According to ACEA data cited by Reuters, BYD accumulated a staggering 240% increase in registrations in the European Union up to October 2025 compared with the same period in the previous year, reaching a total of 94,216 units. Chinese-owned SAIC Motor also posted a hefty 35.9% increase in registrations year-on-year.
This surge in Chinese EV exports is a trend that’s rattling European automakers and policymakers alike. The influx of competitively priced Chinese electric vehicles is intensifying competition and raising questions about the future balance of power in the European car market. As noted by Reuters, Chinese electric vehicle exports to Europe have been steadily increasing throughout 2025, putting pressure on established European brands to innovate and cut costs.
But it’s not just market competition that’s keeping industry executives up at night. The European car sector has been battered by a series of external shocks in 2025. U.S. President Donald Trump’s trade tariffs have complicated transatlantic commerce, while a slowdown in the Chinese market has dampened global demand. Adding to the uncertainty are fears of a potential chip supply chain crisis, with concerns centering on Dutch chipmaker Nexperia. The possibility of another semiconductor shortage—like the one that paralyzed global car production in 2021—remains a live issue, highlighting the fragility of supply chains in an era of rapid technological change.
All major European markets reported declines in petrol and diesel registrations in October, a clear sign that the internal combustion engine’s dominance is waning. This decline is partly driven by increasingly stringent emissions regulations and a growing network of incentives for electric vehicles. Governments across the bloc are rolling out funding packages aimed at making EVs more affordable, accelerating the installation of public charging points, and reviewing charging costs to ensure long-term accessibility for all drivers.
Yet, as ACEA points out, the transition is not happening fast enough to meet ambitious climate goals. The association emphasized that the current battery-electric car market share, while impressive, still falls short of what’s needed for Europe to hit its emissions targets and fulfill its commitments under the Paris Agreement. Bureaucratic hurdles, insufficient charging infrastructure, and regional disparities in access to electric mobility remain stubborn obstacles.
For European consumers, the landscape is rapidly evolving. The influx of new models from both legacy automakers and upstart entrants—especially from China—means more choices and, in many cases, lower prices. But it also means navigating a market in flux, where technological standards, government incentives, and even the very definition of what constitutes a “clean” vehicle are constantly shifting.
It’s not all smooth roads ahead. The industry’s recent positive momentum masks underlying vulnerabilities, from geopolitical tensions to supply chain fragility. As policymakers and business leaders grapple with these challenges, one thing is clear: the future of driving in Europe is electric, but the journey is far from over.
For now, the October sales data offer a glimpse of what’s possible when market forces, consumer demand, and public policy align. Whether this momentum can be sustained—and whether Europe can maintain its competitive edge in the global automotive race—remains to be seen. But one thing’s for sure: the electric revolution has arrived, and it’s picking up speed.
