“While the overall market across the EU has seen a slight decline in the first half of the year, it is encouraging to see the continued growth in electric and hybrid vehicles, signalling the changing direction of consumer demand,” said Sue Robinson, Chief Executive of the National Franchised Dealers Association (NFDA), commenting on the latest European Automobile Manufacturers Association (ACEA) figures. In the first six months of 2025, new passenger car registrations in the European Union declined by -1.9% compared to the same period in 2024. Despite the modest contraction in overall volumes, growth in electrified vehicles has been a notable positive. Battery-electric vehicles (BEVs) continued to gain momentum, with sales reaching 869,271 units and securing a 15.6% market share – up from 12.5% in the first half of 2024. Among the largest EU markets, Germany saw the most significant increase at +35.1%, followed by Belgium (+19.5%) and the Netherlands (+6.1%), while France was the only major market to report a decline, down -6.4%. Hybrid-electric vehicles (HEVs) remained the most popular option across the EU, with registrations rising to 1,942,762 units in H1 2025. The market share for hybrids climbed to 34.8%, supported by strong growth in key markets including France (+34.1%), Spain (+32.8%), Italy (+10%), and Germany (+9.9%). Plug-in hybrid (PHEV) registrations totalled 469,410 units across the EU. PHEVs now represent 8.4% of all new EU car registrations, up from 6.9% at the same point last year. June alone saw PHEV volumes rise by 41.6% year-on-year, marking the fourth consecutive month of strong growth for the segment. In contrast, demand for traditional petrol and diesel vehicles continued to decline. Petrol registrations fell by -21.2% in H1 2025, with all major markets posting sharp declines. Petrol vehicles now hold a 28.4% share of the market, down from 35.4% last year, whilst diesel registrations make up just 9.4%. Sue Robinson concluded: “While it is disappointing to see the overall EU car market contract in the first half of the year, the strong performance of electrified vehicles, particularly hybrids and battery-electric cars, demonstrates resilience and continued consumer interest in the transition to electric. “Sustained government support is key to maintaining this momentum. The rise in plug-in hybrid and electric vehicle registrations across major European markets highlights the ongoing positive impact of incentives and infrastructure on the market.”