Jan 27 (Reuters) – Sales of pure electric cars in the European Union exceeded gasoline cars for the first time in December, data showed on Tuesday, despite policymakers’ proposals to ease emissions rules.
U.S. battery-electric brand Tesla continues to lose market share to rivals such as China’s BYD and Europe’s top-selling group Volkswagen, according to data from European car lobby group ACEA.
Car sales across Europe posted a sixth consecutive month of year-on-year growth, with overall registrations – a proxy for sales – set to reach Europe’s highest level in five years in 2025, although still well below pre-pandemic levels.
why it’s important
The European auto industry faces challenges, including competition from China, U.S. import tariffs and difficulties meeting profitability in meeting domestic regulations for the adoption of electric vehicles.
The European Union unveiled a plan in December to abandon an effective ban on internal combustion engine cars in 2035, responding to calls from embattled carmakers. Electric transport groups argue that a rapid transition to electric vehicles is necessary to curb CO2 emissions.
Analysts expect electric vehicles to remain popular despite policy easing.
From a numerical perspective
ACEA data showed that car sales in the EU, UK and European Free Trade Association increased by 7.6% in December to 1.2 million vehicles, and overall sales in 2025 increased by 2.4% to 13.3 million vehicles.
During the month, Volkswagen and Stellantis registrations increased by 10.2% and 4.5% respectively, while Renault registrations fell by 2.2%.
Tesla’s registrations fell by 20.2%, but BYD’s registrations increased by 229.7%.
Total EU car sales increased by 5.8% in December to nearly 1 million vehicles, and for the full year they increased by 1.8% to 10.8 million vehicles.
Registrations of pure electric vehicles, plug-in hybrids and hybrid electric vehicles increased by 51%, 36.7% and 5.8% respectively in December, and together accounted for 67% of EU registrations, up from 57.8% in December 2024.
(Reporting by Alessandro Parodi; Editing by Jan Harvey)
