New car sales in Europe rose year-on-year in November for the fifth consecutive month, supported by the growing adoption of electric vehicles (EVs) in key markets including Germany, Italy, and Spain, according to data from the European auto lobby ACEA.

Surge in Electric Vehicle Registrations

Battery electric vehicle (BEV) registrations, a key indicator of EV adoption, reached a 21% market share in the European Union, 26% in the United Kingdom, and 98% in Norway. These figures highlight the accelerating shift toward clean mobility and zero-emission vehicles across Europe.

Despite recent regulatory uncertainty, analysts note that EVs represent the long-term future of Europe’s automotive industry.

Policy Shifts and Industry Challenges

The European Commission recently announced plans to abandon an effective 2035 ban on combustion engine cars, marking a significant retreat from previously planned green policies. This decision came after pressure from the region’s automobile sector, which faces challenges such as:

• Competition from Chinese automakers
• U.S. import tariffs
• High costs in meeting domestic EV regulations profitably

Sales Performance by Manufacturer

ACEA data showed that combined car sales across the European Union, Britain, and the European Free Trade Association rose 2.4% to 1.1 million vehicles in November.

• Volkswagen (VOWG.DE) registrations increased 4.1% year-on-year
• Renault (RENA.PA) registrations rose 3%
• Stellantis (STLAM.MI) saw a decline of 2.7%, following three months of growth

Tesla (TSLA.O) registrations fell 11.8%, although strong sales in Norway mitigated overall losses. By contrast, BYD (002594.SZ), Tesla’s Chinese competitor, recorded a 221.8% surge in sales, reflecting rapid global expansion.

In November, Tesla’s market share was 2.1%, while BYD’s share was 2%, indicating an increasingly competitive EV landscape in Europe.

Growth in Electrified Vehicles

Total European Union car sales rose 2.1% to nearly 900,000 vehicles. Registrations of electrified vehicles showed substantial growth:

• Battery electric vehicles (BEVs): +44.1%
• Hybrid electric vehicles (HEVs): +38.4%
• Plug-in hybrid electric vehicles (PHEVs): +4.2%

Combined, these vehicles accounted for 65.6% of total EU registrations, up from 56% in August 2024, and reflecting the dominance of EVs in new car sales.

ACEA cautioned:

“Despite the recent positive momentum, overall volumes remain well below pre-pandemic levels,” emphasizing that while EV adoption is strong, total market recovery is still ongoing.

Conclusion: Europe’s Auto Market Shifts Toward Electrification

The European new car market is witnessing a structural shift toward electric mobility, driven by regulatory changes, consumer preferences, and competition among global EV manufacturers. With EVs accounting for 60% of total EU sales in 2025, the market is on track for further growth, even as challenges remain for traditional automakers and combustion engine vehicles.