On October 28, the European Automobile Manufacturers’ Association (ACEA) released data showing that European new car sales rose 10.7% year-on-year in September, led by strong growth in Germany and the United Kingdom, with nearly all major markets posting gains.
The European automotive industry continues to face multiple challenges, including high production costs, U.S. import tariffs, and a slower-than-expected transition to electric vehicles (EVs).
To meet emissions regulations, automakers are increasing sales of plug-in hybrid electric vehicles (PHEVs), which are more cost-effective and profitable compared to battery electric vehicles (BEVs).
According to ACEA, in September 2025, new car registrations in the EU, the UK, and the European Free Trade Association (EFTA) markets climbed to 1.237 million units, partly thanks to the launch of several new models.
Volkswagen, Stellantis, and Renault saw year-on-year increases in registrations of 9.7%, 11.5%, and 15.2%, respectively.
Notably, Tesla’s sales fell 10.5% year-on-year, with its market share shrinking from 4.0% to 3.2%. In sharp contrast, BYD’s sales skyrocketed 398%, boosting its market share from 0.4% in September 2024 to 2.0%.
Overall, EU car sales grew 10% year-on-year. Registrations of BEVs, PHEVs, and hybrid electric vehicles (HEVs) rose 20%, 65.4%, and 15.9%, respectively. Together, these three categories accounted for about 64% of total new car registrations in September, up from 57% a year earlier.
By country, Germany saw sales rise 12.8%, the UK climbed 13.7%, Spain jumped 16.4%, Italy increased 4.2%, and France edged up 1%.
ACEA stated: “So far this year, the market share of fully electric vehicles has remained steady at 16.1%, but this growth rate is still below the level required for the current transition phase.”
