The start of 2025 confirms the contrasting trends shaping the European car market. According to the latest figures published on 25 February 2025 by the European Automobile Manufacturers’ Association (ACEA), new car registrations fell by 2.6% in January compared with the previous year.
This decline was mainly due to lower sales of petrol and diesel models, while alternative powertrains, particularly hybrids, continued to make headway. The main European markets recorded declining results: France (-6.2%), Italy (-5.8%) and Germany (-2.8%). Spain was the only notable exception, with an increase of 5.3%. In Luxembourg, registrations are also up by 2.3%.
The rise of hybrid powertrains
The ACEA figures confirm a shift that is already well underway. In January, hybrid cars once again outstripped petrol models, accounting for 34.9% of registrations (+18.4% over one year), compared with 29.4% for petrol engines. These less-polluting models are becoming increasingly popular on the European market, having already dominated it for the first time between September and November 2024.
At the same time, sales of 100% electric vehicles are also continuing to rise, with an increase of 34% over one year. In Luxembourg, they have even doubled. With a market share of 15% in the EU, these models are still below the targets set by Brussels. As a reminder, the European Commission is aiming for a 25% share of electric cars by the end of 2025, and has scheduled effective 2035.
Faced with these demands, the European car industry had argued for a postponement of the CO2 emissions standards to 2027. European manufacturers, already faced with inflation in production costs and increased competition from Asian brands, fear that overly strict standards could weaken their position on the world market.
In Luxembourg, the 25% mark has already been passed. Electric vehicles account for around a third of the car fleet (31%), ahead of hybrids (25%) and petrol engines (23%).
Tesla in trouble, Volkswagen and Renault in good shape
While sales of electric vehicles are growing, one major player in the sector is experiencing difficulties. Tesla has seen its sales in the EU halved in the space of a year. This drop could be linked to the controversial statements made by its CEO, Elon Musk, although the exact impact of his recent declarations remains difficult to assess.
Stellantis, , is also down sharply (-17.9% year-on-year). The group, which owns Peugeot, Citroën and Fiat, nonetheless retains a significant market share (16.1%), just behind leader Volkswagen (27.7%).
Like Renault, the German manufacturer is one of the best performers on the market, with annual sales growth of around 5%.
This article in French.