European car markets recorded modest growth, but the overall market saw notable shifts in the top-sellers of battery electric vehicles and where vehicles sold in Europe were produced, according to data published Feb. 5 by Jato Dynamics.
The data, which was emailed to WardsAuto, shows Volkswagen overtook Tesla as the top-selling battery-electric vehicle brand. Meanwhile, vehicles made in China in 2025 held the fifth-largest in terms of new registrations, up from ninth in 2024, driven by a 77% increase in imports to Europe.
As whole, Europe’s market grew 2.3% in 2025, with 13.2 million vehicles registered last year. However, the continent remains a laggard in sales volumes, which fell 16.5% compared to the 15.8 million units registered in pre-pandemic 2019.
This study, which covered registrations from the 28 enlarged Europe markets, is broadly in line with earlier data showing 1.7% growth from the European Automobile Manufacturers’ Association that covered figures only from European Union markets.
Geographic spread
According to Jato, growth year-on-year was driven by Norway, up 39%, Spain rose 13%, Austria up 12% and Poland increased 8%.
Meanwhile, volumes declined by 7% in Belgium, France down 5% and Italy declined 2% along with Switzerland.
Last year’s biggest auto-producing nations were Germany, which accounted for 21% of total production, followed by Spain with 12% and Czechia at 8%.
Notably, China moved into fifth position in 2025, up from ninth in 2024, driven by a 77% increase in imports to Europe.
“China’s growing influence in the European automotive market is reflected in the numbers,” Daniele Ministeri, Jato’s senior consultant, said in a statement. This is owing not only to the increased presence of brands from China, “but also reflects registrations of European models produced in China, such as the Mini Cooper, Dacia Spring and Cupra Tavascan,” he added.
BEV growth
A total of 2.6 million BEVs were registered last year, with volumes growing 29% compared to 2024 to reach an overall market share of 20%.
A consumer backlash against political interference in European politics by Tesla’s owner, Elon Musk, was partly responsible for the brand’s decline in the market. Instead, Volkswagen won Europe’s best-selling BEV crown in 2025 with 274,000 units registered, up 56% year-on-year.
Growth for the VW Group has been driven by the introduction of the ID.7, which, together with the Skoda Elroq, play an important role in the group’s ability to cut emissions and avoid penalties, said Jato.
However, Tesla slumped 27% year-on-year to overall registrations of 236,357 units, although its Model Y remained the top-selling single BEV model in Europe with 149,805 vehicles registered.
Hybrids surge
Plug-in hybrid electric vehicles also performed well, hitting 1.3 million units in 2025, up 34% compared to the previous year. China’s BYD Seal UDM-i became the best-selling PHEV model, with 72,000 units.
Registrations of full-hybrid electric vehicles grew 10% year-on-year, with Toyota maintaining its leadership position thanks to the popularity of the Yaris Cross, Yaris and Corolla.
Mild-hybrid electric vehicles were the second best-selling powertrain in Europe, growing 16% in 2025 and continuing to steal market share from internal-combustion-engine vehicles, the only powertrain in decline with registrations down 20%.
Extended-range electric vehicles, currently dominated by Stellantis’s joint venture with Leapmotor and its EREV-powered C10, saw 6,000 units registered in 2025 and are being tipped by Ministeri as a sector to watch.
“As a powertrain, EREVs have been growing steadily in China year on year,” he said. “And it’s an area to watch in Europe in 2026, with sales expected to increase as more OEMs introduce this technology.”
