Invezz·2026-01-27 11:15Core Insights - EU car sales increased by 1.8% in 2025, reaching 10.8 million vehicles, driven by rising demand for electric vehicles (EVs) despite remaining below pre-pandemic levels [1][1][1] Electric Vehicle Market - Battery-electric vehicles accounted for nearly 1.9 million registrations in 2025, representing 17.4% of total sales, up from 13.6% in the previous year [1][1][1] - Hybrid electric cars captured 34.5% of the market, while the combined share of petrol and diesel vehicles fell to 35.5%, down from 45.2% [1][1][1] - Petrol car sales declined by 18.7%, with France experiencing the steepest drop at 32% [1][1][1] - Germany saw a 43.2% increase in electric vehicle sales, with the Netherlands, Belgium, and France also reporting double-digit growth [1][1][1] Competitive Landscape - Tesla's sales in Europe fell by 31.9% in December to 21,485 vehicles, resulting in a market share reduction to 2.2% [1][1][1] - For the full year, Tesla's sales dropped 37.9% to 150,504 units, losing ground to BYD, which saw its European sales nearly triple in December to 18,008 vehicles [1][1][1] - BYD's annual sales increased to 128,827 cars, raising its market share to 1.9% and overtaking Tesla as the world's largest electric carmaker in 2025 [1][1][1] Overall Market Performance - Across Europe, including the EU, European Free Trade Association, and the UK, car sales rose 7.6% in December to 1.2 million vehicles and increased 2.4% over the year to 13.3 million [1][1][1] - Jaguar Land Rover faced challenges, with December sales falling 25.3% to 4,332 vehicles and full-year sales declining 17% to 53,161 units, selling only one Jaguar in December as it transitioned to an all-electric future [1][1][1]