Xin Lang Cai Jing·2026-01-27 12:36Core Viewpoint - The European automotive market is projected to see a 2.4% increase in new car registrations by 2025, reaching 13.3 million vehicles, despite ongoing challenges from tariffs and competition, with current sales still about 15% lower than pre-pandemic levels [1][6]. Group 1: Market Performance - In December, European car sales grew by 7.6%, marking the sixth consecutive month of growth, driven by strong performances in Germany and the Netherlands, which offset weaknesses in France and Spain [5][8]. - The recovery in car sales last year was partly fueled by a resurgence in electric vehicle (EV) sales, with a 30% increase in pure electric vehicle registrations, which now account for about 20% of the overall market [3][8]. Group 2: Electric Vehicle Trends - The introduction of more affordable electric models, priced around €20,000 (approximately 165,000 RMB), has effectively stimulated market demand, including models from Stellantis and Chinese brands like BYD [3][8]. - Despite the growth in electric vehicle sales, many consumers are opting for hybrid models due to the underdeveloped charging infrastructure in Europe, leading to a 33% increase in plug-in hybrid vehicle sales, making it the fastest-growing powertrain type in the region [3][8]. Group 3: Policy and Subsidies - The German government announced a €3 billion (approximately 24.78 billion RMB) electric vehicle subsidy plan, which is expected to inject new momentum into the local market and is open to all manufacturers, including Chinese brands that have made significant gains [5][9]. - The European Commission has proposed to relax the planned ban on new gasoline and diesel cars set to take effect in 2035, although this proposal still requires multiple reviews before new fleet carbon reduction targets can be finalized [9].