Cyprus Times

European Car Sales Rise in 2025, Driven by EVs and Chinese Brands

Published January 27, 2026, 08:06
European Car Sales Rise in 2025, Driven by EVs and Chinese Brands

European car sales increased by 2.4% in 2025, reaching 13.3 million vehicles, primarily due to rising demand for electric cars and the arrival of new, more affordable models, such as the Citroën ë-C3 and models from BYD. Despite the recovery, overall sales remain approximately 15% lower than pre-pandemic levels, facing challenges such as tariffs and increasing competition. The surge in electric vehicle (EV) sales was impressive, with a 30% increase and accounting for around 20% of the total market. However, consumer preference for hybrid vehicles, due to the lack of charging infrastructure, led companies like Volkswagen and Porsche to revise their full electrification strategies. Plug-in hybrid sales rose by 33%, making it the fastest-growing category. Economic uncertainty caused by Donald Trump's tariffs negatively impacted sales in the first half of 2025, but the situation improved in the second half. In December, sales increased by 7.6%, with strong performance in Germany and the Netherlands, while France and Spain saw a decline. Furthermore, the European Commission is considering relaxing emission rules, which could delay the full transition to electric vehicles until 2035. Germany announced a €3 billion subsidy program for electric vehicles, including Chinese brands, while BYD saw a significant increase in its sales, closing in on Tesla.