Growing Preference for Electric Vehicles: Market Experiences Moderate Stability
Electric Vehicles Gain Ground in Europe as Demand Surges
The demand for electric vehicles has witnessed a significant recovery in April, marking the first growth spurt in the European car market this year. According to the industry association ACEA, a total of 1.3 percent more vehicles were newly registered in the European Union compared to the previous year. Notably, electric vehicles saw a surge in sales, with a 33.4% increase, amounting to 145,341 units.
The growth in electric vehicle sales has contributed to an overall increase in the European car market, underscoring a shift in consumer preferences. The market share of electric vehicles rose to 15.3 percent in the first four months, marking a 3 percentage point increase compared to the same period last year.
While electric vehicles are gaining traction, conditions such as purchase incentives, expansions of charging infrastructure, and lower electricity prices need to be improved for widespread adoption, according to ACEA Director-General Sigrid de Vries. She also noted the significant increase in demand for hybrid cars, which have batteries that are charged during the drive, indicating a technology-open approach to the transition to emission-free mobility.
If plug-in hybrids, whose batteries can also be charged at the socket, are included, nearly every third new car in the EU is now a hybrid vehicle. This accounts for around 43 percent of vehicles, surpassing the market share of traditional combustion engines, which currently stands at around 38 percent.
Volkswagen Group, which includes brands like Volkswagen, Skoda, Audi, and Porsche, maintained its leading position, selling almost 260,000 cars in the EU alone in April, marking a 2.9 percent increase compared to the previous year. BMW achieved a sales increase of almost 10 percent to 66,661 cars, while Mercedes recorded a modest 0.7 percent growth to 46,415 vehicles. Stellantis, with brands like Opel, Peugeot, and Fiat, saw a 1.1 percent decrease in vehicle sales, while Toyota registered an 8.6 percent drop. Tesla, led by Elon Musk, experienced a 50 percent decline in sales.
Looking ahead, battery-electric vehicles are expected to account for 17% of the new car market in Europe by April 2025, marking a 26.4% increase in sales compared to April 2024. Plug-in hybrid electric vehicles are also expected to see significant growth, making up 8.8% of new car registrations in April 2025. Hybrid-electric vehicles remain the most popular powertrain, securing 35% of the market, with 1.28 million units registered in 2025, marking a 20.8% increase compared to the previous year.
As the shift towards electric vehicles continues, improvements in charging infrastructure are crucial. Over 1 million public charging points have been installed in Europe by the first quarter of 2025, with significant growth in DC charging points. Competition in the market is also heating up, with BYD emerging as a major competitor to Tesla, notably in electric models.
Key markets like Germany, France, and the Netherlands have seen significant growth in battery electric sales, with varying performances across different models. Volkswagen remains the top electric car brand in Europe, while BYD has outperformed Tesla for the first time, driven by its competitive lineup.
- The growth in electric vehicle sales has sparked a debate about community policies in the European Union, focusing on the development and support for small and medium-sized undertakings in the automotive industry.
- To facilitate the widespread adoption of electric vehicles, attention must be given to financial aspects such as improving purchase incentives and lowering electricity prices, aiming to make electric transportation an attractive and affordable lifestyle choice for consumers.
- The surge in sales of electric vehicles and hybrid cars has created new opportunities for small and medium-sized undertakings in technology and transportation sectors, as companies focus on developing more efficient electric-vehicle models and expanding charging infrastructure.
- Despite the current shift towards electric mobility, it is essential to maintain a focus on innovation and collaboration between small and medium-sized undertakings and established industry leaders to drive advancements in car technology and ensure successful mass production of electric vehicles, including electric-vehicle batteries and electric-vehicle charging systems.
