New car sales in Europe rose 4.9% in October, with electric vehicles outperforming traditional petrol and diesel models, according to data released by the European Automobile Manufacturers’ Association (ACEA) on Tuesday.
Sales across the European Union, Britain, and the European Free Trade Association reached 1.092 million vehicles last month, driven by stronger performance in major markets including Germany and the UK. Registrations at Volkswagen, Stellantis, and Renault rose 6.5%, 4.6%, and 10.6%, respectively, compared to October 2024.
The growth in electric vehicles was particularly notable. Battery-electric, plug-in hybrid, and hybrid electric registrations increased 38.6%, 43.2%, and 9.4% year-on-year, collectively accounting for 63.9% of all new car registrations in the bloc, up from 55.4% a year earlier. In contrast, petrol and diesel sales fell across all major markets.
Chinese carmakers are also expanding their footprint in Europe. BYD’s sales surged 206.8%, giving the company a 1.6% market share, up from 0.5% in October 2024. Registrations for SAIC Motor, another Chinese-owned manufacturer, rose 35.9%. Tesla’s European sales, however, dropped 48.5% compared to last year.
Country-level data showed mixed results. Germany led with a 7.8% increase in new car sales, Spain recorded a 15.9% rise, and France posted a 2.9% gain. The UK saw modest growth of 0.5%, while Italy experienced a slight decline of 0.5%.
Despite these gains, ACEA cautioned that total volumes remain below pre-pandemic levels. “The battery-electric car market share reached 16.4% year to date, yet it is still below the pace needed at this stage of the transition,” the association said.
The European car industry has faced several challenges this year, including trade tensions linked to U.S. tariffs, a slowdown in the Chinese market, and delays in the shift to electric vehicles. Concerns over potential disruptions in the chip supply chain, particularly involving Dutch chipmaker Nexperia, have also weighed on production. At the same time, Chinese electric car exports to Europe have continued to rise, intensifying competition in the market.
Overall, the data highlights the continuing shift towards electrification, even as traditional internal combustion engines lose ground. ACEA noted that electric and hybrid vehicles now represent a growing majority of new registrations, a sign that Europe’s automotive sector is gradually adjusting to the region’s climate goals and emissions reduction targets.
The figures underline a cautious optimism for the industry, showing recovery in key markets and the accelerating adoption of cleaner vehicles, but also underscore the challenges ahead in meeting the EU’s long-term transition objectives.
