EV sales in Europe overtake petrol cars for first time: Why its matters?

According to the latest data shown on Tuesday, January 27, 2026, fully electric car sales, or EVs, overtook petrol for the first time in December 2025 as the European Union and policymakers proposed to loosen emissions regulations.

Data from the European auto lobby ACEA showed that Elon Musk’s owned, U.S. battery-electric brand, Tesla, continued to lose market share to competitors including China’s BYD and Europe’s best-selling group, Volkswagen.

Car sales throughout Europe sustained a sixth straight month of year-on-year growth, with overall registrations, a proxy for sales, hitting their highest volumes in five years in Europe in 2025, though they remained well below pre-pandemic levels.

Why it matters?

Europe’s car industry faces challenges including competition from China, U.S. import tariffs and difficulties in profitably meeting domestic regulations for electric vehicle (EV) adoption.

The EU unveiled a plan last December to abandon an effective 2035 ban on combustion engine cars, bowing to calls from struggling carmakers.

Electric transport groups argued that a swift EV transition is necessary to curb CO₂ emissions.

According to automobile industry experts, analysts expect EVs to gain popularity despite the policy relaxation.

ACEA data showed sales in the EU, Britain and the European Free Trade Association rose by 7.6% to 1.2 million cars in December and by 2.4% to 13.3 million overall in 2025.

Registrations at Volkswagen and Stellantis rose 10.2% and 4.5%, respectively, that month, while they fell 2.2% at Renault.

Whereas registrations at Tesla fell 20.2%, but rose 229.7% at BYD.

Total EU car sales rose 5.8% to almost one million vehicles in December 2025 and by 1.8% to 10.8 million in the year.

Additionally, December registrations of battery electric, plug-in hybrid and hybrid electric cars were up 51%, 36.7% and 5.8%, respectively, to account collectively for 67% of the bloc’s registrations, up from 57.8% in December 2024.

The new report indicates a strong shift in electric vehicle adaptation could be a smart move to reduce carbon emissions or carbon footprint and lessen environmental challenges.