European EV adoption accelerates, hybrids dominate EU sales

European electric vehicle (EV) adoption is showing signs of growth after a turbulent 2024, with the market still navigating the balance between regulatory goals and consumer preferences. In 2025, battery-electric cars captured 17.4% of new registrations in the EU, while hybrid-electric vehicles maintained the largest share at 34.5%, according to registration data. The market share of petrol and diesel vehicles continued to decline, collectively dropping to 35.5% throughout the year.

When looking at the headline numbers for European EV adoption, supply-chain observers are focusing on volume. The European Automobile Manufacturers Association (ACEA) reported that EU battery-electric registrations reached 1,880,370 units in 2025. Growth was particularly robust in key markets such as Germany, the Netherlands, Belgium, and France, where developments in charging infrastructure, fleet acquisitions, and incentives often set the tone for the region.

Despite improvements in model variety and pricing competitiveness, European EV adoption remains uneven due to various factors pulling demand in different directions. Challenges such as charging infrastructure availability and electricity costs continue to be significant, especially for drivers without convenient access to off-street parking. Additionally, European automakers are facing margin pressures while Chinese brands are gaining market share through aggressive pricing strategies and rapid product launches.

Trade policies are now playing a role in shaping the landscape of EV adoption in Europe. Reports from Reuters indicate that Chinese automakers expanded their presence in multiple European markets in 2025, despite efforts by the EU to curb the influx of Chinese-made EV imports through tariff regulations. This dynamic highlights the evolving nature of the market influenced by global trade dynamics.

Furthermore, policy decisions are influencing the definition of "acceptable electrification" in the market. Regulatory frameworks and compliance pathways can impact the demand for battery-electric vehicles, plug-in hybrids, and other electrified powertrains. While European EV adoption is progressing, the current market is still dominated by hybrids, with competition increasingly shaped by pricing strategies, infrastructure development, and trade regulations rather than just product innovation.