With 10,8 million vehicles sold in 2025, the European car market is showing signs of a slight recovery, according to data published Tuesday, January 27, by the European Automobile Manufacturers’ Association (ACEA). This 1,8% increase compared to 2024, however, remains well below pre-Covid levels, when sales exceeded 15 million per year. This modest rebound is primarily driven by electric vehicles.
Electric vehicles are gaining ground
All-electric models are now approaching 2 million registrations in the European Union, representing an increase of nearly 30% in one year. They now account for 17% of the market, compared to 20% in France, boosted in particular by purchase schemes such as the ecological bonus and social leasing, which alone accounted for 50,000 new registrations at the end of the year.
Chinese manufacturers are thriving: the SAIC group (through its MG brand) saw a 34% increase and entered the European top 10. BYD, experiencing strong growth, tripled its sales compared to 2024, riding the wave of its recent title as the world leader in electric vehicles. Conversely, Tesla declined by 38% in Europe, while maintaining success with its Model Y, which remains the top-selling electric vehicle in Europe.
French brands in disarray
Among French manufacturers, Renault is performing well thanks to the Renault 5, the Clio, and the Dacia Sandero. The group is consolidating its third-place position in the European market. Stellantis, on the other hand, is experiencing a decline in sales, particularly for Peugeot and Citroën, while still remaining the second-largest group on the continent. The undisputed leader remains Volkswagen, which finished 2025 with growth across almost all its brands, with the exception of Seat and Porsche.
