The EU new car market is weakening, but electric cars are booming: While the overall registrations are declining, the e-car market has significant growth despite considerable losses at Tesla.
• EU new car market shrinks
• Tesla with clear declines
• E-cars still grow strongly
The EU new car market shows a declining development in February 2025. According to the European Manufacturer Association ACEA, the new registrations fell by 3.4 percent compared to the previous year, with 6.4 percent recording the strongest decline. However, an opposite picture shows in the area of electric cars: Despite a general downward trend, this market sector recorded a remarkable increase in new registrations by 23.7 percent.
Tesla under pressure: Sales are collapsing
However, the continued decline in sales of the Electric car-Pionier’s Tesla. In February 2025, the new registrations of Tesla vehicles in the EU fell by 47.1 percent compared to the previous year. In Germany, where Tesla runs a factory in the Brandenburg Grünheide, the decline was even 76.3 percent, according to the Federal Motor Transport Authority (KBA).
Industry experts attribute this development to the increasing competition from other manufacturers who have made a strong core. In addition, Tesla suffers from the damage to the image that is based on the controversial role of company boss Elon Musk is attributed. His support for right-wing parties in Europe and his controversial role as a consultant by US President Donald Trump have apparently harmed the company.
Despite Tesla weakness: E-cars on growth course
Despite the weakness of Tesla, the market for electric vehicles in the EU is developing positive as a whole. According to ACEA, the market share of e-cars rose from January to February 2025 compared to the previous year from 11.5 percent to 15.2 percent. The number of new registrations of battery -operated vehicles increased in the first two months of the year by 28.4 percent compared to the same period of the previous year. In addition to electric cars, the new registrations of hybrid vehicles also increased, which rose by 18.7 percent in February. Hybrid cars have the largest market share with 35.2 percent.
“In the largest market in Germany, the sales of electric cars at the beginning of the previous year – after the environmental premium expired – was at a very low level, which leads to impressive growth rates,” said Constantin Gall, car park expert at the advisory company EY, according to Stern.
EU-CO2 rules: pushed out pressure for manufacturers
Ey continues to forecast strong growth rates in electric cars. Due to the EU CO2 rules, manufacturers are forced to reduce the average CO2 emissions of their fleets. However, this pressure is weakened by the planned extension of the deadline to achieve emission requirements. “From the manufacturer’s point of view, this reduces the acute pressure, at short notice and literally, regardless of losses, to increase sales of electric cars,” emphasized Gall according to the star. However, he warned of long-term risks: “The interest in electric cars will not increase to the extent that it is necessary to achieve EU requirements. The problem is only postponed and not solved with the new regulation proposed by the EU Commission.”
Combined in the downward trend
In contrast, conventional combustion engines continued their downward trend according to ACEA: the approvals of petrol engines decreased by 20.5 percent in the EU and only made up for 29.1 percent of the market. After France, Germany recorded the strongest decline in a break -in of new registrations by 24.9 percent. Diesel cars even recorded a decline of 28 percent in the EU, which had their market share shrinked to 9.7 percent.
In almost all EU countries, declining in the new registrations of vehicles with combustion engine in the double-digit percentage range were observed. The data once again underline the ongoing structural change on the European car market towards electrified drives.
Editor finance.net
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