EV sales rise in Europe, but Tesla struggles
February 25th, 2025
Electric vehicle sales surged across Europe in January, growing by 34% and reaching a 15% market share, despite an overall decline in new car registrations. Total passenger car sales in the EU fell by 2.6%, with major markets such as France, Italy, and Germany experiencing declines, while Spain was one of the few to see growth.
Germany, the Netherlands, and Belgium led the EV boom, with registrations increasing by 53.5%, 28.2%, and 37.2% respectively. Meanwhile, plug-in hybrids saw an 8.5% drop, though hybrid models without plug-in capability accounted for nearly 35% of all new registrations, surpassing petrol-powered cars at 29.4% and diesel vehicles at 10%.
Tesla struggled significantly, with EU sales plummeting by 45.2% compared to January 2024. The company sold fewer than 10,000 vehicles, marking its weakest performance in Germany since July 2021, and a sharp 63% decline in France. Factors contributing to Tesla’s decline include political controversies surrounding its CEO and a slowdown in demand for its aging models. However, the upcoming release of a refreshed Model Y could impact future sales figures.
While Tesla faltered, other EV manufacturers made strong gains. MG, owned by China’s SAIC, saw registrations rise by 36.8%, while BMW increased its pure EV sales by 36%, delivering over 13,700 units across Europe. The BMW iX1, in particular, performed well with a 64% increase in registrations.
Despite an overall drop in new car sales, strong EV demand helped offset losses, with traditional automakers and Chinese brands making notable gains. With new models on the horizon and competition intensifying, the coming months will be crucial in determining whether Europe’s EV market can maintain its rapid growth.