Europe’s car market continued to expand in May as strong demand for electric and hybrid vehicles offset a steep decline in petrol and diesel models, while Chinese automakers strengthened their presence across the region.
According to data released by the European Automobile Manufacturers’ Association (ACEA), total car registrations across the European Union, Britain and the European Free Trade Association rose 3.6 percent year-on-year to 1,152,523 vehicles in May, Reuters reported.
For the first five months of the year, registrations increased 4.5 percent compared with the same period in 2025, reflecting continued momentum in vehicle demand.
Growth was led by electrified vehicles, which continued to reshape the market landscape. Registrations of battery-electric vehicles (BEVs) rose 39.1 percent, while plug-in hybrid vehicles (PHEVs) increased 13.2 percent and hybrid models gained 8.2 percent.
Together, these vehicle categories accounted for more than two-thirds of all new registrations during the month.
ACEA said consumer demand remained strong across major European markets, supported by newly introduced and revised tax incentives and policy measures encouraging adoption of lower-emission vehicle technologies.
At the same time, conventional fuel-powered vehicles continued to lose market share. Registrations of petrol and diesel vehicles each declined by around 19 percent compared with a year earlier.
The shift toward electrification also increased pressure on established European manufacturers.
Registrations for major automakers including Renault, Stellantis and Volkswagen fell between 1 percent and 3 percent in May as competition intensified.
Chinese manufacturers, meanwhile, recorded significantly stronger growth. Leapmotor posted a 465.1 percent increase in registrations during the month, while Chery and BYD reported gains of 244.1 percent and 136.6 percent respectively. Geely and SAIC also expanded their presence, recording growth of 12.6 percent and 13.9 percent.
Tesla continued its recovery for a fourth consecutive month, with registrations rising 107.9 percent to 28,610 vehicles after a prolonged period of weaker performance.
The latest figures highlight how electrified vehicle demand is increasingly driving growth in Europe’s automotive market while creating new competitive pressure for traditional manufacturers.
