European Electric Car Sales Surge as Tesla Loses Ground in Key Markets

Electric vehicle sales in Europe increased by 27 per cent during the first eleven months of 2025 compared with the same period the previous year. This growth translated to 2.27 million electric cars registered, an increase of nearly half a million zero emission vehicles. Notably, Tesla—the longstanding leader in the sector—suffered a significant downturn, with registrations falling to 129,000, a decrease of 38 per cent or 81,000 cars compared with the previous year.

The decline in Tesla’s market share is attributed to multiple factors, including growing disaffection towards Chief Executive Elon Musk, heightened competition from established manufacturers and Chinese entrants, and the company’s temporary slowdown in deliveries due to model upgrades. Other manufacturers have seized the opportunity to expand their presence. BYD, one of the leading Chinese firms, recorded a 240 per cent increase in sales to reach 110,000 vehicles, while Shanghai Automotive, which owns MG, grew by 39 per cent to 191,000 units sold.

According to figures from the European Automobile Manufacturers Association, electric vehicles now constitute 16.9 per cent of new vehicle registrations within the European Union, compared with 13.4 per cent a year earlier. Across all propulsion types, including petrol, diesel, and hybrid models, total new vehicle sales in the bloc rose by only 1.4 per cent to 9.8 million.

This upswing in electric vehicle adoption disguises a split across the continent. Four countries—Germany, France, the Netherlands, and Belgium—were responsible for 62 per cent of electric car sales in the EU. Germany leads with 490,000 units sold, a 41 per cent increase, representing less than one fifth of total market share. The United Kingdom registered 426,000 electric vehicles, a year on year rise of 26 per cent, now comprising nearly a quarter of all new cars sold.

Meanwhile, markets such as Italy, Spain, and Poland have lagged behind. Italy’s electric car market penetration remains under 6 per cent; Spain is just below 9 per cent; and in Poland, the largest market in central and eastern Europe, it stands at 6.5 per cent.

Despite its setbacks, the overall trajectory for electric vehicles in Europe remains robust, with significant room for further growth as the region moves to stay on pace with climate goals and legislative ambitions for emissions reduction.