Europe’s automotive market recorded growth in May as rising demand for electric and hybrid vehicles offset a sharp decline in petrol and diesel sales, according to data from the European Automobile Manufacturers’ Association (ACEA).
Total vehicle registrations across the European Union, the United Kingdom and the European Free Trade Association increased 3.6% in May to 1,152,523 vehicles. During the first five months of the year, registrations were up 4.5% compared with the same period in 2025.
Electrified vehicles accounted for the majority of market growth, with battery-electric vehicles, plug-in hybrids and hybrid cars all recording increases. Battery-electric vehicle registrations rose 39.1%, plug-in hybrid registrations increased 13.2%, and hybrid vehicle registrations grew 8.2%. Together, these categories represented more than two-thirds of all new vehicle registrations in May.
The ACEA said the market continued to benefit from strong consumer demand for electrified technologies across major European markets, supported by new and revised tax benefits and incentive programs.
In contrast, demand for vehicles powered by traditional internal combustion engines declined significantly. Petrol and diesel vehicle registrations both fell by around 19% during the month, reflecting the continued shift toward electric and hybrid alternatives.
The transition toward electrified vehicles has intensified competition in the European market, with several established manufacturers losing ground. Registrations for Renault, Stellantis and Volkswagen declined between 1% and 3% in May as Chinese automakers expanded their presence.
Chinese electric vehicle manufacturers recorded some of the strongest gains. Leapmotor sales increased 465.1% in May, while Chery and BYD posted increases of 244.1% and 136.6%, respectively.
Other Chinese manufacturers also recorded growth. Geely registrations rose 12.6%, while SAIC increased 13.9%, further expanding the presence of Chinese brands in Europe’s automotive market.
The gains come as Chinese automakers continue to compete aggressively in the electric vehicle sector, where demand has accelerated across European markets. Their expansion has added pressure on traditional European manufacturers adapting to the shift away from combustion engines.
Tesla also recorded a significant recovery in May. The company’s European registrations increased 107.9% to 28,610 vehicles, marking the fourth consecutive month of growth after more than a year of declining sales.
The latest figures highlight the growing importance of electrified vehicles in Europe’s automotive market and the changing competitive landscape as both established manufacturers and new international competitors compete for market share.
