Electrified Cars Boost Europe’s Auto Market While Chinese Brands Gain in May
By Amir Orusov
Electrified Vehicles Drive Growth in Europe’s Auto Market
June 23 (Reuters) - Demand for electrified cars continued to underpin growth in Europe's auto market in May, offsetting a sharp decline in petrol and diesel sales and allowing Chinese brands to expand their footprint, data from the European Automobile Manufacturers’ Association (ACEA) showed on Tuesday.
Market Performance and Registration Statistics
Total car registrations, a proxy for sales, in the European Union, Britain and the European Free Trade Association rose 3.6% to 1,152,523 vehicles in May. For the first five months of the year, registrations were up 4.5% compared with the same period in 2025..
Electrified Vehicles Dominate Market Momentum
Electrified vehicles dominated the market's momentum. Registrations of battery-electric (BEV), plug-in hybrid (PHEV) and hybrid cars climbed 39.1%, 13.2% and 8.2%, respectively, together accounting for more than two-thirds of all new vehicles registered in May.
Consumer Demand and Incentives
"The market continued to benefit from robust consumer demand for a range of electrified technologies across key European markets, sustained by new and revised tax benefits and incentive schemes," the association said in a statement.
Decline in Traditional Internal Combustion Engines
In contrast, demand for traditional internal combustion engines weakened sharply, with petrol and diesel sales falling by around 19% each.
Legacy Carmakers and Chinese Brands
Legacy Carmakers Cede Ground to Chinese Rivals
LEGACY CARMAKERS CEDE GROUND TO CHINESE RIVALS
Legacy European carmakers lost ground amid the transition. Registrations at Renault , Stellantis and Volkswagen slipped between 1% and 3%, reflecting intensifying competition.
Chinese Automakers Achieve Significant Gains
Chinese automakers, by comparison, posted striking gains. Leapmotor's sales surged 465.1% in May, while Chery and BYD jumped 244.1% and 136.6%, respectively. Among other manufacturers, Geely and SAIC recorded increases of 12.6% and 13.9%.
Tesla’s Strong Recovery
Tesla extended its rebound for a fourth consecutive month, with registrations soaring 107.9% to 28,610 units, marking a strong recovery after more than a year of declines.
(Reporting by Amir Orusov; Editing by Matt Scuffham)
