European Car Sales Continue Upward Trend as Electric Vehicles Gain Ground
New car registrations across Europe increased in November for the fifth consecutive month, supported by continued growth in electric vehicle uptake across several major markets. Figures released by the European automobile industry body show year on year gains driven largely by rising demand for battery electric and hybrid models in countries such as Germany, Italy and Spain.
Electric vehicles continue to take a larger share of the market. Battery electric cars accounted for around 21 percent of registrations within the European Union, rising to 26 percent in the UK and reaching near total dominance in Norway. This shift highlights the pace of consumer adoption, although it also masks significant differences between individual countries and their charging infrastructure readiness.
Despite the recent improvement in sales volumes, Europe’s automotive sector faces structural and geopolitical pressures. Manufacturers are navigating intensifying competition from Chinese producers, uncertainty around potential US import tariffs, and the financial strain of meeting domestic emissions and regulatory targets while maintaining profitability.
Adding to the uncertainty, the European Commission recently signalled a change in direction on its proposed 2035 phase out of combustion engine vehicles, following sustained pressure from the automotive industry. This policy reversal represents one of the most notable recalibrations of the EU’s environmental agenda in recent years. While this may provide short term relief to manufacturers, analysts continue to view electrification as the dominant long term trajectory for the sector.
Across the EU, the UK and European Free Trade Association countries, total car sales rose by 2.4 percent in November to approximately 1.1 million vehicles. Among major manufacturers, registrations at Volkswagen and Renault increased, while Stellantis recorded a decline following several months of growth.
Tesla experienced a fall in European registrations, despite exceptionally strong performance in Norway, while Chinese manufacturer BYD posted significant gains across the region. Within the EU alone, overall car sales rose by 2.1 percent to almost 900,000 vehicles. Electrified models, including battery electric, hybrid and plug in hybrid vehicles, now account for nearly two thirds of all registrations, reflecting a substantial shift from earlier in the year.
The industry body cautioned that, although momentum has improved, overall sales volumes remain materially below pre pandemic levels, underlining the ongoing challenges facing the European automotive market.
Disclaimer: This article is based on publicly available information and is intended for general guidance only. While every effort has been made to ensure accuracy at the time of publication, details may change and errors may occur. This content does not constitute financial, legal or professional advice. Readers should seek appropriate professional guidance before making decisions. Neither the publisher nor the authors accept liability for any loss arising from reliance on this material.
