For the first time ever, electric vehicles (EVs) have outsold pure gasoline cars in Europe. December 2025 data from the European Automobile Manufacturers’ Association (ACEA) reveals EVs captured a 22.6% market share across the 27 EU countries, narrowly surpassing gasoline vehicles at 22.5%. This milestone signifies a potential turning point in the automotive industry’s shift away from internal combustion engines.
Global EV Growth Remains Strong
While Europe marks a critical shift, the broader trend shows EVs gaining momentum worldwide. Global EV demand surged by 20% in 2025, reaching 20.7 million units sold. China dominates this growth, accounting for over half of all electric car sales last year with 12.9 million units – a 17% year-over-year increase. This growth isn’t universal, however; North America remains an outlier, with slower EV adoption rates.
Hybrid Vehicles Still Lead Overall
Despite the surge in EVs, hybrid vehicles remain the most popular powertrain in Europe, holding a 34.5% market share for the full year 2025. Plug-in hybrids also performed well, exceeding diesel sales for the first time and claiming 9.6% of the total volume. The decline of diesel continues, falling from 10.4% in 2024 to 7.7% last year – a consequence of scandals like “Dieselgate” and automakers phasing out diesel engines in smaller vehicles.
Europe’s Best-Selling EVs
The Tesla Model Y remains a top seller despite a 28% sales decline, with 151,331 units sold in 2025. The Skoda Elroq and Tesla Model 3 follow closely behind, with Renault’s 5 E-Tech and several Volkswagen ID models rounding out the top performers.
Future Trends and Affordable Options
Automakers are preparing to accelerate EV adoption further. Volkswagen plans to launch the ID. Polo and Renault the Twingo, while Dacia is developing a budget-friendly EV to compete with lower-cost Chinese models. Chinese manufacturers are already expanding their presence in Europe, leveraging access to resources and lower labor costs to produce some of the world’s most affordable EVs.
The shift towards electric vehicles is likely to continue as more affordable options become available, potentially reshaping the automotive landscape in the coming years.
The trend suggests that EVs will continue gaining ground, driven by new models and competitive pricing. 2027 is expected to be another strong year for electric cars in Europe, with Volkswagen launching additional EV models, including the ID. Polo crossover and a cheaper hatchback.
