EV and hybrid sales help bolster European car market 

Europe’s car market picked up slightly in May, as robust demand for electric and hybrid vehicles helped offset the drag from a patchy economy hit by global trade tensions. Picture: John Walton/PA

Europe’s car market picked up slightly in May, as robust demand for electric and hybrid vehicles helped offset the drag from a patchy economy hit by global trade tensions.

New-car registrations rose 1.9% last month from a year earlier to 1.11m, according to European Automobile Manufacturers’ Association data on Wednesday. 

Gains in major markets such as Germany, the UK, and Spain lifted the overall numbers, even as France weighed on the total.

In Ireland, the Society of the Irish Motor Industry (SIMI) said earlier this month that new car registrations fell 8.8% last month compared to May 2024, though EV sales continue an upward trend. 

There were 5,832 cars registered in May 2025, compared to 6,398 last year. 

Registrations year to date are up 2.4% (79,301) on the same period last year (77,461).

The overall European improvement comes at a delicate time for the industry. 

Europe’s carmakers are juggling weak demand at home, increased competition from Chinese manufacturers led by BYD and political pressure to continue the shift to cleaner vehicles.

Hybrids were a bright spot in May. 

Sales of plug-in hybrid models surged 46% to more than 100,000 units, as buyers continued to favour options that combine battery power with the familiarity of a fuel tank. 

Sales of other hybrids also gained ground, suggesting many consumers are still hesitant to go electric while EV prices remain high and charging networks uneven.

Sales of battery-electric cars jumped 27%, increasing their total share of the market to 17%, as more models arrived and government incentives remained in place in some countries. 

Still, the pace of adoption remains uneven across the region.

Tesla continued to lose market share. 

The company’s deliveries in Europe fell 28% last month, with growing competition and chief executive Elon Musk’s political persona seemingly hitting demand. 

Volkswagen posted a modest sales bump in May, helped by refreshed versions of its ID.4 sport utility vehicle and ID.7 sedan. 

Its Skoda brand received a boost from the new Elroq, a compact electric crossover that recently went on sale.

Chinese manufacturers continued to show strong growth in Europe last month, according to separate data released on Tuesday by Jato Dynamics. 

They sold 65,808 vehicles across 28 European markets, more than doubling their share to 5.9% from 2.9% a year ago, the research firm said. 

BYD registered nearly as many cars as Tesla last month, Jato said, after outselling the US company for the first time in April.

Some of that growth appeared to come at the expense of Stellantis, whose sales dropped 3% in May as the maker of Jeep and Peugeot vehicles continues to struggle.

The result underscores the challenge new CEO Antonio Filosa faces in turning around the company’s flagging regional performance, where sales have slumped on the back of an aging combustion-engine lineup and EV pricing missteps.

Renault also faces a leadership vacuum, with chief executive Luca de Meo set to step down next month. 

The group’s new registrations rose 4.6% in May, as strong demand for Dacia models offset a drop in Renault brand sales. 

Bloomberg