Europe’s new-car market accelerated in May, with registrations climbing 3.6% to 1.15 million vehicles across the European Union, EFTA countries, and the UK. The increase followed a slow start to the year, as reported by the European Automobile Manufacturers’ Association.
Italy recorded the strongest growth, with a 7.6% rise in registrations. France and Germany also improved, posting gains of 3.7% and 0.1%. Spain was the only major market to decline, with registrations falling 0.8%.
Electric vehicles expanded their presence, claiming 20% of the market in the first five months—up from 15.3% during the same period last year. Italy experienced the largest surge in battery-electric registrations, jumping 75.7%, while France and Germany saw increases of 55.4% and 40.9%.
Hybrids remained the most common choice, accounting for 37.8% of sales with nearly 1.8 million units. Plug-in hybrids also grew, reaching 9.7% of the market, largely due to Italy’s 84.9% rise in registrations.
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Gasoline and diesel cars lost further ground. Gasoline registrations dropped 18.2%, reducing its share to 22.4%, while diesel fell 16.6% to 7.6%. Combined, these fuels now represent just 30.1% of new-car sales, compared to 38% a year earlier.
Volkswagen Group Leads, Chinese Brands Advance
The Volkswagen Group retained its top position, securing 25.8% of registrations in the first five months. Stellantis followed with 15.5%, while Renault took 9.2%. Among major manufacturers, Stellantis, BMW, and Mercedes-Benz posted the strongest gains, increasing 5.3%, 3.3%, and 2.8%.
Chinese automakers saw the most dramatic growth. BYD’s registrations rose 145.2%, Chery’s climbed 316%, and Leapmotor’s soared 552.9%. Tesla also performed well, with sales up 57.2% and more than doubling in the region.
Some brands struggled. Ford’s registrations fell 16.9%, Nissan’s declined 11.4%, and Mitsubishi’s dropped 42.9%. Within the Volkswagen Group, Skoda and Mini improved, while Peugeot, Porsche, and Dacia saw declines.
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May Results Show Contrasts
In May, the Volkswagen Group sold 300,299 vehicles, a 3% decrease from the previous year. Stellantis and Renault also experienced slight declines, while BMW and Mazda recorded modest gains. The steepest losses came from Ford, down 28.3%, and Mitsubishi, which fell 44.7%.
Leapmotor’s 465.1% growth in the EU, EFTA, and UK marked the most striking change. Chery’s brands—including Jaecoo, Jetour, and Omoda—also saw a 244.1% increase in registrations.
The shift reflects a market evolving as traditional automakers maintain their footing while new competitors, particularly from China, expand. Electrification continues to influence demand, though hybrids still lead for now.
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