Volkswagen AG has started 2025 with an impressive bang — having already surpassed their overall European car market performance from last year. In the first quarter of the year, the automotive giant reported a 4.8% increase in newly registered models within the European Union compared to the same period in 2024. This growth is consistent with a national trend of skyrocketing electric vehicle (EV) sales. At the same time, the broader car market continues to face headwinds due to issues related to global uncertainty.
The success story of Volkswagen’s sporty, value-oriented Cupra model has played an important part in the company’s recent financial fortunes. As Cupra’s flagship model, Volkswagen’s most exciting offering has been well received by buyers, emblematic of the industry’s overall pivot to more sustainable choices. In March, the market share of battery electric vehicles in the EU increased to this year’s 15.2%. This is up from 15% in early January.
By the end of March 2025, new registrations of electric vehicles in Europe had increased an astonishing 23.9%. With this increase the total reached 412,997 units. This strong growth is a testament to the soaring consumer demand for EVs. One major thing that the industry is overcoming is new, stricter emissions regulations and a more environmentally conscious consumer bases.
SAIC Motor led the way in this upward trend, with a staggering 52.3% increase of newly registered models in the EU. This was happening in the context of an overall surge. Even the darling of tech innovation, Tesla, faced tremendous headwinds. Newly registered BEVs in the EU dived by 45% from last year. The company’s troubles seem to be largely attributable to increased competition and changing tastes among consumers.
The diesel car industry really suffered. Namely, a catastrophic 27.1% drop in the first quarter that was 2025! Also, petrol car registrations had a massive decrease too, decreasing by 20.6%. France saw the biggest fall in petrol car registrations, down by 34.1%. Plug-in hybrid electric vehicles were up just 1.1%. This small increase indicates that consumers are interested in a wider range of hybrid types.
Other compelling examples Stellantis had the biggest drop in newly registered models at -14%, and Mercedes-Benz was down 6.2%. As a result, BMW tacked on a relatively paltry 0.4% gain in new registrations. In contrast, Renault Group recorded a very healthy 9.5% increase in models newly registered.
Taken together, the picture for the EU automotive market is still very uncertain. According to the European Automobile Manufacturers’ Association (ACEA), “In Q1 2025, new EU car registrations declined by 1.9% compared to Q1 2024, with March 2025 figures showing a slight 0.2% year-on-year decline as the global economic context remains particularly challenging and unpredictable for auto makers.”
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