Electric Vehicle Storm in Europe: Record Sales, Shifting Incentives, Intensifying Competition

In the European Union (EU), battery electric vehicle (BEV) registrations in November 2025 skyrocketed by 44.1% year-over-year to 188,730 units, seizing 21.3% of the new car market. This momentum marks a pivotal shift in the continent's move away from fossil fuel cars, per data from the European Automobile Manufacturers' Association (ACEA). Over 16 countries now boast EV adoption rates above 20%.

Major markets fueled the surge: Germany up 58.5%, Italy soaring 132.5%, and Spain climbing 60.9%. Denmark led the EU with BEVs claiming 73.7% of new car sales; private buyers hit 91.2%. Non-EU Norway dominated globally at 97.6% share (19,427 BEVs out of 19,899 total). The Netherlands shone with 48.3% market capture.

This boom unfolds amid subsidy phase-outs in key markets. Norway is gradually ending its EV VAT exemption by 2027. The Netherlands axed its BEV BPM registration tax break in 2025, introducing a €667 flat fee that rises over time.

Denmark bucks the trend, extending a 40% reduced registration tax for EVs through 2026 via its Finance Act. Germany plans to revive incentives in January 2026 after 2023's abrupt halt, offering up to €4,000 for qualifying buyers.

Manufacturer performances diverged sharply. Tesla's EU registrations plunged 34.2% to 12,130, while Chinese rival BYD exploded 235.2% to 16,158. Across broader Europe (UK and EFTA), Tesla held firm only in Norway at 31.2% share.

For January-November 2025, the EU tallied 1,662,399 new BEVs, lifting market share from 13.4% to 16.9%. Hybrids led at 34.6%, as petrol and diesel combined dropped from 45.8% to 36.1%.