Electric Vehicles in Europe Surpass Gasoline Cars for the First Time

EV Share Surpasses Gasoline Cars by 0.1%
Hybrids Lead the Market with Over 30% Share
Electric Vehicle Demand Stands Out in the German Market

Last month, for the first time ever, the share of battery electric vehicle (BEV) sales in Europe surpassed that of gasoline cars. Although the European Union (EU) has entered a phase of "strategic pause" by scaling back its goal of banning internal combustion engine (ICE) vehicles, there is growing consensus that the past decade of stringent environmental regulations and policies to expand electric vehicles are finally yielding tangible results in the automotive market.

Demonstration of Ioniq 5 robotaxi charging using an electric vehicle automatic charging robot. Photo is unrelated to the article content. Photo by The Asia Business Daily DB

According to the European Automobile Manufacturers' Association (ACEA) on January 28, electric vehicles accounted for 22.6% of all vehicles sold in the EU last month, slightly exceeding the 22.5% share of gasoline cars. This marks the first time that electric vehicles have overtaken gasoline cars in market share. As recently as 2024, gasoline cars still held the largest share at 33.3% of the market.

Among vehicles sold in the EU last month, hybrids (HEVs) had the highest share at 33.7%. Hybrid vehicles have served as a bridge in the transition from internal combustion engine cars to electric vehicles, with a 30.9% share in 2024 and 34.5% last year. Plug-in hybrid vehicles (PHEVs) accounted for 10.7% of the market.

Bloomberg reported that this shift is the result of European automakers aggressively promoting electric vehicle sales to meet the EU's strict carbon emission targets. Automakers such as Renault and Volkswagen launched affordable mass-market electric vehicle models last year. In the European electric vehicle market, Tesla's performance lagged while Chinese electric vehicle companies like BYD made significant gains.

The recovery was particularly notable in Germany, the largest automotive market in Europe. Despite the trend toward regulatory easing across Europe, the German Federal Ministry for the Environment considered reintroducing electric vehicle purchase subsidies and strengthened financial support. Other major markets, including France and Italy, also saw robust demand, especially for hybrid and electric vehicles.

Meanwhile, the EU effectively withdrew its plan to ban the sale of internal combustion engine vehicles starting in 2035, a policy originally announced in November of last year. The European Commission unveiled a legislative amendment to lower the required reduction in carbon emissions from new vehicles in 2035 from the original target of 100% to 90%. This marks a step back from the initial plan to allow only electric vehicle sales from 2035, now permitting the sale of some internal combustion engine vehicles, including hybrids and diesel cars. However, automakers are required to offset the resulting carbon emissions by using European steel produced through low-carbon processes and environmentally friendly fuels.

Gillian Davis, an analyst at Bloomberg Intelligence, stated, "With new subsidy benefits and the launch of numerous next-generation models, car sales in Europe are likely to increase again this year."