Segment: Government

Powerful competition for Tesla in first quarter of 2025

Tesla took the top two spots in the global battery-electric vehicle (BEV) market during the first quarter of 2025. Autovista24 editor Tom Geggus considers how quickly the competition is catching up.

Between January and March 2025, global BEV deliveries increased by 37.8% year on year, according to data from EV Volumes. This brought the sales total to 2.74 million units. March bolstered this performance, with a gain of 38.5% up to 1.13 million deliveries.

Meanwhile, plug-in hybrids (PHEVs) saw lower volumes and growth. With deliveries up by 30% in the first three months of the year, the powertrain recorded 1.56 million sales. After a slightly slower January and an improved February, the global PHEV market grew by 29.2% in March. This equated to 604,046 units taking to roads worldwide.

China led the global PHEV market. 69.8% of all PHEV sales took place in the country in the first quarter. This was up by 3.7 percentage points (pp) from the same period in 2024.

rn

The US followed with 5.3%, down 1.7pp, followed by Germany with 4.1%, up 0.4pp. Then came the UK, accounting for 3.4% of all PHEV sales, down 0.2pp, trailed by Spain, which held on to a steady 1.3% share, stable from the first quarter of 2024.

China led the BEV market with a comparatively lower share of 56%, although this was a year-on-year improvement of 3.8pp. The US was down 2.2pp to 10.1%. The UK picked up 0.2pp with 4.4%, while Germany held steady with 4.1%. France fell from 4.1% in the first quarter of 2024 to 2.8% this year.

Tesla takes top two

The Tesla Model Y emerged as the best-selling BEV globally in the first quarter of 2025. With 201,773 units delivered, it accounted for 7.4% of the all-electric car market. Two markets drove demand, with 40.6% of the Model Y’s deliveries occurring in China and 34.8% in the US.

A more affordable version of the Tesla Model Y was launched earlier in May, as reported by Reuters. The long-range rear-wheel drive version could cost approximately $44,990 (€39,903) in the US, before a $7,500 federal tax credit. The carmaker will be hoping this more accessible pricing will help it stay ahead of its competitors.

rn

In second, the Tesla Model 3 recorded 118,964-unit sales between January and March. This equated to a market share of 4.3%. The BYD Seagull, also known as the Dolphin Mini, finished in third, continuing its move up the year-to-date table. It took a 3.3% market share with 90,044 sales.

The BYD Seagull recently won the 2025 World Urban Car award. A jury of 96 automotive journalists from 30 countries selected the top three finalists by secret ballot. Jurors based this on an evaluation of each eligible vehicle as part of their current work.

The Geely Geome Xingyuan continued its descent, coming fourth at the end of the quarter. It recorded 89,215 sales, with a 3.3% share of the global BEV market. The Wuling Mini was next with a 3.2% hold and 89,185 sales.

In sixth was the Xiaomi SU7 with a 2.8% market share and 75,921 deliveries. The BYD Yuan Up, also known as the Atto 2, soared into the top 10 with a market share of 2.1% and 58,097 sales. The BYD Yuan Plus, known as the Atto 3 in some markets, also climbed the rankings with 57,763 deliveries, representing 2.1% of the market.

The Xpeng M03 fell to ninth in the year-to-date table with a share of 1.7% and 47,130 sales. Finally, the Geely Panda Mini came 10th with 42,792 deliveries and a 1.6% hold of the global BEV market.

Tesla Model Y still leads

The Tesla Model Y was the best-selling BEV in March. However, it recorded a year-on-year drop in sales of 24.7%. 89,016 units were delivered to customers. As a result, its market share was almost halved from 14.4% to 7.8%.

Its sedan sibling, the Tesla Model 3, was able to hold onto second place as its deliveries increased by 30.5% to 54,197 units. However, increased competition meant its market share fell by 0.2 percentage points (pp) to 4.8%.

rn

The Wuling Mini came third with 42,184 deliveries, up by 162.9%, pushing its share from 1.9% to 3.7%. Then followed the BYD Seagull, with sales climbing by 36.7% to 38,276 units, its market share remained static at 3.4%.

Taking fifth, the Geely Geome Xingyuan recorded 32,481 deliveries in its seventh month since launching. It captured 2.9% of the global BEV market. Not far behind was another more recent market entrant, the Xiaomi SU7. In its 12th month in the market, it recorded 29,256 deliveries and took a 2.6% share.

The BYD Yuan Up managed 26,000 sales, taking a 2.3% share. Its stablemate, the BYD Yuan Plus, posted 22,554 global deliveries, a decline of 18.6% year on year. Therefore, its hold on the market slipped by 1.4pp to 2%.

The Wuling Bingo finished the month in ninth with 17,420 sales. This marked a rise of 43.5% as its share remained steady at 1.5%. The BYD Dolphin represented the same amount of global BEV deliveries, with its market hold falling 0.6pp. It saw deliveries decline by 1.9% to 16,910 units.

Eight BYD PHEVs in top 10

BYD took eight of the top 10 slots in the global PHEV table in the first quarter of 2025. The BYD Song Plus, also known as the Seal U, was the best-selling plug-in hybrid with a share of 5%. In total, 78,095 of these models were delivered across the world, nearly three-quarters of which were delivered in China.

rn

The BYD Song Pro was the second most popular PHEV across the world between January and March. With 69,271 units delivered, the models took a 4.4% hold of the market.

The BYD Qin L came third with a share of 3.5% and 53,931 sales. The BYD Qin Plus was next up, recording 53,025 deliveries and a market share of 3.4%. Moving up to fifth place was the BYD Seal 06 with a market share of 3% following 46,893 sales.

The first non-BYD in the PHEV top 10 was the Li Auto L6 with 44,347 deliveries. It also climbed the rankings, representing 2.8% of the market. Meanwhile, the Galaxy Starship 7 dropped to seventh with 42,286 sales and a share of 2.7%.

In eighth was the BYD Destroyer 05, also known as the Seal 05. It held 2.1% of the global PHEV market with 32,789 sales. Only 643 units behind was the BYD Song L with 32,146 deliveries and a 2.1% share. The BYD Han finished 10th, holding 2% of the market after selling 31,880 units.

BYD’s prominent PHEV performance

The BYD Song Plus was the most popular PHEV in March. It saw deliveries increase by 34.4% year on year to 32,201 units. This pushed its market share up by 0.2pp to 5.3%.

The BYD Song Pro finished in second with 26,813 deliveries, down 5.6% as its market share slipped to 4.4% from 6.1% a year prior. The BYD Qin L came third in its 11th month on the market. Its 21,671 deliveries represented 3.6% of all PHEV units sold.

rn

The BYD Qin Plus finished fourth with 20,457 deliveries, down 39.5% year on year. Its market share fell by more than half to 3.4% from 7.2% in March 2024. The BYD Seal 06 reached 18,217 units in its 11th month on the market, representing 3% of all PHEV sales.

With 17,197 units delivered, the Li Auto L6 claimed 2.8% of the market. In seventh, the BYD Han saw sales fall 22.2% to 12,524 units, while its grip on the market slipped from 3.4% to 2.1%.

In eighth, the Galaxy Starship 7 recorded 11,888 sales with a 2% market share. It was followed closely by the BYD Song L with 11,878 units, representing 2% of all PHEV sales. The Chery Fengyun T6, alongside the Tansuo 06, came 10th. It reached 11,786 deliveries and held on to 2% of the market.

German new-car market teetering towards growth as EVs in spotlight

New-car registrations in Germany fell by a narrow margin during April. On the upside, electric vehicles (EVs) drove volumes. Meanwhile, will the new coalition government help the country’s automotive market? Autovista24 journalist Tom Hooker reviews the figures.

Germany’s new-car market dropped by 0.2% year on year in April, according to the latest data from the KBA. A total of 242,704 registrations were recorded. This equated to a difference of just 398 units year on year.

The result marked the country’s 10th consecutive month of delivery declines. However, it was still the market’s best performance since June 2024, which was the last month to see growth. Furthermore, last month had 20 working days, one fewer than April 2024.

Commercial deliveries fell by 0.7% in April and took a 66.4% market share. Meanwhile, registrations to private customers increased by 1.1% and accounted for 33.6% of overall volumes.

‘New-car deliveries fell again in April, resulting in a year-on-year decline of 3.3% in the first four months of 2025,’ explained Robert Madas, Autovista Group’s regional head of valuations. This equated to a total of 907,268 registrations in the year to date, a drop of 30,619 units compared to the same period last year.

‘The overall downward trend in new registrations is problematic for the trade,’ stated ZDK vice president Thomas Peckruhn.

Surging BEV market

Battery-electric vehicle (BEV) volumes surged by 53.5% in April, reaching 45,535 deliveries. This was the technology’s highest monthly volume since December 2023, when private incentives ended for BEVs.

The result extended the current double-digit growth streak for BEVs, which started at the beginning of this year. It also matched January’s year-on-year improvement, which was the powertrain’s biggest rise since August 2023. This was another month influenced by the end of subsidies.

Excluding all-electric vehicles from the overall market figure would have resulted in a steeper decline of 7.6%. BEVs captured 18.8% of total new-car registrations, up 6.6 percentage points (pp) year on year. This was also its highest market share since December 2023.

‘A total of 158,503 BEVs were newly registered from January to April, which corresponded to a market share of 17.5%. Compared to the previous year, this was an increase of 42.8%. However, new BEV registrations fell massively in the first months of 2024 after the expiry of the state subsidy,’ highlighted Madas.

In comparison, the technology recorded a drop of 10.8% from January to April 2024. In this period, it accounted for 11.8% of new-car volumes.

PHEV perfection

Plug-in hybrids (PHEVs) were the best-performing powertrain in April, enjoying a 60.7% surge to reach 24,317 deliveries. This marked its seventh consecutive month of growth, with the most recent four double-digit increases. The technology represented 10% of overall volumes, an improvement of 3.8pp compared to April 2024.

In the year to date, PHEVs saw registrations rise by 46.6%, with 88,116 units. It took a 9.7% market share, up from 6.4%.

Combining BEV and PHEV registrations, the EV market increased by 55.9% last month, with 69,852 deliveries. This was the biggest year-on-year plug-in growth since August 2023 and the highest monthly volume since December 2023. The result also marks four months of double-digit growth for the powertrain grouping.

Excluding EVs from the overall new-car market would have resulted in a 12.8% decline. Plug-ins made up 28.8% of total registrations, the grouping’s greatest share since December 2023 and a year-on-year increase of 10.4pp.

In the first four months of 2025, EV volumes surged 44.1%, reaching 246,619 deliveries. This was a gain of 75,494 units compared to the same period one year ago. Plug-ins captured 27.2% of the market, up from 18.2%.

Government’s unprecedented setback

In May, the German government required two rounds of voting to confirm Friedrich Merz as the new chancellor. This was reported by multiple publications, including the Wall Street Journal. An unprecedented setback in the first round meant he failed to secure an absolute majority in the Bundestag.

As written by the Financial Times, this failure in the initial round marked the first time since the formation of the Federal Republic that a chancellor candidate did not receive a majority vote on the first attempt.

Despite the uncertain start, the nation’s automotive industry bodies welcomed the appointment. They went on to outline what changes are urgently needed in the automotive sector.

‘We congratulate the new Chancellor Friedrich Merz! We expect the governing coalition to quickly tackle the urgent structural reforms that are necessary,’ said ZDK president Arne Joswig.

‘In particular, the reduction of bureaucracy, the reduction of the tax burden on companies and the reduction of the persistently high energy prices. One thing is clear, the companies in the automotive industry finally need more entrepreneurial air to breathe again,’ he commented.

New EV purchase incentives?

Last month, the new government announced plans to introduce purchase incentives for EVs, according to Reuters. This may include PHEVs and models fitted with range extenders to boost an EV’s battery. The coalition also promised tax discounts for company cars, including an exemption from vehicle tax for EVs to last until 2035.

However, no start date or timeline has been announced for these measures. ‘This ambiguity unsettles potential buyers at a time when a growth trend in new registrations of BEVs is emerging,’ the ZDK stated.

The overall new-car market is the closest it has been to growth in months. New incentives could help tip registration figures into the positive.

‘The lack of clarity has continued to lead to uncertainty and a reluctance to buy among EV customers in recent months. However, slightly positive signals in new registrations and increased incoming orders in April gave reason to hope that the market could recover somewhat,’ outlined VDIK president Imelda Labbé.

‘The future government coalition must now quickly follow up its vision of ramping up electric mobility with action. We now finally need clarity for prospective buyers concerning the planned subsidy measures,’ she commented.

‘Chancellor Merz must anchor the subsidy for EVs and the reduction of electricity prices in his immediate action programme in terms of content and time. Even before the summer break, it should be clear to every car buyer what long-term costs they will face when buying or leasing an EV,’ Labbé added.

Petrol market continues decline

Registrations of petrol-powered cars slumped 26.4% in April, with 66,814 units. This was the worst year-on-year performance of any powertrain last month. It also continues a streak of declines over 20%, which began at the start of 2025. Removing petrol from the overall market results in an improvement of 15.4%.

The fuel type accounted for 27.5% of the market, a drop of 9.8% compared to 12 months ago. Petrol’s share has fallen consecutively month on month since August 2024. Last month’s performance also marked the powertrain’s lowest share since August 2023.

From January to April, petrol-powered cars suffered a 26.6% drop in registration, with 256,497 deliveries. This equated to a loss of 92,815 units. It represented 28.3% of the new-car market in this period, down from 37.2% in April 2024.

Diesel’s drop

Diesel-powered cars also struggled in April, falling 18.7% year on year with 37,649 registrations. This marks five consecutive double-digit declines for the fuel type. It captured 15.5% of total volumes, a drop of 3.6pp compared to April 2024.

In the year to date, the powertrain endured a 20.9% slump in deliveries, with 140,611 units. Diesel-powered cars took a 15.5% market share from January to April, down from 19%.

Adding together petrol and diesel figures, the internal combustion engine (ICE) market fell 23.8% in April with 104,463 registrations. This was the powertrain grouping’s fifth consecutive month of double-digit declines. The most recent four came in at over 20%. ICE models made up 43% of new-car deliveries, down 13.4pp year on year.

Across the first four months of 2024, ICE-powered car registrations dropped by 24.7%, with 397,108 deliveries. This was a loss of 129,975 units compared to the same period last year. Removing the powertrain grouping from overall volumes would have seen the market improve by 24.25. ICE models took a 43.8% share in the year to date, down from 56.2%.

Hybrid market improves

The hybrid market enjoyed a 12.2% increase in April, recording 67,379 registrations. The result marked eight consecutive months of growth.

The technology captured 27.8% of total deliveries last month, an improvement of 3.1pp year on year. However, this was the lowest hybrid share since July 2024. The powertrain was just 0.3pp ahead of petrol’s share last month, compared to its 1.7pp lead in March.

From January to April, the technology saw volumes rise by 11%, reaching 259,644 deliveries. This gave it a 28.6% market share, up from 24.9% 12 months prior. The hybrid share also sat just 0.3pp ahead of petrol in the year to date.

Swapping positions

Combining the EV total with hybrid figures, the electrified market grew by 30.9% last month with 137,231 registrations. The powertrain grouping accounted for 56.5% of overall deliveries, up 13.4pp compared to 12 months ago.

Electrified models have effectively swapped positions with ICE. The fossil-fuel’s share is now 0.1pp lower than the electrified market’s share from one year ago.

In the first four months of the year, registrations of electrified models improved by 25%, with 506,263 registrations. The strong improvement was driven largely by EVs, gaining 75,494 units in the year to date, compared to hybrid’s 25,670-unit increase. This gave the powertrain grouping a 55.8% share, up from 43.2%.

More electrified options

‘The continued growth of electric and hybrid models shows that there is demand for electrified cars even without purchase incentives. One of the reasons is that the EVs are now offered in every segment. The wide selection of BEVs within a single brand is appealing to more and more customers,’ stated Madas.

‘Furthermore, many EVs have now reached a price range that is close to the level of conventional ICE powertrains. Discounts for both purchasing and leasing are also creating further momentum in the showrooms,’ he noted.

‘Five years after the initial boom due to the significantly increased environmental bonus, many leased vehicles are returning to dealerships and most customers are leasing new EVs again, as numerous dealers report,’ Peckruhn highlighted.

The ‘others’ category, including hydrogen fuel-cell electric vehicles, natural gas and liquified petroleum gas vehicles, E85/ethanol and other fuels, fell by 16.3% in April. The grouping’s total of 1,010 units gave the category a 0.4% market share, a drop of 0.1pp from one year ago.

From January to April, the powertrain grouping recorded 3,897 deliveries, a decline of 31.7% year on year. The category captured 0.4% of overall volumes, down 0.2pp.

UK new-car registrations suffer worst result in almost three years

Once a pillar of stability in Europe, the UK new-car market is now faltering. April marked its weakest performance since June 2022, raising fresh concerns. Autovista24 special content editor Phil Curry breaks down the latest numbers.

The UK’s new-car market suffered one of its worst results in recent years during April. Latest data from the SMMT shows registrations declined 10.4% in the month. However, several factors combined to cause this drop in deliveries.

The result is the sixth fall in registrations in the last seven months. Only March saw a rise, thanks to the country’s new plate release. The drop in April highlights the frailty of the market, which was one of the strongest in Europe until recently.

rn

April saw the steepest drop in registrations since June 2022, when supply-chain crisis issues hit deliveries. Since then, there have only been seven monthly declines, as the market built itself back. Yet the dramatic drop last month indicates the potential struggles that lie ahead.

Changing UK legislation

April is often a quieter month for registrations in the UK, following on from the busy period in March. However, volumes were also impacted by a later Easter in 2025, which reduced working days compared to last year.

The month also saw the implementation of vehicle excise duty (VED) on battery-electric vehicles (BEVs). The implementation of VED on BEVs will add around £195 to the cost of new models each year, with this rate reduced to just £10 in year one.

In addition, the Expensive Car Supplement on electric models costing over £40,000 (€47,021) also came into effect. The ECS will see £425 added to the standard VED rate in years two to six of registration, increasing costs further.

This may have impacted consumer confidence in the electric vehicle (EV) market, which has recently been the strongest segment. With May offering a return to a normal working-day comparison, it will provide a clearer picture. This is especially true for assessing recent changes in the BEV market.

Are BEVs faltering?

BEV registrations grew 8.1% in April, with 24,558 units taking to UK roads. While this is a positive outcome for the all-electric market, it is the lowest growth in the year to date. January, February and March all saw registrations improve by over 40%, indicating a significant drop in the market during April.

However, the rise did mean that BEVs took a 20.4% market share in the month. This was up by 3.5 percentage points (pp) compared with April 2024.

The fall may be the result of the implementation of VED and ECS. The exemption from these taxes could have been seen as incentives for BEV purchase earlier in the year. Therefore, some potential buyers may be put off by the additional costs in April.

This could raise concerns amongst carmakers, who are trying to adhere to the UK’s zero-emission vehicle (ZEV) mandate. The government has made it easier to avoid fines by increasing the flexibility within the regulations. However, the target of 28% may still be out of reach for many carmakers.

In the first four months of the year, the BEV market was up 35.2%, with 144,749 registrations. This equates to a 20.7% market share, an improvement of 5pp, but below the ZEV mandate target.

The SMMT has again called on the UK government to help boost the BEV market. It has suggested halving VAT on new EV purchases, scrapping or amending the ECS and equalising VAT on public charging to that levied on domestic options. By doing this, the body believes it will send a strong signal to hesitant buyers.

Mixed results for hybrids

Plug-in hybrids (PHEVS) were the only other powertrain in April to record growth. Deliveries of the technology were up 34.1%, reaching 14,073 units. This gave PHEVs an 11.7% market share, up from 7.8% in April 2024.

In the first four months of the year, PHEVs have achieved consistent growth. Between January and April, the market improved by 27.7%, with 67,759 units delivered. This equated to a 9.7% market share, up 1.9pp.

However, full hybrids (HEVs) struggled in April, recording their first decline of the year. With a total of 16,586 registrations, figures were down 2.9% in the month. However, this was just a difference of 495 units compared to the same period last year.

This was the first drop in the HEV market since November 2024. The UK does not include mild-hybrids in these figures, instead merging them into their respective petrol and diesel counterparts.

In this respect, EVs continue to prop up the UK market, while other powertrains struggle. Despite the decline in registrations, HEVs actually improved their market share, by 1.1pp to 13.8%. This was mainly due to poor performances from other powertrains.

The HEV decline in April was not enough to impact the year-to-date results for the technology. Registrations over the first four months of the year rose 14.6%, with 102,591 units making their way to customers. This meant a 14.6% share of the market, up by 1.4pp.

Electrified market poised to dominate UK

With the positive results for the BEV and PHEV markets, the EV sector saw an improvement of 16.3% in April. This was an increase of 5,421 units, and equated to a market share of 32.1%, up 7.4pp. Therefore, EVs made up nearly a third of UK new-car registrations in April.

Over the first four months of the year, the plug-in market was up 32.7%, with 52,425 more units taking to the road. The 30.3% share was an increase on the 23.5% recorded during the same period in 2024.

Adding HEVs into this mix, the electrified vehicle sector gained 9.8% more registrations last month, for a 45.9% market share. The technology has yet to capitalise on the decline of internal-combustion engine (ICE) registrations. However, it is likely just a matter of time before it becomes the dominant segment.

In the year to date, electrified models were up by 26.2%, as 65,464 more new models were delivered to customers. This gave the powertrain grouping a 45% share of total registrations, up by 8.3pp against the same period last year.

ICE drags market down

The UK new-car market’s struggles this year stem from a sharp drop in petrol registrations. April was the worst month of the year so far, with a 22% decline in deliveries.

In total, 58,733 petrol-powered units took to UK roads, a drop of 16,601 deliveries. This is the 13th consecutive month of petrol declines, and the worst drop in that period. Even with MHEVs added into their figures, the powertrain is unable to improve its performance year on year.

This may be due to carmakers prioritising HEV and BEV models in their ranges, reducing the availability of petrol models. It seems buyers are turning away from the market in favour of greener options.

Despite its poor performance, petrol still managed to dominate the market. Its share of 48.8%, however, was down by 7.3pp year on year.

Between January and April, petrol registrations declined 10%, with 345,520 units taking to the road. This gave the technology a 49.3% share of the total, a drop from the 56.5% recorded in the same period last year.

Meanwhile, diesel’s decline continued. The fuel type recorded 6,381 registrations in the month, down 26.2%. Its 5.3% market share was a drop of 1.1pp compared to April 2024, making it the worst-performing powertrain in the month.

Over the first four months of the year, diesel has seen deliveries decline 13.2%, with just 40,214 units registered. This gave the technology a 5.7% market share, down 1.1pp.

Combined, the ICE market fell 22.5% in April, equating to 18,869 fewer units. It still led delivery figures, with a 54.1% share of all registrations, although this was a drop of 8.4pp. In the year-to-date figures, ICE was down by 10.3%, with a 55% market share, down 8.3pp.

How have global EV forecasts adjusted to tariffs?

Tariffs on automotive imports into the US have shaken the industry, but how will electric vehicle (EV) forecasts be affected? Neil King, head of forecasting at EV Volumes, sets out his expectations with Autovista24 editor Tom Geggus.

Since taking office in January, US President Donald Trump has imposed import tariffs on countries around the world. The subjects of these duties have been broad, with rates subject to change.

Most recently, Trump signed orders easing pressure on carmakers by introducing a mix of credits and relief from duties. Accordingly, these companies will be able to offset a portion of tariff costs on imported parts.

Until 30 April 2026, carmakers can claim 3.75% of the manufacturer’s suggested retail price on vehicles built in the US. From 1 May 2026 to 30 April 2027, this rate will drop to 2.5% and then be phased out.

Furthermore, carmakers will not be subjected to stacked tariffs, meaning no cumulative effects from multiple vehicle-related duties. Companies will instead be subject to the highest import rate. So, a carmaker would pay a component’s 25% import duty, but not the on the part’s steel and aluminium as well.

How have all these tariff changes impacted global EV expectations? EV Volumes’ latest forecast highlights the impact on the global light-vehicle market, covering passenger cars and light-commercial vehicles.

Shake up for global forecasts

By the end of 2025, light-vehicle volumes are now expected to grow by 1.2% year on year. This is down from the 1.9% growth outlined in its March forecast. In volume terms, the reduction equates to 600,000 fewer units in 2025 and one million units in 2026.

The downgrade is due to the added economic uncertainty in the wake of the new US goods tariffs and a spiralling trade war with China. There is also the expected earlier withdrawal of the Inflation Reduction Act (IRA) in the US.

However, the global EV share forecast for 2025 has been increased to 23.6%, compared to 22.7% in the March update. An upgraded outlook in China compensated for the reduction in Northern America and adjustments in Europe and the non-Triad region.

rn

EV sales are forecast to grow by 19.2% year-on-year, up from 16% predicted in March. The latest forecast of 21.32 million EV sales globally in 2025 is 700,000 units higher than EV Volumes predicted previously. EVs are forecast to account for 43% of global light-vehicle sales in 2030, rising to a 65.3% share in 2035, and 84.1% in 2040.

Uncertainty in Northern America

Light vehicle sales in Northern America, including the US and Canada, increased by 2.9% year on year in 2024. This followed 12.4% growth in 2023. The EV share rose to 10.3% in 2024, up from 9.4% in 2023.

On 26 March, the US announced a 25% import duty on vehicles. This did come with an adjustment for US parts in vehicles produced in Canada or Mexico. However, even US-built vehicles do not escape unscathed as a 25% tariff applies on the non-US parts.

OEMs cannot fully pass on these new tariffs through higher prices without incurring large sales declines. However, this has not happened in Europe since import duties were increased for EVs built in China.

According to J.D. Power analysis, the average price of new vehicles in the US is expected to increase by 5% by the end of 2025. This translates to an 8% reduction in the sales rate.

However, a ‘pre-tariff bump’ to sales is expected in the second quarter, a trend already recorded in March and April. Prices are then predicted to rise by between 3% and 5% on average in the third quarter. Then the ‘new normal’ of 5% higher prices is expected to take effect from the fourth quarter.

Alongside automotive and goods tariffs, EV Volumes has factored another upcoming hurdle into its forecast. It assumes the IRA, which provides EV tax credits, will be withdrawn in the second half of 2025.

Forecasts lowered

EV Volumes has lowered its 2025 light-vehicle sales forecast for Northern America to 17.67 million units. This equates to a 0.9% year-on-year decline. The long-term outlook has also been reduced due to the lower base.

rn

The EV share of light-vehicle sales in Northern America is now predicted to reach 11.1% in 2025. This is down from the 12% forecast in March. In 2030, this is expected to reach 27.4%, growing to a 45.2% share in 2035, and then 64.1% in 2040.

BEVs are expected to account for 76.7% of EV sales in 2025. This share is projected to rise to 79.5% in 2026, then reaching 89.7% in 2030, 92.9% in 2035, and 94.2% in 2040.

Europe under pressure

Europe’s light-vehicle market grew by a modest 1.7% year-on-year in 2024. This followed the 14% registrations growth in 2023. There is uncertainty surrounding the new US goods tariffs and Europe’s response.

This is in addition to existing regional stresses such as the war in Ukraine. However, EV Volumes does assume a greater risk of rising inflation and energy costs. This may lead to higher interest rates and taxes across the region and downgraded gross-domestic product forecasts.

EV Volumes forecasts that light-vehicle sales in Europe, covering Western and Central regions, will grow by 0.15% this year. This is lower than the 0.65% growth predicted in its March forecast. At just under 15 million units, this outlook falls far short of the 18 million light vehicles registered in Europe in 2019. Additionally, the European market is not expected to return to this level during the current forecast horizon to 2040.

European EV deliveries fell by 2.2% year on year to 3.07 million units in 2024, representing a 20.5% market share. This is compared to 21.3% in 2023. This was mostly because of changes in EV subsidies. This includes shifts in France, Germany and Ireland. Incentives also fell during the year, especially for PHEVs. Even EV-friendly Norway ended its VAT exemption.

Most legacy OEMs could stay safely below their CO2 limits without selling more EVs. There was even a clear year-end push on ICE vehicles in many markets. This was so the models would not count towards the lower average emissions targets from 2025.

Positively, more affordable BEVs such as the Citroen e-C3 are rolling out. BYD also has regional expansion plans, as do other Chinese OEMs. Furthermore, Germany is considering a possible reintroduction of BEV incentives. However, this may not be implemented given the current socio-economic climate.

BEV growth to continue

Considering the latest changes to the EU CO2 emissions targets, EV Volumes forecast that European EV sales will increase by 14.3% this year. Therefore, 3.51 million units will likely be sold by the end of 2025, equating to 23.4% of all light-vehicle sales. This is higher than the 20.5% share achieved in 2024 and the 21.3% gained in 2023.

rn

BEV volumes are forecast to grow by 20% this year, accounting for 71.8% of EV sales. Meanwhile, PHEV deliveries are only expected to increase by 2.8%. The rollout of new EVs and the EU’s latest CO2 emissions targets will also influence market developments.

EV Volumes foresees EVs capturing 26.4% of European light-vehicle sales in 2026. By 2027, these powertrains are forecast to account for one in three new vehicle registrations.

Economic stimulation in China

China’s EV growth continued last year, supported by greater price competitiveness. A scrappage scheme was introduced in April 2024, encouraging vehicle replacements through higher incentives. This programme has been extended to 2025, meaning there is continued support for EVs in China.

The country is currently facing a challenging economic situation. So, the government is attempting to stimulate domestic consumption while addressing deflation and the BEV price war. State-owned OEMs are seeing considerable support as a result.

The spiralling trade war with the US has also compounded the challenge. There are concerns about the country reaching its growth target of 5% this year. EV Volumes now expects the country’s light-vehicle market to reach 26.69 million units in 2025. This equates to 2.7% year-on-year growth.

Chinese OEMs will continue to roll out countless new PHEVs and extended-range electric vehicles, exacerbating their appeal. EV Volumes forecasts these powertrains will capture a 44.5% share of the EV mix in 2025. However, BEVs are expected to gain ground from 2026 onwards.

In the medium and long term, EV Volumes’ China forecast is not restricted by target shares or capacity limitation. EVs are forecast to account for 52.6% of light-vehicle sales in 2025, and 73.8% in 2030. Come 2035, they are expected to make up 89.3% and 96.5% in 2040.

rn

Growth rates could suggest even faster electrification, but EV Volumes remains cautious because of regulatory and economic uncertainties. This forecast for China shows retail sales, not wholesale, for historic and forward volumes. This excludes exported units and inventory build-up.

Non-Triad region to see growth

Light-vehicle volumes in the non-Triad markets rose for the fourth consecutive year in 2024. EV demand is increasingly supported by a wider availability of products, higher incentives, and lower import duties in some countries.

EV sales reached 1.34 million units last year, representing a year-on-year growth of 32.6%. In 2024, the EV share increased to 4.4%, bolstered by EV incentives in countries such as India, Malaysia, Thailand, and Colombia.

The region is feeling added economic uncertainty stemming from the new US tariffs, and government responses. EV Volumes has therefore lowered its growth forecast for light-vehicle sales in 2025 to 1.7%. This is down from the 2.3% assumed in March.

A strong performance is still anticipated in the first half of 2025. However, an even greater slowdown is now expected in the second half. There is a greater risk if tariffs are applied at the elevated levels in place before the 90-day grace period took effect on 9 April. The 2025 EV share forecast for the non-Triad countries sits at 5.85%, translating to 1.8 million EV sales.

Additionally, countries like South Korea and Japan continue to offer financial support for PHEVs. South Korea has even reduced subsidies for BEVs and increased support for hydrogen fuel-cell models. However, incentives and tax breaks could be in jeopardy if governments need to introduce measures to counter an economic downturn.

rn

The EV share of non-Triad light-vehicle sales is predicted to rise to 16.8% in 2030, 41.6% in 2035, and 76.7% in 2040. This trails global EV adoption by five to six years. Many developing countries impose high tariffs on vehicle imports. Unless EVs are exempted, these countries will need to develop their own EV industry to catch up with more mature markets.

Tesla tops surging European BEV market despite drop in deliveries

Europe’s battery-electric vehicle (BEV) market surged in February, as plug-in hybrid (PHEV) registrations stagnated. Tesla led BEV sales, despite dropping deliveries. Tom Hooker, Autovista24 journalist, assesses the data.

European BEV sales soared by 25.6% in February, reaching 166,319 units. This equated to a gain of 33,924 deliveries year on year. The improvement followed double-digit growth in January. BEV volumes grew by 30.3% across the first two months of the year, reaching 331,890 registrations.

Conversely, PHEVs have struggled so far this year. The technology declined by 0.9% in February, with 72,421 sales. This was its lowest monthly figure since August 2024. The technology delivered 149,149 units between January and February, equating to a decline of 2.5%.

Compared to 12 months ago, BEVs increased their plug-in market share. The powertrain made up 69.7% of volumes in February, an improvement of 5.3 percentage points (pp) year on year. Meanwhile, PHEVs fell from a 35.6% share to a 30.3% hold of the market.

Tesla tops table

The Tesla Model Y was Europe’s best-selling BEV in February, recording 9,173 registrations. The win came after the crossover fell to third in January.

The model reclaimed the lead despite deliveries declining 54.4% year on year, representing a loss of 10,785 units. It accounted for 5.5% of total BEV sales in the month, down 9.6pp compared to February 2024.

rn

It sat 2,201 deliveries ahead of its sibling, the second-place Tesla Model 3. The sedan posted 6,972 registrations, a 14.2% drop from one year ago. However, this can be seen as a positive result for the sedan, which finished 11th in January. The Tesla Model 3 captured 4.2% of the market, down from 6.1%.

Tesla appeared in headlines recently as it was targeted by vandals and protestors. It faced backlash at its German plant, with employees demanding better working conditions, according to the Financial Times (FT).

Record Renault 5 result

Third went to the Renault 5, recording 6,264 deliveries with the Alpine A290. This was the hatchback’s highest finish and unit total since it began registrations in June 2024. It represented 3.8% of overall BEV sales.

Just 45 units behind was the Volkswagen (VW) ID.4 in fourth, with 6,219 deliveries. The model improved volumes by 167.3% year on year. Its share increased to 3.7% from 1.8%.

The carmaker is expected to lower its financial forecast for the current fiscal year, as reported by Handelsblatt. Analysts at UBS expect that US automotive tariffs will likely reduce the margins and profits of multiple German carmakers.

The Skoda Enyaq finished fifth in the BEV table, thanks to 5,681 registrations. This marked a 33% rise in sales. Yet, this was its lowest monthly figure since July 2024. It provided the SUV with a 3.4% share, up 0.2pp compared to 12 months ago.

More VW BEVs

The VW ID.7 finished sixth with 5,475 deliveries. While this marked a substantial increase from a year ago, February 2024 only marked its sixth month of sales. The BEV made up 3.3% of the market, growing from its previous 0.4% share.

Its sibling, the ID.3, followed in seventh, recording 5,362 registrations. This marked a 109.2% increase year on year. It accounted for 3.2% of overall BEV volumes, up 1.3pp compared to last February.

The Kia EV3 was just 22 units behind, with 5,340 sales in its fifth month of deliveries. The crossover also took a 3.2% market share. The model recently won the World Car of the Year title, judged by a panel of 95 automotive experts from 30 countries. This adds to its accolades, following on from its UK Car of the Year title.

The brand recently announced the rollout of its generative AI-powered voice assistant to customers in Europe. The system allows users to engage in smooth and natural conversation with their Kia.

In ninth was the Audi Q4 e-tron, reaching 5,120 registrations. Compared to February 2024, this equated to a 29% improvement. The SUV captured 3.1% of the market, up from 3%. This meant that five VW Group models featured in February’s top 10 BEV table.

The Citroen e-C3 landed 10th, with a record 4,987 units in its 11th month of deliveries. This gave the BEV a 3% market share.

Tesla back in first

Across the first two months of 2025, the Tesla Model Y was Europe’s best-selling BEV, thanks to its February performance. This meant the crossover jumped from third to first in the year-to-date table, recording 15,091 registrations. It made up 4.5% of total registrations.

rn

The VW ID.4 remained in second, with 13,060 deliveries and a 3.9% market share. Then came the Skoda Enyaq which dropped from the lead, posting 12,398 sales and a 3.7% share.

The next two models retained their positions from January. VW’s ID.7 finished fourth, with 11,384 units and accounting for 3.4% of overall volumes. The Kia EV3 was 140 units behind, also taking a 3.4% market share.

The combined total of the Renault 5 and Alpine A290 rose to sixth, recording 10,880 registrations. The hatchback models made up 3.3% of the market in the first two months of 2025. This meant the VW ID.3 fell by one position to seventh, with 10,831 deliveries and a 3.3% share.

After a positive February performance, the Tesla Model 3 stepped up to eighth. The sedan took a 3.3% market share with 10,798 sales. The result meant that positions six to eight were separated by just 82 units.

The Audi Q4 e-tron fell one spot to ninth, recording 9,600 registrations and capturing 2.9% of the BEV market. Rounding out the top 10 was the BMW iX1, which represented 2.5% of BEV volumes with 8,195 deliveries. Like VW, UBS analysis forecast a worsening financial situation for BMW, with returns and earnings expected to fall this year.

Volvo victorious again

The Volvo XC60 was Europe’s best-selling PHEV for the fifth consecutive month, thanks to 4,180 registrations in February. However, this was the SUV’s lowest volume month since August 2024 and marked a year-on-year decline of 2.2%. It accounted for 5.8% of overall PHEV sales, stable from February 2024.

rn

News broke towards the end of March that the carmaker will recall just under 73,000 PHEVs across the world. This includes around 8,000 units in Sweden and 4,825 units in Germany, according to Auto Motor und Sport.

When the battery is fully charged, parked vehicles may experience a short circuit in the high-voltage battery, according to electrive. Owners have been advised to avoid charging their cars. XC60 PHEVs built between 2020 and 2022 are affected, along with S60, S90, V60, XC60, XC90, and V90 models.

Fine performances

The Ford Kuga came second in February’s PHEV table, with 3,487 deliveries. This was a growth of 12.8% compared to 12 months ago. It made up 4.8% of sales, up 0.6pp year on year.

Just 40 units behind was the VW Tiguan, reaching 3,447 registrations. This marked an increase of 278.4% year on year. The SUV also accounted for 4.8% of the market, surging from its previous 1.2% share.

The BMW X1 finished fourth in February, with 3,198 sales, an improvement of 23.5% compared to one year ago. Yet, this was its lowest monthly figure since August 2024. The PHEV took a 4.4% market share, up 0.9pp.

In fifth was the Toyota C-HR which posted 3,015 units. The model has slowly ramped up deliveries since February 2024. It captured 4.2% of the market.

The C-HR may face increasing internal competition in the future. Nikkei reported that Toyota aims to have about 15 electric vehicle (EV) models developed by 2027. This would triple the size of the carmaker’s current plug-in range.

BYD expands in Europe

The BYD Seal U came sixth after completing one full year of deliveries. The model recorded 2,180 sales in February, giving it a 3% market share.

The manufacturer has recently launched in Slovakia and Czechia, electrive wrote. BYD is also building a research base in the UK, as reported by The Independent. However, the European Commission is investigating whether China provided unfair subsidies for BYD’s Hungary plant, as told by the FT.

In seventh was the Cupra Formentor, with 2,090 registrations. This was an increase of 7.7% year on year. The PHEV accounted for 2.9% of overall volumes, up from 2.7%.

The BMW 5-Series placed eighth, posting 1,944 deliveries and recording a growth of 83.4% compared to 12 months ago. This gave the sedan a 2.7% market share, an improvement of 1.2pp from February 2024.

Ninth was taken by the Mercedes-Benz E-Class. The model reached 1,870 sales in the month, a 51.5% rise year on year. It represented 2.6% of total registrations, up from 1.7%. Alongside VW and BMW, UBS analysts also expect losses and a decline in operating profit at Mercedes-Benz.

The Hyundai Tucson rounded out February’s top 10, with 1,785 units. This marked a year-on-year growth of 13.6%. It captured 2.5% of the market, up 0.4pp.

Stable PHEV standings

Across the first two months of the year, the Volvo XC60 extended its lead to 2,105 units over its nearest competitor. The SUV recorded 9,104 sales, giving it a 6.1% share.

rn

Second place went to the VW Tiguan, with 6,999 registrations and a 4.7% share. Then came the BMW X1 with 6,491 deliveries, making up 4.4% of overall PHEV volumes. The Ford Kuga was just 45 units behind, reaching a market share of 4.3% thanks to 6,446 sales. Toyota’s C-HR came fifth with 5,753 registrations, capturing 3.9% of the market.

The Hyundai Tucson secured sixth with 4,173 deliveries, equating to a 2.8% share. This meant the top six kept their positions from January’s table. However, every model from seventh to 10th did not feature in January’s standings.

The Cupra Formentor came seventh, reaching 4,142 registrations and a 2.8% share. Then came the BYD Seal U with 4,035 units, representing 2.7% of total volumes. BMW’s 5-Series landed ninth, with 3,994 sales and a 2.7% share. Rounding out the top 10 was the Mercedes-Benz E-Class, recording 3,799 deliveries and taking a 2.5% share.

Uplifting BEV result accelerates new-car market growth in Spain

As other major European markets faltered, Spain continued its growth streak across the first quarter of 2025. Electrified powertrains, including battery-electric vehicles (BEVs), drove the improvement. Tom Hooker, Autovista24 journalist, analyses the data.

A total of 116,725 new cars took to Spanish roads in March, an increase of 23.1% year on year. This equated to a gain of 21,885 units. This was Spain’s seventh consecutive month of growth and marked its highest monthly volume total since July 2020.

The latest data from ANFAC shows that the new-car market improved by 14.1% in the first quarter, with 279,368 registrations. Last month’s surge ensured this double-digit growth, after increases of 5.3% in January and 11% in February.

rn

However, the market’s improvement has been aided by a later Easter, with the holiday period falling in April. Last year, it occurred in March.

‘It should be borne in mind that the calendar effect allows us to account for one more working day than in March last year, a circumstance that favours the comparison and allows us to narrow the gap with respect to pre-pandemic levels,’ explained Tania Puche, director of communication at Spanish dealership association GANVAM.

The positive performance in the year to date contrasts with other major European markets. France saw deliveries slump by 7.8% from January to March, Germany dropped by 4.3% and Italy declined by 1.6%. However, Spain remains firmly behind these three markets in terms of total volume.

‘We closed the first quarter of the year with a significant increase of 14%, which was also affected by the 15,025 cars that have been purchased to replace those damaged by the DANA in the province of Valencia [at the end of last year],’ commented director of communication and marketing at ANFAC, Félix García.

BEVs soar in Spain

BEV registrations soared by 92.7% in Spain last month, reaching a total of 8,101 deliveries, according to Autovista24 calculations.

This was nearly double its total from March 2024 and made it the best-performing major powertrain in terms of percentage growth. The technology took a 6.9% market share in the month, up 2.5 percentage points (pp).

rn

In the first quarter, BEV deliveries surged by 68.8% to 19,225 units. This equated to an increase of 7,839 units. So far this year, all-electric vehicles recorded the biggest volume growth each month across all major powertrains. The technology accounted for 6.9% of overall volumes in the first quarter, an improvement from its 4.6% share of 12 months prior.

PHEVs follow suit

Plug-in hybrids (PHEVs) also had a positive month. Registrations of the powertrain rose by 50.6% in March, reaching 8,369 units, according to Autovista24 calculations.

The gap between PHEVs and BEVs has narrowed, with the all-electric powertrain now just 268 units behind. In March 2024, BEVs trailed the technology by 1,356 deliveries. PHEVs made up 7.2% of the market last month, up 1.3pp year on year.

Across the first three months of 2025, deliveries of the powertrain grew by 30.7% to 20,512 units. The technology has managed double-digit growth in every month so far this year. The smallest growth was recorded in January at 14.5%. PHEVs took a 7.3% share in the quarter, up from 6.4% in the same period last year.

Combining PHEV and BEV deliveries, the electric vehicle (EV) market jumped 68.7% in March, with 16,470 units. Plug-in models represented 14.1% of overall new-car volumes. This was an increase of 3.8pp compared to 12 months prior, according to Autovista24 calculations.

In the year to date, EV registrations rose by 46.7%, reaching 39,737 sales. This equated to a gain of 12,651 units year on year. The technology captured 14.2% of the market from January to March, up from an 11.1% share.

Spain moves EVs forward

The Spanish EV market may get a registration boost this year, as the MOVES III programme was retroactively extended to the end of the year, effective from 1 January 2025. It provides individuals with a subsidy of €7,000 when purchasing a BEV, PHEV or hydrogen fuel-cell vehicle.

‘We appreciate the effort made by the government to renew the MOVES plan throughout 2025 retroactively. We believe that there will be a significant stimulus to demand,’ stated García.

However, the full incentive amount is only available when scrapping a vehicle over 10 years old, according to Euro Weekly News. Without scrapping, the subsidy drops to €5,500. Meanwhile, PHEVs with an electric range of 30km to 90km are still eligible for up to €5,000.

‘The expected retroactive reactivation of MOVES is good news to maintain market momentum in the coming months, although it is necessary to implement a national direct aid plan to facilitate access for all incomes to efficient vehicles and contribute to renewing a vehicle fleet that does not stop ageing,’ noted Puche.

The programme officially ran out at the end of last year, after being launched in 2021. With the previous structure, some individuals had to wait up to two years to receive the grant,  as reported by electrive.

The Spanish government has contributed a further €400 million to the scheme, raising the total funds of the incentive to over €1.7 million.

Tax break extended

Furthermore, the tax break for EVs will be extended. A 15% personal income tax reduction of up to €20,000 is available when buying a plug-in model, according to electrive.

‘The renewal of the MOVES Plan and the 15% deduction in personal income tax on the purchase of EVs comes at a key moment to maintain the dynamism of the market seen in this first quarter and, above all, to provide certainty to the end customer,’ said Raúl Morales, communication director of Faconauto.

‘With a budget of €400 million, the plan offers the necessary security framework to boost demand. From dealerships, we were already detecting a 50% drop in orders for electrified vehicles because of the lack of visibility on the subsidies. Therefore, this renewal is excellent news for both consumers and the sector as a whole,’ he continued.

Hybrids lead Spain

Hybrids continued to comfortably lead Spain’s new-car market in March. The technology posted a 44.8% increase in deliveries, with 49,095 models taking to the country’s roads. This represented an additional 15,192 units registered compared to one year ago, according to Autovista24 calculations.

This improvement alone made up 69.4% of the overall new-car market’s unit gain compared to March 2024. Hybrids accounted for 42.1% of total volumes, surging 6.4pp and putting it a considerable distance ahead of all other powertrains. ‘It is practically no longer news that hybrids are the most chosen,’ highlighted García.

Deliveries of the powertrain grew by 36.6% in the first quarter, with 121,559 registrations. This was a 32,576-unit increase on 12 months ago and almost matched the overall market’s year-on-year gain. Hybrids captured 43.5% of the new-car market in the first quarter, up from a 36.3% share recorded one year ago.

Adding hybrids to the EV figures, the electrified market dominated Spain. The powertrain grouping saw sales improve by 50.2% in March, capturing 56.2% of the total market. This was an increase of 10.2pp year on year.

Across the first three months of 2025, electrified deliveries rose by 39%, equating to a gain of 45,226 registrations. The powertrain grouping made up 57.7% of overall volumes, up from a 47.4% share during the same period last year.

Diesel down in the dumps

Diesel was Spain’s worst-performing major powertrain in March, both in terms of volume and percentage decline. Sales of the fuel type slumped by 28.4% in the month, with 6,151 units, according to Autovista24 calculations. This gave it a 5.3% market share, a drop of 3.8pp year on year.

In the first quarter, diesel deliveries declined by 33.3%, with 16,276 sales. Despite the slump, March was the powertrain’s best performance so far this year, after drops of 34.1% in January and 37.7% in February. Diesel-powered cars captured 5.8% of total registrations, down from 10%.

Petrol suffers in Spain

Petrol also suffered a double-digit decrease last month. The fuel type saw 38,461 units delivered in March, a decline of 4.8% compared to 12 months prior. The powertrain took a 33% market share, a drop of 9.6pp on March 2024.

Across the first three months of the year, petrol-powered car deliveries fell by 9.6%, with 87,763 sales. March saved the fuel type from an overall double-digit decline, after drops of 11% in January and 14.3% in February.

This figure was 33,796 deliveries behind hybrids’ total. One year ago, petrol led the technology by 8,074 units in the first quarter. This shows the development the market has made in the last 12 months. Petrol-powered cars made up 31.4% of overall volumes, down 8.2pp from the same period in 2024. This was also 12.1pp behind hybrids.

Combining petrol and diesel deliveries, the internal combustion engine (ICE) market fell by 9% in March, according to Autovista24 calculations. This represented 38.2% of the total market, down from its 51.7% share recorded one year ago.

In the year to date, the powertrain grouping saw registrations decrease by 14.3%. This equated to a loss of 17,415 units. ICE cars took a 37.2% market share, down 11.8pp year on year. This was also 22.4pp behind the electrified result. During the same period in 2024, ICE models matched the powertrain grouping’s share.

The Automotive Update: Big week for BYD

BYD has a big week, Nvidia reveals its latest autonomous technology developments, and many model updates. Autovista24 editor Tom Geggus presents the latest stories in The Automotive Update podcast.

This week, carmakers confirmed new artificial intelligence (AI) applications. Europcar revealed plans to address electric vehicle (EV) price parity. Renault unveiled a sporty version of its new Renault 5, and MG gave one of its most popular models a facelift.

rn

Subscribe to the Autovista24 podcast and listen to previous episodes on Spotify, Apple and Amazon Music.

BYD’s game-changing platform

BYD has unveiled its ‘Super e-Platform’. The EV technology could be capable of charging at speeds of 1,000kW Reuters reported. This means the system could deliver 400km of range after five minutes of charge.

The new BYD Han L sedan, and Tang L SUV, will be the first models fitted with the technology. The news sent the carmaker’s stock soaring, according to the Wall Street Journal.

However, it was not all good news last week. The Financial Times (FT) reported that BYD faces a European Commission investigation. The probe is exploring whether China provided unfair subsidies for its EV plant in Hungary. If the European Commission finds the company has benefited from unfair state aid, penalties may be imposed.

The FT also drew attention to a delay in the approval of a BYD plant in Mexico. Meanwhile, the carmaker’s executive vice president, Stella Li, told Autocar there are no plans for BYD plants in Germany or the UK. However, she did confirm to the Independent that the UK will be home to a new research and development centre.

Nvidia unveils autonomous developments

At its GTC AI conference, technology company Nvidia revealed its latest autonomous and AI-based developments. The business confirmed the launch of Halos, a full-stack safety system. It brings together its hardware and software solutions for autonomous vehicles.

It also unveiled an open-source data set to help developers with physical AI projects. Data focused on developing autonomous vehicles will be made available. This includes 20-second clips of traffic scenarios from over 1,000 US cities as well as two dozen European countries.

Nvidia also announced some major collaborations at the event, including a tie-up with General Motors (GM). The companies will work together to build custom systems to train AI manufacturing models.

GM will also use Nvidia’s Drive AGX for future advanced driver-assistance systems (ADAS) and enhanced safety experiences. 

Carmakers increase use of AI

Volvo Cars has revealed it will use realistic, AI-generated virtual worlds to develop its safety software, including ADAS. The carmaker can work with incident data gathered from sensors in its new cars. This will allow it to reconstruct and explore how incidents could be avoided.

Mercedes-Benz confirmed the deployment of AI features at its Berlin-Marienfelde site. This includes humanoid robots, advanced chatbots and virtual assistants. The site will also soon produce high-performance electric axial-flux motors. 

EV market developments

Japanese carmaker Mazda has outlined a ‘lean asset strategy’ when it comes to electrification.

The brand will reduce investment in batteries, production, and EV development, through collaborations and partnerships. It will focus on existing resources as well as more efficient development and manufacturing methods.

Meanwhile, Foxconn and Mitsubishi are reportedly close to an EV production deal. According to people familiar with the matter, an announcement is expected in the coming weeks. The FT reports that any venture will allow Mitsubishi to expand its line-up of models at a lower cost.

Europcar Mobility Group UK is aiming to bring electric vehicle price parity to its rental offering. As of April, business customers will be able to rent EVs for the same price as an internal-combustion engine counterpart.

‘We understand that cost is a significant factor for businesses considering electric vehicles,’ commented Tom Middleditch, head of electric mobility at Europcar Mobility Group UK. ‘The Europcar EV barometer for 2024 revealed that the cost of purchasing and maintaining an EV is a barrier for around 40% of fleets.’

New EV’s from Renault

Renault has revealed an electric reboot of the Renault 5 Turbo and Turbo 2. The Renault 5 Turbo 3E has been built for rallying, drift and track performance, but adapted for the road.

The highly customisable model will feature an 800-volt architecture. This means it will be capable of going from 15% to 80% battery in 15 minutes at a 350kw DC charging point. It will arrive in showrooms in 2027, with a limited production of 1,980 units.

The carmaker also unveiled the new Renault Espace. The full hybrid vehicle features a redesigned front and rear, new light signatures and body colour. Passenger comfort is enhanced, with new front seats and upholstery, as well as improved soundproofing.

Fresh-faced models

MG revealed a redesigned MG4. electrive reports that the BEV has been elongated by 11cm and features redesigned styling with softer curves. It also has new EV hardware, including a smaller motor.

Aito unveiled revised versions of its M5 and M9 models, both of which have undergone facelifts, electrive wrote. The online platform also reported that Xpeng has launched the latest editions of its G6 and G9 electric SUVs. Both models will get new battery packs with faster charging capabilities and will be available in Europe and China.

In the UK, Leapmotor has opened its order books for its affordable T03 and C10 electric vehicles. T03 prices start at £15,995 (€19,090), while the C10 is priced at just £36,500.

BYD is also setting its sights on the UK’s small and affordable EV segment with the BYD Dolphin Surf. Known as the Seagull in China, the model is expected to cost below £20,000 in the UK, according to Autocar. BYD has also made the Atto 2 available in Germany according to electrive.  

SMMT Electrified: Charging infrastructure and government support key to UK EV growth

Despite the UK’s battery-electric vehicle (BEV) sales leading the way in Europe last year, challenges lay ahead for the market. Phil Curry, Autovista24 special content editor, reports on the recent SMMT Electrified conference.

The UK’s electric vehicle (EV) market is facing several challenges that could disrupt the growth seen in recent years. From a lack of charging locations to challenging sales targets, there are many roadblocks to consider.

The SMMT Electrified conference was an opportunity for the UK market to come together and discuss the issues. Speakers and attendees came from across the industry, with carmakers, suppliers and EV specialists present.

Key points raised at the conference this year included:

  • A need for the industry and government to work together.
  • More investment in UK charging infrastructure.
  • Flexibility on the zero-emission vehicle (ZEV) mandate targets.
  • Changes to the Expensive Car Supplement (ECS).
  • Quicker decision making for government regulations.

A lot has changed since the last conference in 2023. Two years ago, there were calls for clarity around the 2030 petrol and diesel new-car ban. This year highlighted the need for more clarification. Between the two conferences, the ban changed to 2035, then back to 2030. The ZEV mandate was enacted with its first full year in 2024 proving a new obstacle.

So, the industry needs more support to reach its targets and incentivise buyers to consider an EV. The SMMT is calling for flexibility in the ZEV mandate, alongside a cut in VAT on public charging costs. The price of new EVs was also highlighted as a concern. This was all documented in a new report launched at SMMT Electrified: In it together, why every sector wins with EV volume.

Enticing buyers

In 2030, a ban on the sale of new petrol and diesel vehicles will come into effect. At that time, the ZEV mandate required 80% of carmaker fleets must be either a BEV or hydrogen fuel-cell vehicle.

Despite the UK emerging as the leading BEV market in Europe at the end of 2024, registrations have slowed. While the ZEV mandate target for fleets last year was set at 22%, the entire market managed just 19.6%. The ZEV target increases to 28% this year, so many brands may struggle.

An SMMT-commissioned survey revealed 23.1% of would-be new-car buyers plan to get an EV between now and 2028. While encouraging, this is below the ZEV target for this year alone. Additionally, of these drivers, just 11.5% would be switching to an EV from another powertrain. Therefore, the market is heavily reliant on those who have already made the switch and may be looking to upgrade.

‘Our modelling shows halving VAT on new EV purchases would encourage sceptics to make the switch, growing demand by a further 15% on top of current outlooks and resulting in two million new EVs on the road by 2028. That would also result in a six megatonne CO2 saving, equivalent to a sixth of the UK’s annual aviation emissions,’ commented SMMT chief executive Mike Hawes.

Call for support at SMMT Electrified

With the right government support, the SMMT study revealed that two-in-five electric sceptics might change their minds. This includes purchase incentives, a greater charge point rollout, and a reduction in public charging costs through a VAT cut.

‘Everyone wanting to achieve net zero in the UK must stick together,’ Hawes stated at the event. ‘No industry, sector or stakeholder, including government, can deliver this alone. The UK automotive industry has done and is continuing to play its part, collectively committing over £20 billion (€23.8 billion) to develop and bring to the UK world-leading EV technologies.’

Hawes highlighted that the UK needs to pick up the pace of its EV transition. He cited a report by the Committee on Climate Change, which stated that such a move is fundamental to the prosperity of the country. Hawes suggested that some critical assumptions were made to realise this vision.

‘First of all, it is expected in the report that electricity will become cheaper and that EVs will reach price parity with internal-combustion engine (ICE) cars in the next couple of years. I hope that is true, but frankly, I think we remain a very long way from both. So, we do need to pick up the pace, despite how strong it has been over the past couple of years,’ he commented.

The impact of charging

One big issue impacting purchase decisions is charging infrastructure. ‘Charging, and the perception of charging, remains one of the biggest barriers to purchasing an EV. Consumers will simply not buy EVs if they cannot conveniently charge them,’ commented Hawes.

‘Now, we are seeing infrastructure expand, up by more than a third last year. This is good news. But the increase is just about keeping pace with the EV rollout,’ he added.

According to Hawes, there is still only one public charge point for every 28 plug-in cars on the road in the UK. This ratio has not changed in the last 12 months. Even worse is the regional variation. There is one charger for every 10 EVs in London. Meanwhile, there is one point for every 57 plug-in models in the northeast of England.

However, changes are coming. The UK government is investing more in charging locations. ‘At the last budget, we announced a £200 million investment to continue powering the charge point rollout, unlocking £6 billion of private investment in the process,’ stated Lillian Greenwood, future of roads minister.

‘Currently, there are around 75,000 charging points across the UK, a 32% increase since this time last year. That is in addition to the 680,000 households in England that have access to a domestic charger.

‘But we need to go further. In December, we confirmed that over 100,000 charge points will be installed across local authorities in England, and we have delivered 1,400 new charge sockets outside schools and colleges over the past 12 months,’ she added.

Charging costs

For drivers without a domestic charger, such as those without off-street parking, the charging costs can be higher. These drivers rely on the public charging network and often rapid charging locations.

According to the minister, drivers with access to domestic charging can save up to £790 a year if they mostly charge at home. When questioned about the higher price for drivers who are without access, and the potential of reducing VAT on public charging to help them, the remark was not answered.

Instead, the minister highlighted the ways the government is making it easier for drivers who can park outside their homes, to access domestic charging. ‘One of the things we are doing is making it easier for people who do not have a driveway to be able to charge outside their home. We announced new guidance in December about cross-pavement charging and we are rolling out thousands of new charging points,’ she responded.

The cost situation was highlighted later by Ryan Fisher, head of EV charging infrastructure at BloombergNEF. He stated that UK drivers could save around $1,200 (€1,099) a year in fuel costs for 14,000km (8,700 miles) of driving with a domestic charger and dedicated EV energy tariff. However, if relying on fast charging at an average of $0.97 per kWh, drivers would spend $1,000 more annually.

‘When we think about pricing, what we have seen is that prices have risen for fast charging in many markets. This is more expensive than petrol. In the UK, it is probably about 1.5 times more expensive [per mile],’ he stated.

Expensive cars

Another issue that could impact the UK’s BEV market is the addition of vehicle excise duty (VED) to models from April 2025.

Currently, all-electric vehicles are exempt from this tax. However, from 1 April, vehicles registered after 31 March 2017 will have to pay an annual fee of £195. For brand new cars, the first-year fee will be £10, increasing in the second year. Models purchased before this date will have a VED fee of £20 per annum.

However, the biggest problem facing the market is the Expensive Car Supplement. This is an additional tax added to a vehicle between its second and sixth year of registration. Currently, the tax is levied on models that cost £40,000 or more.

Many BEVs would be eligible for ECS. The technology is still expensive compared to ICE models. This leaves consumers looking for a larger family vehicle with few options. They could pay thousands more in tax, consider the limited range of cheaper models or enter the used-car market.

The ECS was established in 2017, and despite changes in the economic markets, has never been revised. Hawes suggested at the SMMT Electrified Conference that this threshold should be increased to £60,000.

Speaking in one of the panel sessions, Paul Philpott, president and CEO of Kia UK, commented on the situation. ‘We did some calculations, and last year, around 25% of non-electric vehicles were above the £40,000 threshold and attracted the £2,500 additional taxation over the ECS period. However, 70% of BEVs last year were priced above £40,000.

‘So, we are about to tax most of the EV market more VED for buyers than they would pay on an ICE car. How that supports our road to zero I am not sure,’ he added.

Incentivising the market

A point hammered home at the event was that the UK EV market needs incentives to continue to grow. These are not just monetary, but regulatory as well.

‘There are two issues, incentives and disincentives. The fact remains that consumers, especially private consumers, are not buying EVs in sufficient numbers to meet our ambitious and collective targets. Our industry has had to discount heavily to encourage demand,’ commented Hawes.

One issue is the ZEV mandate, which the SMMT and automotive industry wants to be more flexible. ‘We have to accept that the ZEV mandate has turned out to be a road paved with good intentions but has not yet taken us to where we need to be.

‘Back when it was drawn up, the roadmap was perhaps clearer. Energy prices were lower. Raw material production costs were improving. Money was cheaper. There was higher organic demand for these types of vehicles,’ Hawes added.

Yet with higher energy costs and geopolitical uncertainties, the pathway has changed. While the EU has recently announced plans to amend CO2 regulations to cover five years, the UK government’s trajectory to ZEVs is more rigid.

‘Getting to the 28% threshold is a challenge right now. It increases to 33% next year, and then the big challenge comes. If we have not got momentum going into 2027, how do we get from 33% to 80% in four years? Momentum must come from government incentivisation for retail customers to make the switch now,’ added Philpott.

Speed of decisions

Even if there was a change to a more flexible system, this would need to be communicated and enacted quickly. Without this, carmakers could still struggle.

‘I think the thing that is surprising was in the EU they started a review at the beginning of January, and they published the output of that a couple of weeks ago. So, they have turned something around, quickly, and I think we need to ask the UK government to do the same,’ commented Lisa Brankin, managing director at Ford of Britain.

The SMMT’s report calls for an extension and expansion of regulatory flexibilities that support continued investment in the ZEV rollout. This also supports compliance with rising mandate targets.

Acknowledgement of various technologies, including hybrids and plug-in hybrids, have to play in decarbonising road transport was also called for. This is either as a stepping stone or toward the full delivery of zero-tailpipe emissions by 2035.

Overall, the UK’s EV market could continue to lead Europe. But with challenges ahead, the message is clear. The industry needs support and must work together with the government and the private sector. Revisions to costs, the charging network, taxation and more will help the EV market to thrive. But these changes are needed sooner rather than later.  

The Automotive Update: Northvolt files for bankruptcy

Northvolt files for bankruptcy, Nissan chief steps down, and Ford invests in loss-making German subsidiary. Autovista24 journalist Tom Hooker explores the week’s biggest automotive news stories.

Tesla shares fall by almost half, and Nissan completes autonomous driving research project. In supplier news, ZF receives Germany-wide Level 4 test permit from the KBA for autonomous driving, plus Bridgestone and Michelin test puncture-free tyres. Listen to these stories in the latest edition of The Automotive Update from Autovista24.

Subscribe to the Autovista24 podcast and listen to previous episodes on Spotify, Apple and Amazon Music.

Northvolt files for bankruptcy

Electric vehicle (EV) battery manufacturer Northvolt has filed for bankruptcy in Sweden. In a statement, the startup cited rising capital costs, geopolitical instability, supply chain disruptions, market demand shifts and production struggles.

It marks the end of a downward spiral for the company. Northvolt was once seen as Europe’s best hope for EV battery production in an industry dominated by China. Since 2016, the business received backing from Volkswagen, Goldman Sachs and BlackRock, attracting more than $15 billion (€13.8 billion) of corporate and government investment, according to the Financial Times. 

‘This is an incredibly difficult day for everyone at Northvolt,’ commented Tom Johnstone, Interim chairman of Northvolt’s board of directors. ‘We set out to build something groundbreaking, to drive real change in the battery, EVs and wider European industry and accelerate the transition to a green and sustainable future.’ 

Nissan chief steps down

Nissan CEO Makoto Uchida has stepped down from his position as part of a significant restructuring within the company’s senior leadership team. Ivan Espinosa, currently the chief planning officer, has been appointed as his successor. The changes are focused on achieving Nissan’s short and mid-term objectives, while positioning it for long-term growth, as outlined in a statement.

The news comes following the collapse of merger talks with Honda. Uchida stated in a press conference that the company’s board requested he step down. This was following internal and external questions over his role Nissan’s poor performance, as reported by the Financial Times.

Uchida had previously advocated for a deal with Honda, and was against a takeover by Taiwanese company Foxconn. However, several board members, and people close to the discussion, had increased pressure on the former CEO to step down in recent weeks.

Espinosa will be expected to swiftly execute a turnaround plan, including 9,000 job cuts and slashing 20% of production capacity.

Automotive production news

Ford is restructuring its debt-laden German arm, Ford-Werke, with €4.4 billion of new capital.

This move addresses a €5.8 billion debt obtained amid Europe’s challenging automotive market, stoked by high costs, weak demand, and Asian competition.

Vice chair of Ford Motor Company, John Lawler, said the carmaker will not pull out of its European business. He called on Brussels and Germany to do more to accelerate the transition to EVs. Additionally, Lawler highlighted a need lower costs to compete against Chinese rivals.

Furthermore, the company stated it would end a commitment which has been in place since 2006 to bear any losses its Ford-Werke subsidiary made, the Financial Times reported.

Porsche has announced that it will cut 4,000 jobs, according to The Times. This move to reduce its workforce by 10% is in response to declining sales.

The brand has promised investors a ‘comprehensive recalibration’ of the business after profits slumped. Porsche bosses also raised concerns about US trade tensions, and warned that this year’s earnings will be impacted by growing domestic competition in China.

Volkswagen (VW) Group software subsidiary Cariad wants to cut 1,600 jobs by the end of the year. This amounts to just over 27% of its total workforce. Automobilwoche reported that the cuts will be carried out through severance payments and early retirement programmes.

VW announced that its upcoming ID. Every1 will be built in Portugal. The hatchback, unveiled as the ID.1 prototype, is scheduled to begin production in 2027, according to DPA International. VW brand boss Thomas Schäfer highlighted that the plant in Portugal is one of the most cost-efficient in the company.

Tesla turbulence

Tesla CEO Elon Musk has stated he wants to double US production within two years. Posting on his online platform X, Musk sees this move as ‘support of the policies of President Donald Trump and confidence in the future of the United States.’

The company’s stock dropped by nearly half in three months, as reported by Reuters. Tesla’s market cap fell 45% from its $1.5 trillion peak on December 17, reversing gains linked to CEO Elon Musk’s support of Trump’s presidential campaign.

Tesla’s current valuation largely relies on projected robotaxi and robot development. However, these products are not yet in production. Reuters reports that Tesla’s EV business generates nearly all revenue, but represents less than a quarter of its stock market value. The company’s total worth exceeds the combined value of the next nine most valuable carmakers.

Autonomous driving developments

Nissan has completed what it claims to be the UK’s most rigorous autonomous driving research project, evolvAD. More than 16,000 autonomous miles were covered across the country’s roads, with no accidents reported.

The conclusion of evolvAD, which was partly funded by the UK government, marks the start of the next phase of autonomous driving deployment. This will assess the readiness of cities and regions across the UK for the future introduction of autonomous driving systems and services.

Meanwhile, ZF has received a Germany-wide Level 4 test permit from the KBA, to test autonomous driving. The permit covers urban and regional public transport areas. Roads with a maximum speed limit of more than 100kphare excluded from the permit, which is valid until the end of 2026 and can be extended until the end of 2028.

In an attempt to smooth the path for self-driving vehicles, Bridgestone and Michelin are testing advances in puncture-free tyres.

These versions are air-free, and can support a one-tonne vehicle driving at 60kph. The invention is being trialled on shuttle buses and tourist vehicles. The tyres could mean lower maintenance costs and reduced liability risk from autonomous driving accidents caused by punctures.

Painful petrol result clouds improved electrified registrations in Italy

A large fall in the number of petrol and diesel registrations caused the Italian new-car market to decline again in February. This was despite a strong increase in electrified deliveries. Autovista24 journalist Tom Hooker assesses the figures.

New-car volumes in Italy fell by 6.3% last month, with 137,983 registrations. This equated to a loss of 9,219 units year on year, according to the latest data from industry body ANFIA. Yet, February represented the market’s highest registration total in the country since June 2024.

rn

‘The overall drop in volumes of 6.3% compared to February 2024 is a heavy reduction that takes us even further away from the sales of 2019. It also shows that the effects of the crisis triggered by COVID-19 and ongoing conflicts have not yet been completely overcome,’ commented Marco Pasquetti, Autovista Group’s head of valuations for Italy.

February marked the seventh consecutive month of new-car delivery declines. This follows a similar trend seen in some of the other big five European markets. In February, France suffered its ninth registration drop in 10 months. Meanwhile, volumes in the UK and Germany fell for their fifth month in succession.

In the year to date, deliveries in Italy decreased by 6.1%, with 271,694 units. This represented a gap of 17,527 registrations compared to the first two months of 2024.

Petrol registrations plummet

Petrol volumes slumped 20.9% in February, with 36,374 deliveries. This equated to a loss of 9,591 units against 12 months prior, the biggest year-on-year unit difference of any powertrain in February. Excluding petrol from the market’s overall figure, it would have grown by 0.4%.

This was the fuel type’s seventh monthly decline in a row. Despite this, the total was petrol’s highest delivery figure since June. It took a 26.4% market share in February, down by 4.8 percentage points (pp) compared to one year ago.

rn

Across the first two months of 2025, petrol has dropped 19% compared to 2024, recording 72,365 registrations. Removing the powertrain from the overall figure, the market would have fallen by just 0.3%. It captured 26.6% of total deliveries, down from 32.2%.

Diesel’s unstoppable decline

Diesel registrations decreased by 38.9% last month, with 13,705 units. It was the worst performing powertrain in February in terms of percentage decline. The month completed a full year of double-digit drops for the fuel type. Diesel models accounted for 9.9% of the market, down 4.7pp from February 2024.

In the year to date, diesel dropped 38.9%, with 26,550 deliveries. Its share of 9.8% is significantly behind its 15% share recorded in the first two months of last year.

Combining petrol and diesel figures, the internal combustion engine (ICE) market slumped 25.8% in February, recording 50,079 registrations. This represented a loss of 17,386 units year on year. Excluding ICE deliveries from the new-car market, it would have improved by 10.2% in February.

The powertrain grouping made up 36.3% of total volumes, a drop of 9.5pp compared to 12 months ago. ICE registrations decreased by 36.4% in the year to date, with 98,915 units. It represented 36.4% of total deliveries, down from its 45.9% market share during the same period in 2024.

BEV registrations surge

Battery-electric vehicle (BEV) volumes surged 38.2% in February, with 6,922 registrations. The technology was the best-performing powertrain in the month in terms of percentage growth.

Its performance also marked the all-electric technology’s biggest volume month since June 2024, when new incentives for new models were exhausted just nine hours after being implemented. The powertrain took a 5% market share, up 1.6pp year on year.

Thanks to a strong improvement in January, BEV deliveries have risen by 70.9% in the first two months of 2025. The technology reached 13,624 registrations, marking an increase of 5,654 units year on year.

It captured 5% of total volumes, an improvement of 2.2pp compared to the same period in 2024. However, this was still 4.8pp behind the next closest powertrain.

PHEVs Italian future

Deliveries of plug-in hybrids (PHEVs) grew by 33.3% in February, thanks to 6,131 units. This represented the technology’s biggest monthly percentage increase since September 2023 and its highest delivery total since June 2023.

PHEVs accounted for 4.4% of the new-car market, an improvement compared to its 3.1% share from 12 months ago. In the year to date, registrations for the powertrain rose by 27.6%, with 11,008 units. This gave it a 4.1% share, up 1.1pp year on year. Yet, PHEVs remain the least popular automotive technology in Italy.

The future of the powertrain in the EU has been in discussion over the last couple of months. These conversations have been linked to the European Commission’s strategic dialog and action plan for the automotive industry.

‘To sustain competitiveness and preserve jobs, the EU must embrace a diversified portfolio of sustainable technologies, including, by 2035 and beyond, both plug-in and range-extender hybrid vehicles powered by non-fossil fuels,’ stated ANFIA president Roberto Vavassori.

‘Moreover, if the Commission’s real goal remains decarbonisation, we see no alternative to a progressive plan to renew the current 12.5-year-old, high-emission car fleet. Without this plan, the sector is doomed to disappear under the blows of Chinese competition and transatlantic politics,’ said Vavassori.

EV registrations boom?

Adding together BEV and PHEV figures, electric vehicle (EV) deliveries surged 35.9% last month, thanks to 13,053 units. Plug-ins made up 9.5% of the overall market, up from 6.5% in February 2024.

The powertrain group grew 48.4% across the first two months of 2025, recording 24,632 registrations. This was a gain of 8,035 units year on year. It took a 9.1% share, an improvement of 3.4pp compared to the same period in 2024. Yet, there were market factors that pronounced this strong plug-in increase.

‘Although the market share is still low compared to other main European markets, PHEV and BEV figures look very promising if we make a year-on-year comparison, as we see an increase of more than 30%,’ outlined Pasquetti.

‘However, it is important to remember that throughout the first half of 2024 we were facing an anomaly in Italy, since the government had announced an incentive scheme in December 2023 for the purchase of vehicles with these technologies, which was only implemented in June 2024.

‘This drastically reduced sales, which were significantly lower in the first five months of 2024 compared to the same period of 2023. Until May, BEVs were down 18.7%, while PHEVs dropped 25.7%. Therefore, interest in these powertrains is growing, but considering last year’s context, I think it is still too early to consider it a boom,’ he highlighted.

Hybrids comfortable lead

Volumes of hybrids, made up of both full and mild hybrids, saw deliveries grow by 10.2% in February, with 61,196 units. The technology represented 44.4% of the market last month, a significant improvement compared to its 37.7% share from 12 months previously.

Hybrids are comfortably the best-selling powertrain in Italy, ahead of petrol. This gap between the two powertrains has grown from 6.5pp in February 2024, to 18pp last month. It was also ahead of the ICE market by 8.1pp in February. One year ago, this same gap was reversed, with petrol and diesel models leading hybrids.

Across the first two months of 2024, hybrids have improved by 10.4%, reaching 120,853 registrations. This equated to an increase of 11,374 units year on year. The powertrain took a 44.5% market share, up 6.6pp compared to the same period last year.

Electrified registrations improve

Combining hybrid figures with the EV market, electrified models saw deliveries rise 14% last month, with 74,249 units. The powertrain grouping captured 53.8% of overall registrations, an increase of 9.5% compared to February 2024.

The market sat comfortably ahead of ICE by 17.5pp. One year prior, petrol and diesel led electrified models by 1.5pp.

‘Registration figures show how sterile the ongoing dispute between those who only support electric and those who only support ICE technology is. Almost two-thirds of monthly registrations related to cars with various levels of electrification, from mild-hybrid and full-hybrid to BEVs and PHEVs,’ explained Vavassori.

‘Meanwhile, ICE cars without any electrification account for just over a third, a sign that the process of understanding and acceptance of increasingly electrified vehicles is also taking place in our country. This despite the fact that there remains a considerable gap in terms of volumes, three times below the European average,’ he continued.

This shift in consumer acceptance follows trends seen in Germany in the UK, where all electrified powertrains have grown, while the ICE market has declined. In the year to date, electrified models grew by 15.4% in Italy, recording 145,485 deliveries. This gave it a 53.6% share, up 10pp year on year.

The ‘others’ category, including liquid-petroleum gas and natural gas vehicles, dropped 6.4% last month, with 13,655 registrations. It made up 9.9% of overall volumes, stable from 12 months ago. This was 0.4pp ahead of the EV market.

In the first two months of 2025, the category declined 10.1%, recording 27,294 deliveries. This gave it a 10% market share, down 0.5pp compared to one year ago. Yet, this result placed it 0.2pp ahead of diesel and 0.9pp ahead of plug-ins.

The Automotive Update: European Commission launches new action plan

The European Commission unveils a new automotive action plan, Trump exempts some manufacturers from tariffs, and carmakers launch mass-market models. Autovista24 special content editor Phil Curry explores the week’s biggest news stories.

A new European battery recycling project has big targets, Mercedes-Benz receives an important approval for automated vehicle testing, while an AI start-up expands its presence in Germany. Listen to these stories in the latest edition of The Automotive Update podcast from Autovista24.

Subscribe to the Autovista24 podcast and listen to previous episodes on Spotify, Apple and Amazon Music.

European Commission takes action

The European Commission has launched its new Industrial Action Plan for the EU’s automotive sector. The report covers several areas, designed to improve the region’s automotive market and make it more competitive globally.

The biggest talking point from the new plan is the increased flexibility on compliance for the latest CO₂ emissions targets. If adopted, the amendment will extend the compliance period from one year to three, meaning targets will be assessed in 2025, 2026 and 2027.

This allows carmakers to compensate for exceeding the fleet average limits in one or two of these years by overachieving in the remaining time.

Making ZEVs more attractive

The report also outlines plans to accelerate the uptake of zero-emission vehicles (ZEVs) in corporate fleets, with a separate document on this subject.

The Commission plans to make ZEVs more attractive through fiscal policy. This will be achieved either by reducing corporate benefits on traditional powertrain vehicles, or improving the treatment of zero-emission models. There are also opportunities to boost rental fleet uptake by increasing the number of charging points at airports.

Other areas highlighted by the action plan include legislation to make it easier for automotive third parties, such as repairers and insurance companies, to access vehicle data.

Proposals are also in place to increase the market’s competitiveness and supply-chain resilience, especially when it comes to battery manufacturing. In addition, the Commission also wants to grow the level of skilled workers in the industry.

Some OEMs, such as Stellantis, welcomed the announcement of the plan. ‘The flexibility introduced regarding CO₂ targets, with an extended compliance period, is a meaningful first step in the right direction to preserve the competitiveness of our sector while remaining faithful to the targets and committed to electrification,’ the company said in a statement.

‘It is now important that the proposed targeted amendment be turned into law quickly. This initiative, together with further support to targeted purchase and fiscal incentives, cheaper green energy and investment into charging infrastructure, can be a real accelerator in the ramp up towards electrification,’ added Stellantis.

Trump’s tariff exemption

US President Donald Trump will exempt some carmakers from his plans to enforce tariffs of 25% on all goods coming from Mexico and Canada, which began this week. The tariff exemption is for cars made in North America that comply with the continent’s existing free trade agreement, according to the BBC.

White House press secretary Karoline Leavitt said the president had supported a one-month exemption to the tariffs for the car industry after pleas from Ford, General Motors and Stellantis. The three carmakers have supply chains that stretch across North America. 

The free-trade deal was negotiated by Trump in his first term as president. It outlines rules for how much of a car must be made in each country to qualify as duty-free. Meanwhile, Reuters reported that carmakers would have to increase vehicle prices if they are subjected to the 25% tariffs.  

‘All carmakers will be impacted by these tariffs on Canada and Mexico,’ said John Bozzella, who heads the Alliance for Automotive Innovation, which represents most major manufacturers in the US.

New European models

Volkswagen has revealed the affordable ID. Every1 concept car. The model is planned to retail at €20,000 and is an entry-level battery-electric vehicle that will go into production in 2027.

The production version of the ID. Every1 will be the first model in the entire Volkswagen Group to use a fundamentally new software architecture. This allows the model to be equipped with new functions throughout its entire life cycle.

The carmaker says it plans to unveil nine new models by 2027, including four electric vehicles (EVs), based on the new architecture.

Meanwhile, Audi revealed the new A6 Avant. According to the marque, the model is more dynamic, efficient and digital than ever. It features the company’s mild-hybrid plus system and an aerodynamic drag coefficient of 0.25, giving it improved performance. 

Volvo launched its ES90 model this week. It is the first Volvo car featuring 800-volt technology, enabling a longer range and faster charging. The ES90 can add 300 kilometres of range in just 10 minutes at 350 kW fast charging stations. It has a total driving range of up to 700 kilometres, under the WLTP testing cycle.

MG has teased its upcoming S5 EV, an electric SUV due to arrive in Spring 2025. It is built on the carmaker’s Modular Scalable Platform. According to the company, the model also features a reimagined premium cabin.

European autonomous advancements

Mercedes-Benz has received approval for special marker lights as part of its automated driving tests in Germany. This authorisation is valid nationwide for testing purposes and is initially limited until July 2028.

The turquoise exterior lighting, now permitted by special exemption, indicates to other road users whether the conditionally automated driving function is activated. This also allows traffic authorities and police to recognize the system status more easily. Furthermore, it can be used to determine whether the driver is allowed to engage in other activities if the function is being used.

The exemption, granted by the Stuttgart Regional Council, is initially valid for testing purposes. Insights gained from this initial phase can contribute to shaping the legal framework that will later enable series production.

Meanwhile, AI autonomous technology company Wayve is extending its global footprint in mainland Europe. The business is launching an on-road testing and development hub in Germany. The company is also deploying a new test-vehicle fleet.  

The testing and development hub will focus on improving Advanced Driver Assistance System features. This includes lane change assistance and advancing automated driving capabilities for future production-ready solutions.

Improving battery recycling

BeyondBattRec, a new EU project, has brought 12 partners together to work on innovative battery recycling technologies under the leadership of Aalborg University. The project was launched at the end of 2024 and will run for four years.

The aim is to recover 95% of critical metals from electric vehicle batteries. This includes cobalt, nickel and copper. It also wants to improve the scalability of industrial applications. Furthermore, the participants are also aiming to reuse over 70% of the battery weight, reduce CO₂ emissions by 50% and recover 95% of non-metallic parts.

Can new-car registrations be boosted in Germany?

German new-car registrations dropped in February, despite a strong electric vehicle (EV) performance. But could more private battery-electric vehicle (BEV) registrations boost growth? Tom Hooker, Autovista24 journalist, explores the figures.

A total of 203,434 new cars took to Germany’s roads in February. This was a drop of 6.4% year on year, equating to a loss of 13,954 units. It was also a decline of 2% compared to the previous month. This does not follow the trend recorded in recent years where February saw higher volumes than January.

According to the KBA, commercial registrations fell by 6.5% compared to one year ago. However, the sector still accounted for the majority of new-car volumes, with a 67.5% market share. Private deliveries dropped by 6.2% and represented 32.4% of the market.

‘Overall, the first two months were rather difficult for car manufacturers,’ said Robert Madas, Autovista Group’s regional head of valuations.

BEV momentum in Germany

Battery-electric vehicle (BEV) registrations soared by 30.8% last month, reaching 35,949 units. It marks the technology’s highest monthly total since June 2024. Excluding all-electric vehicles from the overall total, the market would have suffered a stronger decline of 11.8%.

Following January, BEVs recorded two consecutive months of improvement for the first time since July 2023 and August 2023. However, these two results are slightly pronounced.

‘At first glance, the electric-car sales figures look good. However, the previous year’s figures were extremely low,’ outlined ZDK vice president Thomas Peckruhn. In particular, February 2024 saw a poor performance for the powertrain. It started to struggle after the sudden removal of incentives in December 2023.

‘In addition, many new registrations of BEVs were pushed into the new year to reduce CO2 fleet values,’ highlighted Peckruhn. This is because the EU’s CO2 fleet limit targets are becoming stricter this year. Comparing last month’s result to February 2023, BEV registrations grew 10.7%.

The technology took a 17.7% share last month, up 5.1 percentage points (pp) year on year. It was the third most popular powertrain and sat comfortably ahead of diesel. This was the highest all-electric share since December 2023, a month which was skewed by incentive changes.

All-electric vehicle deliveries grew by 41% in the year to date to 70,447 units. The technology made up 17.1% of the market, up from 11.6% in the first two months of 2024.

Private growth needed

However, the ZDK pointed out that this BEV improvement is too one-sided. Demand for the technology appears to be coming primarily from the corporate sector.

‘The renewed strong growth in BEVs in February cannot hide the fact that there is no noticeable demand for electric cars on the part of private customers. An improvement in the framework conditions by politicians is urgently needed to bring the ramp-up of e-mobility to the masses,’ the industry association explained.

‘The fact is that new private BEV registrations are still weak, and all-electric vehicle growth is primarily driven by company car trading,’ added Peckruhn.

Germany’s election impact

National elections also took place in Germany last month. The CDU/CSU came out on top. But, without an overall majority, the bloc needs to create a coalition government with at least one other party. CDU leader Fredrich Merz said he would like to have a government in place by 20 April, according to DW.

Peckruhn stressed that whatever this combination of parties, additional support for BEVs needs to be implemented.

‘The widespread loss of private demand in the BEV trade should show the future coalition partners in Berlin that political support for the faltering ramp-up of electric mobility cannot be delayed. One thing is clear: If you want to really get the ramp-up of electromobility going, it will not work without supportive measures from politicians,’ stated Peckruhn.

PHEVs push forward

Plug-in hybrids (PHEVs) recorded 19,534 deliveries in February. This equated to a year-on-year increase of 34%. It was the best-performing powertrain in terms of percentage growth. It was also the biggest year-on-year percentage gain for the technology since January 2024.

PHEVs accounted for 9.6% of all registrations last month, an improvement of 2.9pp year on year. This was its biggest share since December 2022, a month impacted by incentives.

Across the first two months of 2025, PHEV registrations grew by 28.6% to 37,246 deliveries. The powertrain captured 28.6% of the market, up from 24.8%.

EV registrations hold up market

Combining BEV and PHEV figures, the EV market jumped 31.9% in February. A total of 55,483 electric models were registered in the month, a growth of 13,429 units compared to one year prior. Without plug-ins, overall new-car volumes would have slumped by 15.6%. EVs accounted for 27.3% of total deliveries, a rise of 8pp year on year.

In the year to date, plug-in deliveries grew by 36.5%, with 107,693 units. This equated to a gain of 28,771 registrations. The powertrain grouping made up 26.2% of the market, up from its 18.3% share recorded one year ago.

‘New car registrations in February 2025 show a mixed picture. The sales of BEVs and PHEVs are recovering. This continues the development from January, when sales of EVs rose sharply,’ explained Madas.

‘However, it must be taken into account that new registrations had fallen massively in the first months of 2024 after the expiry of the state subsidy,’ he noted.

Europe’s action plan

EV figures in Germany may be impacted by the European Commission’s industrial action plan for the bloc’s automotive sector.

The report proposes a focused amendment to the CO2 emission regulations. If adopted, carmakers could meet compliance targets by averaging their performance over a three-year period, from 2025 to 2027.

This would allow manufacturers to offset any shortfalls in one or two years with excess performances in the others. In principle, it eases the pressure on carmakers to increase the EV share of their overall fleet this year.

So, with targets eased, brands may alter their EV strategies. As the EU’s biggest new-car market, any changes made will be easily visible in Germany’s figures.

Hybrid registrations lead Germany

Hybrid volumes increased by 6.1% last month, reaching 58,153 registrations. February’s performance was the powertrain’s highest volume total in 12 months. It meant technology maintained its perfect growth streak since September 2024. However, it did end four consecutive months of double-digit increases.

Hybrids took a 28.6% market share in February, up 3.4pp year on year. This was enough for the technology to lead the German new-car market for only the second time ever. Yet, its share was significantly lower than its 31.4% hold in December 2024, when it passed petrol for the first time.

In the year to date, hybrid deliveries rose by 9.8% with 117,405 units. It captured 28.6% of the market, just 0.4pp behind petrol. However, this result was up 3.8pp from its share recorded during the first two months of 2024.

Adding hybrid figures to the EV total, the electrified market grew 17.3% last month, thanks to 113,636 registrations. This gave it a 55.9% share, up from 44.5% in February 2024.

Between January and February, the powertrain grouping saw volumes improve by 21.1%, with 225,098 units. Electrified vehicles made up 54.8% of deliveries, an increase of 11.7pp year on year.

Petrol plummets

Registrations of new petrol vehicles plummeted 26.2% in February, with 56,911 units. It was the fuel type’s worst volume performance so far this decade, with the next worst recorded in April 2020. Furthermore, it marked petrol’s biggest year-on-year percentage drop since April 2022.

Excluding the powertrain from the overall total, the new-car market would have grown by 4.4%. It accounted for 28% of overall registrations last month, down by 7.5pp compared to February 2024. This represents petrol’s lowest share since August 2023. In addition, it means the fuel type has lost share in every month since August 2024.

Across the first two months of 2025, petrol dropped by 24.9% with 119,269 registrations. This equates to a loss of 39,561 deliveries. It still leads the market in the year to date with a 29% share. However, this is significantly behind its 36.9% hold in the same period of 2024.

Diesel slumps in Germany

Diesel declined by 23.8% last month, with 32,116 registrations. It was the biggest percentage drop for the fuel type since August 2024. The powertrain took a 15.8% market share, down 3.6pp compared to February 2024.

In the year to date, diesel slumped 21.7%, with 65,072 deliveries. It accounted for 15.8% of new-car volumes in this period, down from 19.3%.

Combining petrol and diesel figures, the ICE market fell 25.3% in February. The powertrain grouping delivered 89,027 units last month, giving it a share of 43.8%. This was down from its 54.9% hold in February 2024. It also meant that ICE vehicles trailed the electrified market by 12.1pp.

Across the first two months of 2024, ICE volumes plummeted 23.8% to 184,341 units. This gave it a 44.8% share, down from 56.1%. The electrified market was 10pp ahead of the ICE market in this period.

The ‘others’ category, including hydrogen fuel-cell electric vehicles, natural gas and liquified petroleum gas vehicles, E85/ethanol and other fuels, dropped by 39.9% last month. The powertrain grouping recorded 771 registrations and captured just 0.4% of overall registrations. This was down 0.2pp on February 2024.

In the year to date, the category slumped 49% with 1,635 units. It represented 0.4% of the new-car market, down from 0.7%.