Segment: Professional Services

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.

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.  

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%.

New regulations start to impact new-car market in France

French registrations declined again in February. But how will the market adjust to new regulations that could disrupt the majority of powertrains? Autovista24 special content editor Phil Curry examines the market.

The French new-car market continued its poor start to the year in February. Changes to regulations could cause more problems in the coming months.

Registrations of new passenger cars dropped by 0.7% last month, according to data from the PFA. A total of 141,568 models were delivered to customers, a difference of 1,030 units year-on-year, according to Autovista24 calculations.

rn

This is the ninth time in 10 months that the French market has endured a loss. Only December 2024’s 1.5% improvement stands out in that period. There may be more hardship to come, with battery-electric vehicle (BEV) incentives cut, and the CO2 emission penalty rising.

Market regulations

February 2024 saw the beginning of the country’s social leasing offer, which helped boost figures in that month. This means February 2025 was up against a tougher reporting period.

There was also one less working day in the month compared to the previous year. Yet regulation changes also played their part and could continue to disrupt the market.

After 14 February, registered BEVs were not eligible for the previous incentives if they were ordered before 2 December 2024. The maximum amount offered against the purchase of a new BEV dropped from €7,000 to €4,000 for households whose tax income does not exceed €16,300.

For households with a taxable income between €16,300 and €26,200, the aid is now €3,000. Above this threshold, the subsidy was reduced to €2,000. Originally, households with an income above €15,400 were eligible for €4,000 of aid.

These changes may put buyers off the purchase of a new BEV. Some models will appear expensive compared to their petrol or diesel counterparts.

Additionally, from 1 March, the CO2 emission threshold for triggering a €50 malus tax will tighten to 113g/km. A further €25 will be added for each 1g/km up to €150 or 117g/km. A further €20 for each gramme per kilometre will be added up to 124g/km. After this, the increments increase to a maximum €70,000 penalty for vehicles with CO2 emissions of more than 192g/km.

This tax is only applicable on the date of registration but could put buyers off more polluting vehicles. This may impact internal-combustion engine (ICE) registrations. With lower incentives and higher taxes, consumers and businesses may, therefore, be funnelled into the hybrid market.

Market reacts to regulations

‘We clearly saw two sequences over the month, a wave of electric car registrations up until 14 February, which then fell back the following day,’ commented Marie-Laure Nivot, Head of automotive market analysis at AAA Data. 

‘Demand, therefore, remains largely guided by purchase aids. The changes in bonuses and penalties make the market difficult to understand, because these early registrations risk weighing on the dynamics of March. Meanwhile, the share of electric engines must continue to increase in order to achieve the objectives of reducing CO2 emissions,’ stated Nivot.

Alongside the subsidy reduction and CO2 penalty increase, there is also a tax based on the weight of the vehicle. This may impact plug-in hybrid (PHEV) registrations as these models tend to be heavier. Therefore, drivers could end up paying higher penalties at the time of registration. The increase may drive buyers towards lighter hybrid models. However, BEVs are exempt until 2026.

BEV registrations down again

The French BEV market dropped 2.1% in February. The technology recorded 25,335 registrations, a difference of 538 units year-on-year. This meant the powertrain’s market share fell slightly. It represented 17.9% of total deliveries last month, down from an 18.1% hold in February 2024.

rn

With the social leasing programme beginning in February 2024, the all-electric technology was compared with a strong period this year. Together with the changes in regulations, it was always likely to suffer.

However, there was a spike in registrations of the powertrain up until the incentive changes on 14 February. According to AAA Data, registrations were up by 59%, with a market share of 25% until this time.

AAA Data reports that the electrification of the fleet market is progressing significantly. The sector’s demand for BEVs jumped by 41%, with a market share of 20%. Yet the private sector, which accounts for 51% of deliveries, was down by 29% year on year. This is likely due to the launch of social leasing, which only applied to individuals in February 2024.

Across the first two months of 2025, BEV registrations were down by 1.4%, a difference of 632 units. A total of 45,258 registrations left the technology with a market share of 17.7%, up by 0.4 percentage points (pp).

Hybrids hold up the market

The French market has been dependent on hybrids preventing further overall declines for several months. There have only been occasional increases in BEV or PHEV powertrains across the last 12 months. Yet full hybrid (HEV) and mild-hybrid (MHEV) figures have seen consistent improvements.

This trend continued into February 2025. HEVs and MHEVs were the only major powertrains to record growth. With changes to regulations, this is a trend that is likely to continue.

MHEVs, were the best-performing technology in terms of growth last month. Their tally of 31,573 deliveries was an 81.3% surge year on year, a difference of 14,163 units.

This meant their market share jumped 10.1pp, to 22.3%, making it the second-most popular powertrain in February. MHEVs sat just 2.5pp behind petrol, compared to a 21.5pp gap from 12 months ago.

Meanwhile, HEV deliveries were up by 28.4% in February, according to Autovista24 calculations. A total of 30,571 units were registered, 6,754 more than the same period in 2024. This left the powertrain with a market share of 21.6%, up 4.9pp.

Across the first two months of 2025, HEVs saw registrations rise 28.5%, with 57,671 deliveries, an improvement of 12,791 units. Their market share hit 22.5%, up from the 16.9% recorded in the same period of 2024.

MHEVs were up 85.4%, with 55,920 registrations. This is an increase of 25,763 units and a 10.4pp climb in market share to 21.8%.

PHEVs plummet

PHEVs struggled again in February and were the month’s worst-performing powertrain. The technology was down 45% in the month, with just 6,451 registrations. This was a drop of 5,281 units compared to February 2024, based on Autovista24 calculations.

‘With no more benefits for companies to purchase a PHEV, numbers have struggled this year,’ commented Ludovic Percier, senior residual value analyst at Autovista Group.

‘The bonus for PHEVs, including a tax deduction for businesses, is no longer in place. In addition, new models with increased ranges are coming to the market, with higher prices. Companies are instead looking at the hybrid market, which is pushing registrations in that sector upwards.

‘In addition, with more HEVs on offer from carmakers, this is increasing the choice for both individual and company buyers around this powertrain,’ Percier concluded.

The policy changes have clearly had an impact on the PHEV market. The powertrain’s market share in February dropped to 4.6%, the lowest of the major technologies. In the same period last year, PHEVs held an 8.2% share.

Combining the figures for January and February, PHEVs had clearly faltered. With 11,303 deliveries, the market was down 49.3%, equating to 10,978 fewer vehicles. From an 8.4% market share in the first two months of 2024, the powertrain held just 4.4% of the market.

Plug-in problems

The PHEV struggle has impacted registrations of electric vehicles (EVs) in France. Despite the small decline in BEV deliveries in February, the plug-in market was down 15.5%. Its 22.5% market share was down by 3.9pp compared to a year ago.

In the year to date, EVs were down 17% in France, with a market share of 22.1%, down from 25.7%.

Adding HEVs into the figures, the electrified sector was up by just 1.5% in February. This was despite the strong performance of the hybrid powertrain in the month. This growth means that from an EV deficit of 5,819 units, the electrified market improved by 935 deliveries. The sector took a 44% market share, up by 0.9pp year on year.

In the first two months of 2025, electrified registrations were up 1%, with growth of 1,181 units. This reflected a 44.6% market share, improving by 1.9pp.

ICE slides further

Petrol registrations in France have been in decline for a full year. The last improvement in the powertrain’s figures was February 2024. With carmakers increasing their MHEV and HEV offerings, rather than focusing on full petrol models, this slide will continue.

Last month, there were 35,110 petrol registrations, a drop of 27% year on year. This decline means the fuel type fell from a 33.7% share in February 2024, to 24.8% last month. Across the first two months of the year, petrol was down by 27.5% with 65,084 deliveries. The fuel type’s market share slid by 8.5pp, to 25.4%.

As carmakers continue to reduce the number of diesel models in their line-ups, the technology continues to struggle. However, diesel marginally outperformed PHEV registrations in February. A total of 6,707 units were delivered to customers, a drop of 34.4%. Diesel ended February with a market share of 4.7%, down from 7.2% recorded 12 months prior.

In the year to date, diesel deliveries were down 41.2% to 11,663 registrations. The fuel type’s market share of 4.6% was down from 7.5% recorded in the same period of 2024.

Combined, ICE registrations were down 28.3% in the month, with a market share of just 29.5%. This was significantly lower than its 40.9% share from one year ago. Across January and February, the technology declined 30%, taking a 30% market share.

What were the most popular electric vehicles in 2024?

Battery-electric vehicles (BEVs) and plug-in hybrids (PHEVs) enjoyed a mostly positive 2024, but which models proved the most popular globally? Autovista24 editor Tom Geggus examines the year’s best-selling electric vehicles (EVs).

BEVs and PHEVs both recorded double-digit registration growth around the world last year. In particular, PHEVs had a successful 2024, with deliveries increasing by 54.4% year on year to 6.5 million units. Meanwhile, BEV registrations increased by 13.6% to 10.8 million units.

Both powertrains enjoyed a strong start to the year, with high growth in January. A major contributing factor was the Chinese market, which saw increased demand for EVs. This was followed by a less successful global market in February, with BEV deliveries falling.

Once again, China was a primary driver of this change. The country’s high demand dropped as Chinese New Year celebrations began on 10 February and lasted for 15 days. In 2023, the celebration began at the end of January and ended in early February, accounting for the comparative difference.

rn

As the year rolled on, both powertrains recovered from this early drop. While BEVs experienced lower single-digit inclines between June and July, PHEV deliveries never dropped below a growth rate of 25.9%.

In December, BEV registrations were up by 15.3% to 1.2 million units. PHEVs once again saw lower volume, but greater growth. In the last month of the year, plug-in hybrid deliveries increased by 48.9% to 743,689 units. But which models were the most popular across 2024?

Model Y claims 2024 victory

The best-selling BEV in 2024 was the Tesla Model Y. This was the all-electric model’s third consecutive win. It was the only BEV to cross the one-million-unit mark last year, recording more than 1.1 million deliveries. The Model Y made up 10.9% of all BEV sales in 2024.

The US carmaker will be looking to keep this momentum in 2025 with a facelifted edition of the Model Y. A launch version of this car is currently available in the US. However, Lars Moravy, vice president of vehicle engineering at Tesla, told Jay Leno more variants will arrive later this year.

The next best-selling BEV, the Tesla Model 3 represented 4.9% of the market, with 529,170 registrations. This meant it took second place in the rankings for the third year in a row. Maintaining such a high position was no doubt thanks to its refresh in 2023.

rn

The BYD Seagull, also known as the Dolphin Mini in some markets, was the third best-selling BEV in 2024. The model launched in 2023 and reached fifth place that year. Recording 472,798 sales in 2024, the Seagull held a 4.4% market share.

BYD recently confirmed it will install a new autonomous driving system across its entire range. Dubbed ‘God’s Eye’, it looks to be capable of autonomous overtaking on roads and parking via smartphone, as outlined by the Financial Times.

Making systems previously featured in premium models more widely available should make affordable BEVs like the Seagull even more appealing.

BYD claims three spots

The BYD Yuan Plus, also known as the Atto 3, finished 2024 in fourth. It reached a volume of 339,656 units, accounting for 3.1% of all BEV sales. The Wuling Mini finished in fifth place, with a market share of 2.4% after reaching 261,182 registrations.

The third BYD in the BEV top 10 was the Dolphin. It recorded 217,018 deliveries, meaning it made up 2% of the all-electric market last year. The Wuling Bingo was only 1,237 registrations behind, reaching a volume of 215,781 and a share of 2%.

The Aion Y was slightly further back in eighth place, making up 1.5% of the market with 161,686 deliveries. The first BEV from a European manufacturer in the top 10 was the Volkswagen (VW) ID.3 in ninth. The all-electric car represented 1.4% of the BEV market last year, with 149,919 registrations recorded.

Taking tenth place was the Changan Lumin. It reached 145,494 deliveries across the world in 2024, accounting for 1.3% of the global BEV market.

Familiar top three

The order of the year’s leading three BEV models was mirrored in December’s results. The Tesla Model Y finished first with an 11% share of the market. Its 134,408 deliveries were up by 5% on December 2023.

The Tesla Model 3 moved up a place from November to take second, with 4.8% of the market. Its deliveries grew by 1% in the month to 58,407 units. This left the BYD Seagull in third with a 4.2% share of the market after recording 51,566 sales, up by 2.1%.

rn

The Wuling Mini finished December in fourth, as its sales jumped by an impressive 50.9% year on year, to 37,755 units. This gave it a 3.1% share of the market. The Wuling Bingo climbed to fifth place as its sales increased by 8.3% to 31,255 units, and it claimed 2.6% of the market.

Now in its third year on sale, the BYD Yuan Plus slipped to sixth as its deliveries dropped by 26.4%. With 27,761 units, it made up 2.3% of all BEV sales in December. The Xiaomi SU7 came seventh with a volume of 25,815 units and a 2.1% share.

The BYD Yuan Up hit 19,265 sales, claiming 1.6% of the market.  The BYD Dolphin saw its sales fall by 38.1% to 18,968 units, with a share of 1.6%. In 10th, the Geely Geome Xingyuan was not far behind with 1.3% and 16,491 registrations.

BYD commands 2024 PHEV table

The BYD Song, also known as the Seal U, commanded the global PHEV market. It recorded 660,214 deliveries, making up 10.2% of all plug-in hybrid sales. In second place, the BYD Qin Plus took a 5.4% market share with 347,757 deliveries.

The BYD Qin L held 3.5% of the market with 229,591 deliveries. Its sibling, the BYD Destroyer 05, followed close behind with a share of 3.4% and a volume of 223,778 units.

rn

The brand claimed its fifth consecutive spot in the table with the BYD Seal 06. It took a share of 3.1% and 200,019 units registered. The Aito M7 finished the year close behind, with 193,342 units and a 3% share. The Li Auto L6 took 3% as well, with 192,257 registrations.

The last model from BYD in the top 10 was the Han, accounting for 2.8% of all PHEV sales with 178,767 deliveries. The Li Auto L7 finished in ninth with 143,698 sales and a 2.2% market share. In 10th, the Aito M9 recorded 139,452 sales and represented 2.1% of PHEV sales.

BYD’s December run

Having dominated the full-year chart, BYD also commanded global PHEV registrations in December. The brand claimed seven of the top 10 positions. The BYD Song took first with a market share of 10.3% as its sales climbed 23.4% year on year to 76,433 units.

rn

Second went to the BYD Qin Plus, recording 31,375 sales, up 6.4% year on year. This allowed it to claim a market share of 4.2%. The BYD Qin L took third, making up 4% of the market with 30,062 global sales. The BYD Seal 06 finished fourth with 27,913 deliveries and a 3.8% share.

The Li Auto L6 finished in fifth with a sales volume of 27,769 units and 3.7% of the market. BYD returned in sixth with the Song L, accounting for 3% of PHEV sales in December with 22,502 deliveries. The BYD Han was close in seventh, with 22,427 registrations and a 3% share of the market.

The eighth-place BYD Destroyer 05 recorded 21,210 deliveries, as it made up 2.9% of PHEV sales in the month. In ninth, the Galaxy Starship 7 held 2.7% of the market with 19,836 sales. The Li Auto L7 finished in tenth with 13,898 deliveries and a 1.9% market share.

What is the UK ZEV mandate?

The zero-emission vehicle (ZEV) mandate maps out how the UK’s new car and van markets will develop in the coming years. So what targets are set and what will happen if they are missed? Autovista24 editor Tom Geggus explains.

The UK has begun its journey towards ZEV-driven automotive markets. The aim is that by 2035, all new vehicles available will not emit any CO2 at the tailpipe. In the run-up to this date, the ZEV mandate sets yearly targets to help guide market developments.

Mandated targets

The mandate sets out that 22% of manufacturers’ new-car sales will need to come from ZEVs this year. This increases to 28% in 2025, and 33% in 2026. By 2027, the targeted percentage will climb to 38%, then 52% in 2028, 66% in 2029 and then 80% in 2030.

rn

Meanwhile, ZEVs will need to make up 10% of manufacturers’ new-van sales this year, and 16% next year. This will grow to 24% in 2026, 34% in 2027 and 46% in 2028. By 2029, 58% of new-van sales will need to be zero-emission, and 70% in 2030.

rn

While the aim is for both cars and vans to reach 100% ZEV sales by 2035, the UK government has yet to set definitive goals for the period between 2031 and 2035.

Payment plans

If a car manufacturer cannot meet these yearly targets, they could end up paying £15,000 per vehicle over the mandated non-ZEV allowance. So, if a carmaker sells 10,000 units in 2024, 7,800 of these could emit CO2. However, if this limit is exceeded by 200 units, the company could end up paying £3,000,000 in total.

However, the rules are slightly different for vans. This is because the zero-emission van market is still in the early stage of development, with little choice for prospective buyers. This is why the penalty figure is only set at £9,000 this year, rising to 18,000 across the rest of the mandate’s timeframe.

However, payment is supposed to be a last resort for vehicle manufacturers. Before reaching this stage, credits, banking, borrowing, trading, conversion and pooling within manufacturing groups are all on the table.

Furthermore, companies selling fewer than 1,000 non-ZEV cars or vans will face no mandatory CO2 emissions target until the end of 2030. When it comes time to set the targets between 2031 and 2035, the UK government will consider whether to continue this rule.

Current progress

The current ZEV share of the UK’s new-vehicle markets gives an indication of how the industry is progressing on average. As the more prominent zero-emission powertrain, battery-electric vehicles (BEVs) are currently leading the way.

Amid the ‘best February for 20 years’, 14,991 all-electric cars took to the UK’s roads last month, accounting for 17.7% of all registrations. This was up 1.2 percentage points on February 2023. In the year to date, BEVs accounted for 15.8% of registrations, up 1.5 percentage points year on year.

Meanwhile, the UK’s new-van market saw 847 new BEVs registered last month. This equated to a market share of 4.7%, down 0.8 percentage points on February 2023. In the year to date, 2,033 units were delivered, holding a market share of 4.9%, holding firm on the first two months of 2023.

How have Euro 7 emission standards changed?

Since they were first proposed at the end of 2022, the Euro 7 emission standards have changed dramatically.

In this latest Autovista24 What is? video, special content editor Phil Curry gives an update on Euro 7 regulations, the tailpipe and non-tailpipe emissions that manufacturers are required to meet, and how the new plans particularly affect battery-electric vehicles (BEVs).

The latest on Euro 7

The Euro standards are a set of regulations that carmakers must adhere to when it comes to vehicle emissions. The Euro 7 regulations were recognised as the strictest yet when plans were revealed in 2022. However, by the end of last year, many of the tighter limits on tailpipe emissions had been removed, with the new requirements continuing the targets of Euro 6.

But Euro 7 is not just an extension of Euro 6. The new regulations introduce requirements for non-tailpipe emissions, and for battery health in BEVs, which will have important benefits for the environment. 

The latest iteration of Euro 7 sees the limits of carbon monoxide, hydrocarbons, nitrogen oxides and particulate matter from petrol and diesel exhausts remain the same as the current Euro 6 legislation. Originally, the plans were for these tailpipe emissions to be cut, a move that caused concern within the automotive industry.

Beyond the tailpipe

The original Euro 7 plans called for non-tailpipe emissions of particulate matter to be regulated, as well as an introduction on minimum battery health targets for BEVs. These plans have been carried over into the new version of the regulations.

This means that for the first time, targets will be set for particulate matter from tyres and brakes. With fewer particulates being emitted from vehicle tailpipes, awareness of the smaller matter coming from tyre wear and brake friction materials has grown in recent years. As cars get heavier, especially BEVs, the European Parliament has decided to introduce limits to prevent excess matter from entering the environment.

Currently, only the limits for brake particulates are known. Highlighting the extra wear placed on these systems by BEVs, the limits are higher for internal-combustion engine models, as well as hybrids and plug-in hybrids. The suggested limits are set to be adopted until the end of 2029. By this time, the European Commission will have completed a report into the effect of smaller particulate matter, which will help determine future limits.

When it comes to battery durability, the new version of Euro 7 has minimum battery health targets after a set number of years or distance. These have been put in place to increase consumer confidence in BEVs, especially within the used-car market. It also means that carmakers need to use quality materials in their battery construction and reduce the need for replacement batteries that would otherwise increase the need for raw materials, which would impact the environment.

Why revise the rules?

The new version of Euro 7 comes following arguments from both the European Parliament and the automotive industry, stating that the original plans would be detrimental, to the market as well as the climate.

Carmakers argued that the financial impact of developing vehicles to meet the original stricter requirements, when they are also trying to develop new zero-emission technologies, may cause them to abandon ICE models early, or risk falling behind in research into cleaner vehicles.

With the zero-emission market still developing, any drop in the number of ICE models available would impact the used-car market. Drivers who do not want to switch to BEVs would hold on to their vehicles for longer. With a high number of Euro 4 and Euro 5 models on European roads, alongside cars adhering to Euro 6 standards, the level of pollution would remain high.

By continuing with Euro 6 tailpipe emissions, development to meet stricter limits is not required, so carmakers can continue to sell the cleaner technology, and drivers who do not want to switch to electric technology still have the option to buy a cleaner vehicle. This will mean that older Euro-standard models will be replaced, reducing pollution levels.

In May 2023, the European Automobile Manufacturers Association (ACEA), stated that if left as originally planned, the Euro 7 emission standards would only have seen a 4% reduction in nitrogen oxide pollution, due to vehicles not being replaced. Extending the Euro 6 targets will instead see an 80% reduction in the tailpipe emissions of nitrogen oxides by 2035, based on 2020 levels.

An interrupted introduction

When originally announced, Euro 7 was expected to be in place by the middle of 2025. However, with the recent changes to the plans, this timeline has been deemed unrealistic.

Instead, the final plans are expected to be approved by the European Parliament by the middle of 2024. After this, the rules are expected to be in place for vehicles undergoing type approval within 30 months, while the legislation will be enforced for all vehicles available for sale after 42 months of the approval.

This means that the Euro 7 limits will begin to be adhered to from the start of 2027. With the EU looking to end the sale of new petrol and diesel cars from 2035, they will likely be the last set of Euro standards to regulate tailpipe emissions.