EV demand powers Europe car market in May, Chinese rivals expand share

June 23 : Demand for electrified cars continued to underpin growth in Europe's auto market in May, offsetting a sharp decline in petrol and diesel sales and allowing Chinese brands to expand their footprint, data from the European Automobile Manufacturers’ Association (ACEA) showed on Tuesday.

Total car registrations, a proxy for sales, in the European Union, Britain and the European Free Trade Association rose 3.6 per cent to 1,152,523 vehicles in May. For the first five months of the year, registrations were up 4.5 per cent compared with the same period in 2025..

Electrified vehicles dominated the market's momentum. Registrations of battery-electric (BEV), plug-in hybrid (PHEV) and hybrid cars climbed 39.1 per cent, 13.2 per cent and 8.2 per cent, respectively, together accounting for more than two-thirds of all new vehicles registered in May.

"The market continued to benefit from robust consumer demand for a range of electrified technologies across key European markets, sustained by new and revised tax benefits and incentive schemes," the association said in a statement.

In contrast, demand for traditional internal combustion engines weakened sharply, with petrol and diesel sales falling by around 19 per cent each.

LEGACY CARMAKERS CEDE GROUND TO CHINESE RIVALS

Legacy European carmakers lost ground amid the transition. Registrations at Renault , Stellantis and Volkswagen slipped between 1 per cent and 3 per cent, reflecting intensifying competition.

Chinese automakers, by comparison, posted striking gains. Leapmotor's sales surged 465.1 per cent in May, while Chery and BYD jumped 244.1 per cent and 136.6 per cent, respectively. Among other manufacturers, Geely and SAIC recorded increases of 12.6 per cent and 13.9 per cent.

Tesla extended its rebound for a fourth consecutive month, with registrations soaring 107.9 per cent to 28,610 units, marking a strong recovery after more than a year of declines.