London: The European passenger car market experienced a contraction of 1.9% in the first half of the year, reflecting the "challenging global economic environment for auto makers." The market saw a total of 6.81 million new automobile registrations, as reported by the European Automobile Manufacturers' Association (ACEA).

According to Anadolu Agency, major car markets within the European Union, the United Kingdom, and the European Free Trade Association (EFTA) experienced notable declines. France led with a 7.9% decrease, followed by the Netherlands at 5.5%, Germany at 4.7%, and Italy at 3.6%. Conversely, Spain bucked the trend with a significant 13.9% expansion year-on-year in the first six months.

Electric vehicles remained a key driver of market growth. Sales of battery-electric vehicles (BEVs) surged by 24.9% year-on-year, reaching 1.19 million units and constituting 15.6% of total new car sales. Germany reported a 35.1% rise in BEV sales, while Spain and Poland recorded even higher gains of 83.9% and 60.9%, respectively.

Hybrid-electric vehicles (HEVs) have solidified their presence, accounting for 34.8% of the EU market during the six-month period. Registrations of HEVs soared by 16%, reaching 2.38 million units. Plug-in hybrid electric vehicles (PHEVs) also demonstrated strong growth, with sales increasing by 21.2% to 591,572 units.

In contrast, traditional internal combustion engine vehicles experienced sharp declines. Petrol car registrations fell by 21.7%, capturing a market share of 28.4%. Diesel car registrations fared worse, plummeting by 27.5% and reducing their market share to 9.4% in the first half of the year, with double-digit declines observed in most European markets.

In June alone, registrations decreased by 7.3% year-on-year, totaling 1.24 million units across Europe. The ACEA statement highlighted that the BEV market share for the first half of 2025 stood at 15.6%, still far from the desired level in the transition. Hybrid-electric models continue to gain popularity, maintaining their status as the preferred choice among buyers.