EU EV Sales Surpass ICE Vehicles for First Time in a Month, Marking New Era of Electrification

In December 2025, battery electric vehicles (BEVs) in the European Union captured a market share of 22.6%, slightly surpassing internal combustion engine (ICE) vehicles (22.5%) for the first time—a historic milestone. However, it should be noted that hybrid vehicles (including plug-in hybrids) still dominated the market that month, accounting for 44%, reflecting ongoing consumer concerns about range, pricing, and charging infrastructure. Additionally, some ICE vehicles were reclassified as mild hybrids due to added hybrid systems, which also contributed to the rise in BEV market share figures. Over the full year, BEVs accounted for only 17.4% of sales, with hybrids remaining the primary driver of electrification. Meanwhile, Chinese brands are rising strongly: BYD’s sales in Europe surged by 229.7% year-over-year in December, significantly boosting overall market growth. Although the EU recently relaxed its 2035 ban on new ICE vehicles—revising the emissions target to a 90% reduction compared to 2021 levels—this adjustment has not reversed the trend toward electrification. Instead, it offers automakers greater flexibility during the transition. The industry anticipates that Europe’s EV market will enter a new growth phase in 2026, with competition shifting from sales volume to profitability and in-house technological development.