European Market Monitor: Cars and Vans (November 2025) – International Council on Clean Transportation
Market Spotlight
January 15, 2026 |
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For year-to-date (YTD) 2025, the BEV share of total new registrations was 18%, which represents an increase of 4 percentage points compared with the same period in 2024. Several manufacturing pools had substantial increases in BEV shares in YTD 2025 versus the same period in 2024. Kia recorded a 9 percentage-point increase, followed by Hyundai (+8 percentage points) and the Volkswagen pool (+7 percentage points). By contrast, SAIC stood out with a drop in BEV share from 34% in January–November 2024 to 14% in YTD 2025. Plug-in hybrid electric vehicles (PHEVs) had an average market share of 9% among new registrations in Europe in YTD 2025 (up 2 percentage points over the same period in 2024), led by the Mercedes-Volvo-Polestar-Smart pool (24% share). For full hybrid electric vehicles (HEVs), SAIC (44%), the Renault pool (29%), and the Nissan-BYD pool (24%) recorded the largest shares in YTD 2025. In the mild hybrid electric (MHEV) segment during this same period, the BMW and Mercedes-Volvo-Polestar-Smart pools led in registration shares, at 37% and 36%, respectively.
Figure 2. Average CO2 emissions of manufacturer pools and individual manufacturers compared with estimated 2025-2027 targets, 2025 YTD
For the first time, average monthly manufacturer carbon dioxide (CO2) emissions fell below the target for the 2025–2027 period, dropping to 90 g CO2/km in November. That brings the average CO2emissions among manufacturer pools to 98 g CO2/km in YTD 2025. Including compliance credits, manufacturing pools thus remain 5 g CO2/km from the average target of 92 g CO2/km for the 2025–2027 period. Compared with the previous month, CO2 emissions dropped 8 g CO2/km for the Kia and Tesla pools, 7 g CO2/km for the Nissan-BYD pool, and 6 g CO2/km for SAIC. Nearly all manufacturer pools reduced their target gap by 1 g CO2/km or more, except for Hyundai, whose target gap increased by 1 g CO2/km. In compliance with their 2025–2027 targets were the Nissan-BYD pool at 17 g CO2/km below the target, the BMW pool at 3 g CO2/km below, and the Mercedes-Volvo-Polestar-Smart pool with average emissions equivalent to the target. The Volkswagen pool remained the furthest behind, exceeding its target by 9 g CO2/km, down from 11 g CO2/km in October. Within the pool, Audi and SEAT, which together represent 23% of the pool’s registrations, recorded above-average emissions of 110 g CO2/km and 123 g CO2/km, respectively.
Looking at individual car brands with market shares of 1% or greater, Tesla and BYD had the greatest over-compliance at 91 g CO2/km and 82 g CO2/km, respectively, below their projected brand-level average targets for 2025–2027, followed by Volvo (30 g CO2/km below), Mini (18 g CO2/km below) and Cupra (16 g CO2/km below). Nissan (29 g CO2/km above), SEAT (25 g CO2/km above), Mazda (21 g CO2/km above), and Audi (19 g CO2/km above) had the largest target gaps. Audi and Ford reduced their target gaps by 3 g CO2/km and 2 g CO2/km, respectively, compared with the previous month.
Registrations of PHEVs increased the most in Spain (+115%) and Poland (+98%) in YTD 2025 compared with 2024. Looking at the HEV market, shares of new registrations remained the highest in France (23%) and Poland (22%) in YTD 2025. Shares of MHEVs were highest in Italy (31%) and Poland (27%) in 2025 to date, and MHEVs gained popularity in France, where they made up 22% of new registrations, representing a 39% increase compared with the same period in 2024.
Note: The figure highlights the 10 largest markets by new BEV and PHEV registrations YTD. The “Other” category includes all remaining countries of the European Economic Area (EEA) except for Bulgaria, Liechtenstein, and Malta.
The country has a long history of supporting BEV adoption, including through annual programs offering purchase incentives exclusively for all-electric vehicles almost every year since 2010. In December 2025, the government launched a 2025/2026 incentive program effective retroactively from January 1, 2025. Private individuals can apply for a €4,000 subsidy for new BEVs priced up to €38,500 or new BEVs with more than five seats priced up to €55,000, provided individuals scrap an internal combustion engine vehicle older than 10 years. The program’s 2,200 available spots for private beneficiaries were claimed within hours.
In addition to purchase subsidies, which are currently limited to private buyers and non-profit social organizations, both private and corporate BEV owners benefit from various tax incentives, including full exemption from registration and road taxes as well as from the corporate tax on vehicle expenses.3 In 2025, corporate buyers accounted for 84% of new BEV registrations. The BEV share among corporate car registrations reached 25%, substantially higher than the 17% share observed in the private segment.4 While PHEV owners do not qualify for purchase subsidies, they do benefit from tax incentives, although generally at lower levels than for BEVs. Corporate PHEVs accounted for 87% of total PHEV registrations and represented 17% of corporate car registrations.
This publication is a collaboration between the ICCT, IMT-IDDRI, and ECCO think tank.
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European Market Monitor: Cars and Vans (October 2025)
November 26, 2025
European Market Monitor: Cars and Vans (September 2025)
October 29, 2025
European Market Monitor: Cars and Vans (August 2025)
September 25, 2025
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