Electrified vehicles accounted for a bigger market share of the European auto sector than their gasoline counterparts.

Gasoline Registrations Drop

Gasoline registrations fell in the market towards the end of the year by 18.7% in 2025 in the EU, according to data released by the European Automobile Manufacturers' Association (ACEA) on Tuesday. The market share for Gas-powered vehicles fell to 26.6% from 33.3% a year earlier.

On the other hand, Hybrid Electric Vehicles (HEVs) accounted for 34.5%, while Battery Electric Vehicles (BEVs) held 17.4% of the market in 2025, as BEVs sold 1,880,370 units in the EU, with the larger market accounting for 2,585,187 units, up almost 30% YoY.

Tesla Declines, BYD Surges

Tesla Inc.'s (TSLA  ) sales continued to decline. In Europe during December, the EV giant recorded 35,280 sales, down 20.2% YoY from last year's 44,190 units sold. The company's annual sales also declined almost 27%, recording 238,656 units sold in 2025, down from 2024's 326,525 units.

Tesla sales have been on the decline for quite some time, with the company's Cybertruck sales falling 48% in 2025. Tesla also started selling the Cybertruck in the Middle East.

Tesla's rival BYD Co. Ltd. (BYDDY  ) (BYDDF  ) continued its strong performance in Europe, with sales up 229.7% in December as the automaker sold 27,678 units, significantly more than the 8,395 units it sold in 2024. Year-to-date, BYD sold over 187,657 units, which demonstrated a 268.6% surge from last year's 50,912 tally.

BYD is also currently the world's largest EV maker, dethroning Tesla for the first time last year. Chinese automakers also took a record 12.8% market share in the European region.

However, BYD's domestic performance in December fell short in comparison to the overseas market as the automaker sold 420,398 units in December 2025, which represented an 18.34% YoY decline from 2024.