(Reuters) – 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% to 1,152,523 vehicles in May. For the first five months of the year, registrations were up 4.5% 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%, 13.2% and 8.2%, 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% each.
LEGACY CARMAKERS CEDE GROUND TO CHINESE RIVALS
Legacy European carmakers lost ground amid the transition. Registrations at Renaul, Stellantis and Volkswagen slipped between 1% and 3%, reflecting intensifying competition.
Chinese automakers, by comparison, posted striking gains. Leapmotor’s sales surged 465.1% in May, while Chery and BYD jumped 244.1% and 136.6%, respectively. Among other manufacturers, Geely (0175.HK), opens new tab and SAIC recorded increases of 12.6% and 13.9%.
Tesla extended its rebound for a fourth consecutive month, with registrations soaring 107.9% to 28,610 units, marking a strong recovery after more than a year of declines.
Reporting by Amir Orusov; Editing by Matt Scuffham
