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Sales of Electric Vehicles Surge in Europe.


In December 2025, the EU automotive market reached a turning point as electric vehicles (EVs) sales surpassed those of petrol cars, reflecting a 51% year-on-year increase from December 2024 (Figure 1). Despite policymakers proposing to loosen emissions regulations around petrol and diesel car sales, EVs car sales have kept increasing throughout 2025.

 



Figure 1 – “EU car registrations by type, December 2024 and December 2025. Source: ACEA” (CarbonBrief).

 


Currently, hybrid electric vehicles (HEVs) still make up the biggest share of the EU Car Market (Figure 2), however analysts forecast a steady growth for EVs despite policymakers weakening the 2035 ban on internal combustion engine (ICE) cars. This change was a result of EU car manufacturers struggling against Chinese (BYD) and U.S. (Tesla) competitors rapidly increasing their share in the EU market.


 


Figure 2 – “Car market share by type, December 2025” (Reuters).

 


What this signifies.

This trend aligns with a wider movement around the energy transition, as seen in October 2025 when renewable energy overtook coal in generating electricity or how global investment in the energy transition hit a record $2.3 trillion in 2025. These are not small wins – they are clear indicators of a larger global shift toward decarbonisation.

 


Should you and your organisation switch to EVs?

The short answer is yes, and as soon as possible. In the EU, road transport is the biggest share (73%) of total transport emissions. And yet, since 2005, road transport has shown very little greenhouse gas (GHG) emissions reductions. Globally, the trend is similar: emissions from the road sector have actually increased by 8% since 2015 and represent about one-sixth of global emissions. As such, EVs have been identified to be the key solution to decarbonising public, private and commercial freight transports including heavy-duty.


It is important to note that despite the absence of tailpipe GHG emissions – benefitting urban air quality – EVs tend to have a higher embodied carbon footprint at the production stage than conventional ICE vehicles. Yet throughout their lifecycle, EVs emit about 60% less than petrol or diesel cars. A typical EV therefore only takes one year in operation  to achieve carbon “parity” with an ICE vehicle (or about 24,140 km).


Beyond emitting less GHG emissions, EVs have other benefits by lowering fuel expenses, and are supported by purchase incentives and tax advantages. They also lower noise pollution and contribute to cleaner air. Their downsides, such as range and access to charging points are continuously and rapidly being improved.


Hence, it comes to no surprise that switching from ICE vehicles to EVs is the right thing to do. This is why the UK’s Department for Transport launched its “Get That Electric Feeling” campaign to send a clear signal to consumers that the switch should be made now.

 


Discussion and Call-to-action.

Despite a weakening of regulations at the EU Government level, sales of EVs are expected to grow steadily, gaining more market share. This is because the benefits of electrification are recognised to go beyond the reduction of GHG emissions to also reducing costs and air pollution. Therefore, instead of weakening regulations, the government should recognise this global trend and provide additional support to EU car manufacturers to meet the increasing demand for EVs by: 1) Implementing consumer subsidies for European-made products and 2) accelerate infrastructure (charging points) development.


At the organisational level, companies should begin their fleet electrification process as soon as possible to benefit from cost savings, reach their carbon footprint objectives, and contribute to a cleaner environment. This should also be done in line with a wider range of initiatives to reduce transport emissions as laid out in our resource: Reducing Travel Emissions.


Individuals should also consider changing their ICE vehicles to electric alternatives as soon as it becomes economically feasible for their household. Regardless of personal preferences, governments are increasingly introducing policy targets and regulatory timelines to phase out the sale of new ICE passenger cars.

 

It is now clear that the electrification of transport systems is progressing, with road transport representing the most advanced and immediately viable segment of this transition. While these developments are encouraging, the pace of change remains insufficient to meet climate and net zero objectives. In this context, membership organisations are uniquely positioned to support and guide their members in navigating and accelerating their sector’s and members’ transitions.

 

If you are a membership body and you are unsure what this looks like for you, CAFA has guidance, 1:1 support, and resources that you can use for free. Join here for access.


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