European car sales rose for the fifth consecutive month in November, with Tesla sales down 11% and BYD surging over 220%.

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Driven by strong growth in electric vehicles, the European new car market continues its recovery trend, with November sales achieving year-on-year growth for the fifth consecutive month.

On December 23, according to data from the European Automobile Manufacturers Association (ACEA), overall market car sales in November, including the EU, UK, and European Free Trade Association, grew 2.4% year-on-year to 1.1 million units.

Electric vehicles became the main driver of market growth, with battery electric vehicles accounting for 21% of the EU market share, 26% in the UK, and as high as 98% in Norway. Major markets such as Germany, Italy, and Spain all saw significant growth in electric vehicle registrations.

In the battery electric vehicle (BEV) sector, the two giants BYD and Tesla showed vastly different trajectories. BYD's registrations in November surged 221.8% year-on-year, with a market share of 2%, while Tesla's registrations declined 11.8%; despite setting sales records in Norway, its market share fell to 2.1%.

Despite the recent positive trend, ACEA warns that overall sales remain far below pre-pandemic levels. Analysts believe that the European auto industry is at a critical crossroads of transformation, facing not only intense cost-effective competition from China and pressure from U.S. import tariffs, but also challenges to its own profitability.

Electric vehicles lead market growth

Electric vehicles performed strongly in November, with all types of electrified vehicles achieving substantial growth in registrations.

According to ACEA data, battery electric vehicle registrations grew 44.1% year-on-year, hybrid vehicles grew 38.4%, and plug-in hybrid vehicles grew 4.2%.

The three types of electrified vehicles combined accounted for 65.6% of the EU market share, a significant increase from 56% in August 2024. This growth was mainly driven by strong performance in major markets such as Germany, France, Spain, and Italy.

Data show that from the beginning of 2025 through November, new registered battery electric cars reached 1.66 million, accounting for 16.9% of the market share. Growth in Germany, Belgium, the Netherlands, and France provided key support for the overall data.

In terms of powertrain choices, hybrid vehicles (HEVs) continue to consolidate their position as the top choice for European consumers.

In the first 11 months of 2025, hybrid vehicle registrations increased to 3.4 million, capturing 34.6% of the market share. Major markets such as Spain, France, Germany, and Italy all recorded strong growth.

Meanwhile, plug-in hybrid vehicles (PHEVs) also maintained growth momentum, with their market share rising from 7.1% last year to 9.3% this year.

Diverging performance of BYD and Tesla

Global electric vehicle giants BYD and Tesla are showing different development paths in the European market.

Data show that BYD's registrations in November skyrocketed 221.8% year-on-year, demonstrating its rapid expansion in the European market.

In contrast, Tesla's November registrations dropped 11.8%. Even though it set sales records in Norway, this was not enough to offset declines in other markets.

The two companies' market shares in Europe are close, with Tesla at 2.1% and BYD at 2%. Analysts point out that this comparison highlights changes in the competitive landscape of the European electric vehicle market, as Chinese brands leverage pricing advantages and product innovation to challenge the market status of traditional EV leaders.

Traditional fuel vehicles continue to decline

As electrified models become more popular, the market space for traditional internal combustion engine vehicles is being further squeezed.

Data show that gasoline vehicle registrations fell 18.6% year-on-year, with market share dropping from 33.7% a year ago to 27%. All major markets saw declines, with France experiencing the biggest drop at 32.1% and Germany down 22.4%.

Diesel vehicles performed even worse, with registrations down 24.4% and market share at only 9%. Combined, gasoline and diesel vehicle market share plunged from 45.8% in the same period of 2024 to 36.1%.

Monthly November data show that gasoline and diesel vehicle registrations dropped 21.9% and 23.2% respectively, indicating that the consumer shift toward electrification is accelerating.

Market recovery still needs time

Despite five consecutive months of growth, ACEA points out that overall European car market sales remain far below pre-pandemic levels. In the first 11 months of 2025, new EU car registrations grew by only 1.4% year-on-year, indicating a relatively slow pace of recovery.

The European automobile industry currently faces multiple challenges, including competitive pressure from China, potential U.S. import tariffs, and meeting EU electrification regulations while staying profitable.

The European Commission last week announced plans to possibly abandon the 2035 ban on fuel vehicles, seen as a major concession in the EU's green policy.

However, analysts believe that in the long term, electric vehicles remain the direction of industry development, and the current growth trend heralds a continued deepening of Europe's electrification transition.

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