Data released by the European Automobile Manufacturers Association (ACEA) on Tuesday showed that the growth of the European automobile market in May continued to be supported by demand for electrified vehicles, offsetting the impact of a sharp decline in sales of gasoline and diesel vehicles and allowing Chinese brands to further expand their market share.
Car registrations, a proxy for sales, showed new car registrations in the EU, UK and EFTA rose 3.6% in May to 1,152,523 vehicles. In the first five months of this year, registrations increased by 4.5% compared with the same period in 2025.
Electrified vehicles dominate market growth momentum. The registrations of pure electric vehicles (BEV), plug-in hybrid electric vehicles (PHEV) and hybrid vehicles increased by 39.1%, 13.2% and 8.2% respectively. The three together accounted for more than two-thirds of all new car registrations in May.
The association said in a statement: "In key European markets, consumer demand for a variety of electrification technologies remains strong and continues to benefit the market, while new and revised tax benefits and incentives provide support for this trend."
In contrast, demand for traditional internal combustion engine vehicles has weakened significantly, with sales of both gasoline and diesel vehicles falling by about 19%.
During the transformation of the automobile industry, traditional European automobile manufacturers have lost some market share. Renault, Stellantis and Volkswagen registered declines ranging from 1% to 3%, reflecting increased competition.
In contrast, Chinese car companies recorded significant growth. Sales of Leapmotor surged 465.1% in May, while sales of Chery and BYD surged 244.1% and 136.6% respectively. Among other car companies, Geely and SAIC grew by 12.6% and 13.9% respectively.
Tesla continued its rebound for the fourth consecutive month, with registrations up 107.9% to 28,610 vehicles, a strong recovery after more than a year of decline.