European Car Market in 2025 stays on recovery path. YTD sales up to November grew by 2.2% with Spain being again the standout country, up by 14.7%. The EV Sector continues to expand in double-digits, firmly led by Germany while Spain and Turkey post largest gains.
Economic Environment
In 2025, the EU GDP is expected to expand by 1.4% by 1.3%, with growth expected to remain steady through 2026 before edging up slightly in 2027. Economic activity has proven more resilient than expected, supported by strong exports early in the year, firmer investment, and continued labour-market strength. Growth momentum is set to continue, helped by easing inflation, improving financing conditions, and sustained support from EU funds, including the Recovery and Resilience Facility. However, global conditions remain challenging, with high U.S. tariffs, geopolitical tensions, and weak external demand weighing on the outlook.
Inflation is projected to fall to around 2% in both the EU and euro area in 2025, stabilizing near central bank targets through 2027 as energy prices ease and wage pressures moderate. Net exports are expected to subtract from growth in 2025 and 2026 due to trade restrictions and redirected global supply, before turning neutral in 2027. Investment is forecast to rise steadily, boosted by stronger equipment spending, improved corporate balance sheets, and accelerating use of EU funds. Labour markets are expected to remain tight, with unemployment hovering near historic lows and productivity picking up as employment growth slows. Fiscal deficits in both the EU and euro area are projected to widen gradually through 2027, driven by rising defence spending and higher interest costs despite partial consolidation efforts.
Automotive Industry Trend and Outlook
The European Car Market totaled 13,2 million units sold up to November 2025, with a 2.2% gain in year-on-year volume compared to the prior year.
Looking at cumulative data, Germany retained the top spot. With a 0.6% year-on-year growth, it accounted for 19.7% of total European sales. UK followed in 2nd with a 14.2% market share (+3.4%). France closed the podium with a share of 11.1% (-5%).
Italy ranked 4th with a 10.7% share (-2.4%), followed by Turkey in 5th with a 8.9% share (+10.1%).
Spain ranked 6th (+14.7%), followed by Poland in 7th (+6.8%), Belgium in 8th (-9.2%) and in 9th by Netherlands (-1.5%). Austria -up 1 spot- closed the Top 10 (+13.6%).
EV Market Trend and Outlook
Europe’s EV market shows continued acceleration in 2025. YTD sales up to November grew by 28% to reach a 14% share of the total. The market is becoming increasingly competitive, with traditional automakers and new entrants trying to secure market share.
Moreover, more stringent CO2 emission targets results in regulatory pressure, continuing to prompt EV adoption across the continent.
Germany was still the sector leader, with a 19.2% share and a 39.9% increase. France gained 1 spot into 2nd, growing 1% to a 12.2% share while the UK closed the podium, down 12.5% with a 11.8% share.
Notably, Turkey climbed 3 spots into 4th growing 107.8% while Spain emerged as new contender, up by 135.3% and 4 spots.
Medium-Term Market Trend
The European automotive market, spanning 43 countries from Portugal to Russia, was the third-largest globally in 2024, following Asia and the Americas, with 14.17 million new car sales, marking a 0.9% increase from 2023.
From 2014 to 2019, regional sales grew steadily, rising 17.19% and reaching a decade-high in 2019.
However, the COVID-19 pandemic severely impacted the market in 2020, causing a 21.2% drop due to lockdowns, economic uncertainty, and supply chain disruptions.
In 2023, the market rebounded, growing by 16%, driven by pent-up demand and government incentives, stabilizing at around 14 million units into 2024.
Meanwhile, EV sales expanded rapidly, growing 183% between 2014 and 2017, fueled by technological advancements and supportive policies. Despite the COVID-19 crisis, the EV market nearly doubled in 2020, continuing a steady 300% increase from 2020 to 2024, reaching 15% market share, thanks to strict emissions regulations, improved charging infrastructure, and rising consumer awareness of sustainability.
Tables with sales figures
In the tables below we report sales for the top 20 countries.
