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## Booming Electrification Trend in EU's New-Car Market
In a remarkable shift, the European Union's new-car market witnessed a surge in electrified vehicles during May 2025. Hybrid-electric vehicles emerged as the frontrunners, driving growth in the four largest markets: France, Germany, Italy, and Spain.
### Hybrid-electric Vehicles on the Rise
The hybrid-electric segment experienced a substantial 16% increase in deliveries year-on-year, amounting to 315,597 units. This growth is particularly noteworthy as it helped hybrid-electric vehicles maintain a strong presence in the EU market.
### Slowing Down of Battery Electric Vehicles (BEVs)
While Battery Electric Vehicles (BEVs) continued to hold a significant share, their growth pace slowed down slightly compared to previous months. BEVs accounted for 15.4% of all new-car registrations, marking a 7.2 percentage point increase from the same period last year. However, certain manufacturer pools experienced decreases in BEV shares compared to the previous month. Despite this, some pools like Hyundai showed an increase, with a notable rise in BEV share.
### Steady PHEV Performance
Plug-in Hybrid Electric Vehicles (PHEVs) maintained a steady share of 9% in May, with no significant growth or decline reported. PHEV deliveries grew by 46.9% in the year-to-date, and volumes increased by 657.6% in Latvia.
### Growing Electrified Vehicles Market
Electrified vehicles (BEVs and PHEVs) continued to see growth in May, accounting for 24.8% of the EU new-car market, up 5.8 percentage points. Germany was the leading market in terms of volume, with 25,181 units delivered, marking a 1.2% year-on-year increase. Lithuania recorded the largest registration increase, up 43.8% year on year, although it is a low-volume market.
### Decline in Internal Combustion Engine (ICE) Vehicles
The growth in electrified vehicles was accompanied by a significant decline in Internal Combustion Engine (ICE) vehicles. ICE registrations fell by 21% year-on-year, with a share of 37.7%. Diesel models saw a greater drop, down 27.6% to 85,698 registrations, while petrol-powered models accounted for 28.5% of the overall total, down from 35.6%.
In summary, the EU's new-car market is witnessing a shift towards electrification, with hybrid-electric vehicles leading the charge. However, the growth pace of BEVs has slowed down slightly, and ICE vehicles are seeing a significant decline. The market is expected to continue this trend in the coming months, as the transition towards a more sustainable future continues.
- The surge in electrified vehicles has extended to the finance industry, as investors show increased interest in automotive companies specializing in electric-vehicles.
- The rise in hybrid-electric vehicles has sparked discussions in the transportation sector, suggesting a need for infrastructure advancements to accommodate the growing demand for charging stations.
- As lifestyle preferences lean towards sustainability, the trend of electrification in the automotive industry is expected to influence various aspects, such as urban planning and transportation policies.
