ANKARA

The European passenger car market shrank 3.4% year-on-year in February, with Germany and Italy posting the sharpest declines, according to an industry report released on Tuesday.

The German market saw a 6.4% decrease, followed closely by Italy at 6.2%.

Despite the overall downturn, electric and hybrid vehicles continued to gain momentum, reflecting the ongoing shift toward greener mobility.

Battery-electric vehicle sales surged by 23.7% in February, confirming their growing popularity among EU consumers. Hybrid-electric vehicle sales also saw strong growth, rising 19% on an annualized basis.

Plug-in hybrid electric vehicle sales experienced a slight setback, declining by 1.4% compared to the previous year.

Traditional internal combustion engine vehicles faced significant challenges. Petrol car registrations fell sharply by 22.4%, while diesel vehicle sales plummeted by 28.8%. This marks a continued decline in demand for fossil-fuel-powered cars across the EU.

Tesla, the US-based electric vehicle giant, saw its sales in Europe drop by 41.7% year-over-year to 11,743 units in February.

Tesla's market share decreased to 1.4% this February, down from 2.5% in February 2024.

Year-to-date figure

The European passenger car market contracted by 3% in January-February compared to the same period in 2024, with major markets, including Italy (-6%), Germany (-4.6%), and France (-3.3%), experiencing declines. Spain, however, saw an 8.4% increase.

Battery-electric vehicles accounted for 15.2% of the market, up from 11.5% in 2024, with sales surging 28.4% to 255,489 units in the first two months of this year. Germany (+41%), Belgium (+38%), and the Netherlands (+25%) led the growth, while France saw a slight decline (-1.3%).

Hybrid-electric vehicles remained the most popular alternative, capturing 35.2% of the market with a year-on-year increase of 18.7% in registrations. Petrol and diesel vehicles continued their sharp decline, with their combined market share dropping to 38.8% from 48.5% in 2024.