Europe’s electric vehicle market is experiencing another milestone year, driven by surging demand, competitive new entrants, and an increasingly diverse mix of powertrains. With a 27.1% year-on-year increase in EV registrations recorded between January and September 2025, it is clear that the region’s appetite for electrified mobility continues to expand. According to EV Volumes, a total of 2,720,459 battery-electric vehicles (BEVs) and plug-in hybrids (PHEVs) hit the road in the first nine months of the year. Behind this growth sit several important storylines, from the rise of Chinese manufacturers to Volkswagen’s relentless acceleration in electrification.
What stands out is how this expansion is no longer driven by just one type of technology. BEVs continue to deliver volume, but PHEVs have made a remarkable comeback, widening their share and reshaping the powertrain conversation across Europe. At the same time, new players are establishing themselves with surprising speed, challenging long-standing European leaders in ways that would have seemed unlikely even a few years ago.
This year’s growth trajectory was fueled significantly by a strong third quarter, which saw 926,519 new EV deliveries. That represents a 34% improvement compared to the same period in 2024, reinforcing the momentum behind Europe’s electrification push. While government incentives, rising model availability, and improved charging networks all play a role, there is no denying the impact of fierce competition, especially from emerging non-European brands.
Throughout 2025, PHEVs have proven to be a standout performer. EV Volumes data indicates that the technology recorded a 31.5% rise in demand between January and September, totaling 919,112 deliveries. This is especially notable given that the first half of the year saw a more modest growth rate of 21.7%. Monthly PHEV volumes have built steadily, culminating in a remarkable 55.7% surge in September. With 130,179 PHEVs sold that month alone, the powertrain achieved its strongest year-on-year growth since mid-2021 and its highest monthly volume since December 2022.
As a result, PHEVs now hold a 33.8% share of Europe’s EV market, up from 32.7% during the same period in 2024. BEVs still dominate, with a 66.2% share, but this shift indicates that plug-in hybrids continue to offer a compelling bridge technology for buyers who want electrification without fully committing to a pure-electric lifestyle.
BEVs, for their part, recorded strong volumes across the first three quarters, reaching 1,801,347 units and growing 25% year on year. September alone brought 257,297 BEV registrations, marking the ninth consecutive month of double-digit growth and the highest monthly tally since December 2022. The consistency of this momentum reinforces consumer confidence in battery-electric technology and the increasing affordability of many models.
But while both powertrains are thriving, the pressing question is: Which brands are capitalizing the most on Europe’s electrification surge?
One of the most compelling developments of 2025 has been the rapid ascent of Chinese automotive brands in the European EV ecosystem. While discussions around EU tariffs, competitive pricing, and localized production dominate industry headlines, the sales figures tell another story: demand is undeniably rising.
Leading the charge is BYD, which has firmly established itself as the fastest-growing EV brand in Europe this year. With a stunning 302.6% year-on-year increase across the first three quarters, BYD climbed to eighth place in Europe’s EV sales rankings. The company sold 119,085 units, translating to a 4.4% market share—up by a striking 3 percentage points compared to 2024. In the third quarter alone, BYD registered 48,336 vehicles, securing a 4.8% share of the market.
A major contributor to BYD’s success has been the Seal U plug-in hybrid. For the first time ever, a Chinese model topped Europe’s cumulative PHEV rankings, surpassing long-running leaders from Volkswagen and Volvo. The Seal U recorded 45,837 registrations between January and September, just ahead of the VW Tiguan. In September alone, it tallied 10,089 units, making it the third best-selling EV overall for the month, surpassed only by the Tesla Model Y and Model 3.
Xpeng has also gained meaningful traction, recording a 185.3% increase in EV registrations and reaching 12,729 units over nine months. Its G6 SUV has resonated particularly well with European buyers, capturing 8,751 units so far and helping the brand gain visibility in a challenging landscape.
Lynk & Co has continued its steady presence in the European market, growing deliveries by 20.8% to 6,351 units. Unlike Xpeng, which focuses exclusively on BEVs, Lynk & Co leans heavily on plug-in hybrids. More than 85% of its sales came from its 01 PHEV, highlighting the brand’s strategic adaptation to European consumer preferences and tariff structures.
Though Chinese EV brands have managed impressive growth, the road into Europe is not without challenges. The EU’s tariffs on Chinese-built BEVs, introduced in October 2024, have reshaped pricing strategies and accelerated discussions around localized production. For brands shipping fully built BEVs from China, the financial burden is substantial, prompting some to consider shifting more attention to PHEVs, which face the standard 10% import duty.
This is why a brand’s powertrain mix has become more than just a product strategy—it is now a regulatory navigation tool. Xpeng’s all-BEV portfolio leaves it fully exposed to BEV-specific tariffs. Lynk & Co, on the other hand, mitigates risk through heavy PHEV reliance. BYD has chosen a middle ground, balancing BEVs and PHEVs almost evenly, with plug-in hybrids making up 40.1% of its European EV mix.
Even amid intense competition from new entrants, established European brands are hardly stepping aside. Volkswagen remains the largest EV seller in Europe, with 305,746 units delivered between January and September. That is an extraordinary 104.6% increase year over year, pushing VW’s market share to 11.2%, up by 4.2 percentage points. The brand also led the third quarter with 101,683 registrations, an 84.8% year-on-year jump.
Three of Volkswagen’s BEVs performed exceptionally well across the region. The ID.3 ranked fourth in the European BEV market with 57,699 units sold. Close behind were the ID.4 and ID.7, which posted 56,186 and 53,570 registrations respectively. These models demonstrate that VW’s multi-segment BEV portfolio is resonating with European consumers, particularly as charging accessibility improves and total cost of ownership narrows.
In the PHEV arena, the VW Tiguan put up a strong fight, closing the period with 45,277 deliveries—just 560 units behind BYD’s Seal U. This close competition highlights how dynamic the PHEV segment has become, with new challengers pushing established favorites harder than ever.
As Europe’s EV market matures, the story is no longer simply about electrification vs combustion. It is about BEVs vs PHEVs, incumbents vs newcomers, Europe vs China, and value vs innovation. What is clear from 2025’s data is that Europe’s EV landscape is becoming more competitive, diverse, and fast-moving by the month.
Brands that adapt quickly to tariffs, consumer preferences, and infrastructure realities will continue to succeed. Those that fail to evolve may find themselves edged out by newcomers who are not just participating in Europe’s EV market, but defining entirely new expectations for value, performance, and accessibility.
