Electric vehicle sales drive european auto market growth for third consecutive month

According to Bloomberg, Europe’s auto sales rose month on month for the third consecutive month in April, with electric and hybrid models continuing to be popular among consumers.

Image source: Volkswagen

On May 27, data from the European Automobile Manufacturers’ Association showed that new car registrations in Europe rose 7% year on year last month to 1.15 million units. Sales in major markets such as Germany and the United Kingdom also increased, while electric vehicle deliveries surged 38%.

Strong market demand has brought a boost to European automakers, who are struggling with overcapacity, U.S. tariff barriers, and declining sales in China. Local automakers such as Volkswagen and Stellantis, as well as Chinese brands led by BYD, have been rolling out more high-cost-performance models, continuously driving growth in electric vehicle sales. As Europe’s largest automobile market, Germany has introduced a new round of purchase subsidies, and local electric vehicle sales have surged by 41%.

The escalation of the situation in the Middle East has increased consumers' willingness to purchase electric vehicles in regions such as Asia, but the impact of this conflict on car purchasing decisions among European citizens is currently unknown. Bloomberg Industry Research believes that if the conflict continues for a long time, the European car market will also face risks.

Bloomberg Industry Research analyst Gillian Davis said in a May 26 research note, "The situation in Iran is driving up energy costs, which could hit consumer confidence and thereby curb spending on big-ticket items such as cars."

The budget electric vehicle market has shown impressive performance, but high-priced pure electric models continue to struggle with sales, and this trend is becoming increasingly evident. Ferrari's first electric supercar, the Luce, priced at 550,000 euros (approximately 639,000 dollars), has failed to gain recognition from industry commentators and investors. As a result, Ferrari's stock price fell on May 26.

Last month, deliveries of hybrid models in the European market rose year-on-year, while sales of gasoline-powered vehicles declined, further consolidating the structural trend of the market’s shift toward new energy vehicles.

After a sluggish 2025, Tesla is gradually rebounding in the European market; the U.S. automaker's European sales jumped 47% in April. Deliveries by Volkswagen, Stellantis, the Mercedes‑Benz Group and BMW also increased.

Chinese automakers continue to expand into the European market to ease the intense price competition pressure in China. Geely and BYD remain among the best-selling Chinese brands in Europe; Chery Automobile has seen impressive growth, with sales surging 322% year on year, and its Jaecoo SUV is especially favored by British consumers.