German auto giants expand market share in Europe in 2025

German car manufacturers increased their market share in Europe last year, industry figures showed.

Together, Volkswagen, BMW and Mercedes achieved a market share of 39.9% of new cars sold across the continent in 2025, up 1.2 percentage points from the previous year according to data from the European Automobile Manufacturers' Association (ACEA).

Overall, sales of new vehicles in the EU rose by 1.8% to 10.8 million in 2025. This was the highest figure this decade – but it remains well below the pre-coronavirus level of 13 million cars in 2019, consulting firm EY said.

The share of fully electric cars rose significantly from 13.6% to 17.4% in 2025. In contrast, fossil fuel vehicles declined significantly, falling from 33.3% to 26.6%.

Hybrids now have the highest market share, climbing by 3.6 percentage points to 34.5%, not counting plug-in hybrids.

The competition for Germany's carmaking giants appears to be shifting, with Tesla's market share collapsing from 2.3% to 1.4% and the Stellantis group - which includes Renault, Opel and Fiat - losing ground from 16.4% to 15.3%.

In contrast, the Chinese companies SAIC and BYD were able to significantly boost sales, with the latter tripling its share.

BYD now has a market share of 1.2%, while SAIC holds 1.9%. 

Expert Constantin Gall from EY said that while the European car market did see a "slight recovery" in 2025, the "upturn is only happening at a snail's pace."

Private consumers and companies are reluctant to buy due to broad economic struggles, with many people concerned about losing income or their jobs.

"The high prices of new cars, which are not least due to regulatory requirements, are deterring people from buying new cars," said Gall.