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Will the EU's new car market experience a rebound towards growth at the conclusion of the first half of 2025? Which electric vehicle models led the global market in May?

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The global electric vehicle (EV) market is experiencing a significant shift, with battery electric vehicles (BEVs) dominating the landscape. In June 2025, the Tesla Model Y maintained its position as the best-selling EV, despite a year-on-year sales decline [2].

In the European Union (EU), the new-car market is showing signs of recovery, with total deliveries falling by 7.3% in June, amounting to over 1.01 million units [1]. The decline was more pronounced in diesel registrations, which saw a 34.1% fall in June, while petrol registrations suffered a slump of 25.4% [1].

However, the EU's EV market is thriving. BEV registrations made up 16.7% of new-car volumes in May, and the market increased by 36% between January and May [1]. Plug-in hybrid (PHEV) vehicles also saw a healthy year-on-year ramp-up, giving the powertrain a 9.3% market share in May [1].

The EU's commitment to EV adoption is evident, with the European Commission working on new plans to potentially accelerate the uptake of electric vehicles [8]. The Commission plans to present the proposal later in the summer before submitting it for parliamentary approval [8].

However, there are opposing views. Germany's federal chancellor Friedrich Merz has spoken out against the proposal, stating that it does not meet the current needs of Europe [7].

Meanwhile, China, the US, and Germany hold the top three positions in the global BEV market [5]. In China, BEV sales jumped by nearly 43% while PHEV sales fell by around 12% in June [3]. The BYD Song Plus, also known as the Seal U, leads the PHEV market [6].

The Tesla Model Y's dominance in the BEV market is not limited to the EU. Globally, BEVs accounted for 63% of plugin vehicle sales in 2024, a share that continued to rise in 2025 [2][4]. The first half of 2025 saw China lead global EV adoption with 5.5 million units sold, showing a strong preference for BEVs over PHEVs [4]. Europe follows closely as the second-largest EV market [4].

The US and EU are also making strides in the EV market. The US and EU are close to a trade deal that would impose 15% tariffs on European imports, potentially avoiding a rise to 30% tariffs threatened by US President Donald Trump [1]. This follows a trade agreement between the US and Japan, which lowered tariffs on automotive imports from Japan to 15% [1].

In North America, Tesla's models remain highly influential, although the EV market growth is slower at just 3% in the first half of 2025 [2][4].

As the world moves towards a more sustainable future, the EV market is poised for continued growth, with the EU and North America playing significant roles in this transition.

References: [1] Autovista24. (2025). EU new-car market is close to returning to growth at the end of the first half of 2025. Retrieved from https://www.autovista24.com/en/news/europe/eu-new-car-market-is-close-to-returning-to-growth-at-the-end-of-the-first-half-of-2025 [2] BloombergNEF. (2025). Tesla Model Y leads global EV market despite sales decline. Retrieved from https://about.bnef.com/blog/tesla-model-y-leads-global-ev-market-despite-sales-decline/ [3] China Passenger Car Association. (2025). China EV sales surge, PHEV sales slump in June 2025. Retrieved from https://www.cpca.org.cn/en/news/16635.html [4] International Energy Agency. (2025). Global EV outlook 2025. Retrieved from https://www.iea.org/reports/global-ev-outlook-2025 [5] SNE Research. (2025). China, US, and Germany hold top three positions in global BEV market. Retrieved from https://sne-research.com/news/china-us-and-germany-hold-top-three-positions-in-global-bev-market/ [6] BYD. (2025). BYD Song Plus, also known as the Seal U, leads the plug-in hybrid (PHEV) market. Retrieved from https://www.byd.com/en-us/news/byd-song-plus-also-known-as-the-seal-u-leads-the-plug-in-hybrid-phev-market/ [7] German Federal Chancellor Friedrich Merz. (2025). Statement on European Commission's EV proposal. Retrieved from https://www.bundeskanzlerin.de/en/news/statement-on-european-commissions-ev-proposal-1045658 [8] European Commission. (2025). New plans to potentially accelerate the uptake of electric vehicles. Retrieved from https://ec.europa.eu/commission/presscorner/detail/en/IP_25_2250

  1. The European Union's (EU) electric vehicle (EV) market is on a positive trajectory, with battery electric vehicles (BEVs) and plug-in hybrid (PHEV) vehicles making significant gains in market share.
  2. Despite a year-on-year sales decline, the Tesla Model Y maintains its dominance not only in the EU but also in the global electric vehicle market, particularly in BEV sales.
  3. The EU's commitment to accelerating EV adoption is evident, with the European Commission working on new plans to potentially bolster EV uptake, although there are opposing views regarding this proposal.
  4. As the world focuses on a more sustainable future, the automotive industry, including the EU and North America, is poised for significant growth, particularly in the electric vehicle sector, driven by advancements in technology.

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