German Automakers Grow Their Market Share In Europe

German carmakers increased their market share in Europe last year, according to industry data

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

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

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

Hybrids now have the largest market share, rising 3.6 percentage points to 34.5%, excluding plug-in hybrids.

The competition for the German car giants appears to be changing, with Tesla’s market share falling from 2.3% to 1.4%, and the Stellantis group—which includes Peugeot, Opel, and Fiat, among others—losing ground from 16.4% to 15.3%.

In contrast, Chinese firms SAIC and BYD have significantly increased sales, with the latter tripling its share. BYD now has a market share of 1.2%, while SAIC holds 1.9%.

EY expert Constantin Gall said that although the European car market experienced a “slight recovery” in 2025, “growth is only happening at a snail’s pace.”

Private consumers and companies are reluctant to buy due to widespread economic problems, and many people are worried about losing income or jobs.

“The high prices of new cars, which are not only a result of regulatory requirements, are deterring people from buying new cars,” Gall said.

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