EV demand powers Europe car market in May, Chinese rivals expand share

By Amir Orusov

June 23 (Reuters) - Demand for electrified cars continued to underpin growth in Europe's auto market in May, offsetting a sharp decline in petrol and diesel sales and allowing Chinese brands to expand their footprint, data from the European Automobile Manufacturers’ Association (ACEA) showed on Tuesday.

Total car registrations, a proxy for sales, in the European Union, Britain and the European Free Trade Association rose 3.6% to 1,152,523 vehicles in May. For the first five months of the year, registrations were up 4.5% compared with the same period in 2025..

Electrified vehicles dominated the market's momentum. Registrations of battery-electric (BEV), plug-in hybrid (PHEV) and hybrid cars climbed 39.1%, 13.2% and 8.2%, respectively, together accounting for more than two-thirds of all new vehicles registered in May.

"The market continued to benefit from robust consumer demand for a range of electrified technologies across key European markets, sustained by new and revised tax benefits and incentive schemes," the association said in a statement.

In contrast, demand for traditional internal combustion engines weakened sharply, with petrol and diesel sales falling by around 19% each.

LEGACY CARMAKERS CEDE GROUND TO CHINESE RIVALS

Legacy European carmakers lost ground amid the transition. Registrations at Renault , Stellantis and Volkswagen slipped between 1% and 3%, reflecting intensifying competition.

Chinese automakers, by comparison, posted striking gains. Leapmotor's sales surged 465.1% in May, while Chery and BYD jumped 244.1% and 136.6%, respectively. Among other manufacturers, Geely and SAIC recorded increases of 12.6% and 13.9%.

Tesla extended its rebound for a fourth consecutive month, with registrations soaring 107.9% to 28,610 units, marking a strong recovery after more than a year of declines.

(Reporting by Amir Orusov; Editing by Matt Scuffham)