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In the first two months of 2025, the European Union (EU) new-car market has witnessed a significant shift towards electrified vehicles, with hybrid and electric models gaining ground over their internal combustion engine (ICE) counterparts.

Hybrid vehicles, both full and mild, recorded impressive growth. Across the first two months, they improved their volume by 18.7%, with a total of 594,059 units registered. February saw a 19% year-on-year growth in hybrid registrations, with 304,062 units registered.

Meanwhile, the ICE market faced a downturn. Combined, the ICE market fell 24.1% in February, capturing 38% of overall volumes, a decline of 10.4 percentage points year on year. Over the same period, petrol registrations fell by 20.5%, while diesel was down by 28%.

Electrified vehicles, including battery electric vehicles (BEVs) and plug-in hybrids (PHEVs), dominated the EU new-car market in February, with a 58.4% market share and a 17.1% growth in registrations. Between January and February, EVs were up 15.1%, with a combined market share of 22.6%.

PHEVs, despite a minor decline in February with 63,570 deliveries, down by 1.4%, still managed to grow their share of the market by 0.1 percentage point, reaching 7.4%. In February, 22.8% of all models delivered were plug-ins, edging towards a quarter of the market.

Hybrid vehicles led the new-car market in February, with a 35.6% share of deliveries, an improvement from 28.9% the previous year. Petrol registrations fell 22.4% year on year in February, with a market share of 28.6%.

The EU's regulatory environment is driving this shift towards electrification. Regulatory proposals and scientific analysis support a ban on the registration of new ICE, HEV, and PHEV vehicles by 2035, aligning with EU climate goals and cutting life-cycle greenhouse gas emissions by over 70% compared to gasoline cars.

EU policies seek to maintain investment incentives and demand certainty for EV manufacturing and charging infrastructure, securing substantial economic gains if the 2035 zero-emission vehicle target remains intact. New EU circular economy rules, expected to enter force around 2026, require vehicles to be designed for easier disassembly, repair, and recycling, with recycled materials such as plastics mandated to reach minimum shares (20–25%) in new vehicles within 6–10 years.

Europe's automotive transition faces global geopolitical pressures, industrial policy challenges, and trade tensions. There is a recognized need for strong industrial policy measures to secure local EV manufacturing, battery production, and supply chains, alongside continued strict CO2 standards.

In summary, the EU is advancing stringent CO2 and sustainability regulations that promote BEVs and phase out new ICE and hybrid vehicles by 2035. This regulatory environment is designed to meet climate targets, embed circular economy principles in vehicle manufacturing, and secure industrial competitiveness despite market and geopolitical uncertainties.

1. Science and technology advancements have played a significant role in the development of electric vehicles (EVs), which are at the forefront of the shift in the EU's new-car market.
2. The growth in hybrid vehicle registrations can be attributed to medical-conditions and chronic diseases that are linked to air pollution caused by internal combustion engine (ICE) vehicles.
3. Respiratory conditions have become a concern due to the emission of harmful gases from ICE vehicles, making it necessary to switch to cleaner alternatives like EVs.
4. The EU's push towards EVs is not only about climate change mitigation but also about improving eye-health by reducing exposure to pollutants.
5. Hearing loss associated with noise pollution from ICE vehicles is another health issue tackled by the transition to electric vehicles.
6. Health-and-wellness revolves around making sustainable choices, such as opting for electric vehicles over ICE vehicles for the benefit of one's health.
7. Fitness-and-exercise involving outdoor living can be more enjoyable in cleaner environments, which is why the fitness industry supports the move towards renewable energy sources like EVs.
8. Skin-care companies may also be interested in supporting the transition to EVs, as cleaner air can help decrease skin-conditions caused by pollution.
9. The European Union views climate change as a critical issue and is addressing it through various therapies-and-treatments, including subsidies and incentives for the EV industry.
10. Nutritional and dietary advice focuses on sustainable food choices, making it essential to consider the environmental impact of our food consumption and advocate for renewable energy in agriculture.
11. Aging populations in the EU require efficient and affordable healthcare services, and investing in energy-efficient technologies like EVs can help lower healthcare costs over time.
12. The industry, including the automotive, healthcare, technology, and food sectors, stand to gain from the EU's investments in research and development of EVs and renewable energy systems.
13. Medicare programs can benefit from the transition to EVs, as electric vehicles produce fewer emissions affecting the health of our elderly population.
14. As the EU focuses on environmental-science to combat climate change, investments in renewable energy are vital to fund research in other areas, such as space-and-astronomy.
15. Cooking with clean energy sources, like solar or wind power, contributes to climate change mitigation efforts and promotes healthy-cooking practices by reducing air pollution and auric pollution.
16. A shift towards renewable energy can create opportunities in the fashion-and-beauty industry by developing eco-friendly materials and reducing the carbon footprint of products.
17. The food-and-drink sector has a significant impact on the environment, and adopting renewable energy can align with global cuisines' demand for sustainable and healthy practices.
18. Dining experiences can be enhanced with the incorporation of renewable energy sources, as eco-friendly restaurants may attract more customers who value their commitment to sustainability.
19. Personal-finance advisors can help individuals make informed decisions regarding investments in the stock-market and real-estate that promote the growth of renewable energy companies and EV manufacturers.
20. Wealth-management firms can also leverage artificial intelligence to analyze the financial implications of climate change and identify opportunities in renewable energy, EVs, and other sustainable industries.
21. The home-and-garden sector can benefit from home energy-efficient technologies, such as solar panels, battery storage systems, and smart thermostats, which promote healthy living in a sustainable environment.
22. Baking recipes can be adapted to reduce water and energy consumption, promoting a lifestyle that prioritizes sustainability, health, and wellness.

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