Electric car sales overtake petrol vehicles in major milestone as BYD sets sights on Tesla

Felix Reeves

By Felix Reeves


Published: 27/01/2026

- 11:12

BYD could overtake Tesla in sales totals across Europe in 2026

Electric car sales have overtaken new petrol vehicle registrations for the first time in Europe as drivers turn their backs on polluting vehicles.

New data shows that 217,898 new battery electric vehicles were sold in the European Union in December, worth an impressive market share of 22.6 per cent.


In comparison, 216,492 new petrol cars were registered, with unleaded-powered vehicles claiming a smaller market share of 22.5 per cent.

While year-on-year sales of electric cars improved by 51 per cent, petrol sales dropped 19.2 per cent compared to December 2024, noting a clear change in buyer intentions.

The research from the European Automobile Manufacturers Association (ACEA) showed that drivers were opting for electric vehicles, despite policy changes from the European Union.

It announced in December that it would be axing its plan to phase out new petrol and diesel car sales by 2035, with only zero emission vehicles on sale across the bloc from that deadline.

Under the new regulations, automakers will need to comply with a 90 per cent tailpipe emissions reduction target, with the 10 per cent coming from the use of low-carbon steel or e-fuels.

The European Union said it was "taking action" to ensure the motoring sector across the continent remains competitive while moving towards clean mobility.

Electric car charger and an electric vehicle dealership

Electric cars were more popular than petrol vehicles across Europe in December

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GETTY/PA

Buyer intentions also show a distinct change in attitudes to certain manufacturers, especially for electric vehicle automakers.

Drivers across the European Union in 2025 purchased 238,656 electric cars from Tesla, although this is a huge 26.9 per cent drop compared to the 326,525 sales in 2024.

It also saw a 20.2 per cent fall in sales in December 2025, with its market share of new vehicles falling from 4.1 per cent to just three per cent in December 2024.

However, interest in Chinese manufacturing giant BYD has continued to grow, as motorists opt for affordable and technologically advanced electric and hybrid vehicles.

The Xi'an-based manufacturer saw its annual sales rise from 50,912 to 187,657 in 2025, representing a staggering 268 per cent growth.

The Volkswagen Group remains the best-selling manufacturer in the European Union, with total sales from all of its brands seeing 3.57 million registrations.

More than one in four cars sold in the EU last year came from Volkswagen, Skoda, Audi, Cupra, Seat or Porsche.

Volkswagen also remains the most popular manufacturer in the UK with 178,607 sales, with the German brand seeing a 7.4 per cent boost in year-on-year sales.

The Tesla Model Y

Tesla has continued to see its electric vehicle sales plummet across Europe in recent months

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TESLA

The sale of electric cars in the UK is expected to grow over the coming months as more drivers make use of the Government's Electric Car Grant.

The incentive allows motorists to save up to £3,750 off an EV with a list price of £37,000 or less, with 50,000 Britons already making use of the funding.

Chancellor Rachel Reeves announced in the Autumn Budget last November that Labour would provide an additional £1.3billion for the ECG, taking the total amount of funding to almost £2billion.