Thermal Engines Losing Ground in New Car Sales

In a significant shift, thermal engines have lost their dominance over new car sales in the European Union. A study by TechGaged Research reveals that gasoline and diesel vehicles now account for only 36.6% of new registrations in 2025.

Key Takeaways

  • The share of thermal engines has dropped to 36.6%, with gasoline at 31.28% and diesel at 9.2%.
  • Electrified vehicles now represent over 60% of new car registrations, with hybrids leading the market.
  • Germany saw a 39.4% increase in electric vehicle sales despite reduced subsidies.

The study by TechGaged Research indicates that thermal engines no longer dominate the European Union’s new car market. In 2025, gasoline and diesel vehicles represent only 36.6%, with individual shares of 31.28% for gasoline and 9.2% for diesel.

Electrified vehicles have taken over as the dominant force in the market, accounting for more than 60% of new car registrations. Hybrids lead with a 34.6% share, followed by fully electric cars at 16.4%, and plug-in hybrids at 9.1%.

The rapid transformation is highlighted by Germany’s increase in electric vehicle sales to 39.4%, despite reduced government subsidies. This shows that demand for electrified vehicles is growing independently of financial incentives.

While the shift towards electrification is clear, thermal engines are not yet obsolete. Regulations and market dynamics will continue to shape their future presence until at least 2035.

Frequently Asked Questions

What percentage of new car sales in the EU are now electrified vehicles?

Electrified vehicles represent over 60% of new car registrations, with hybrids leading at 34.6%, followed by fully electric cars at 16.4%, and plug-in hybrids at 9.1%.

How have diesel vehicle sales fared in the EU?

Diesel vehicle sales continue to decline, representing only 9.2% of new car registrations in the EU as of 2025.

The shift towards electrified vehicles is evident across Europe, with Germany leading the way despite reduced subsidies for electric cars. This trend suggests that demand for thermal engines will continue to diminish over time.

Michael Chen
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Automotive Market Analyst

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