BERLIN, Oct. 29 (Xinhua) -- Europe's car market showed early signs of recovery this year, led by surging demand for electric vehicles in Germany, according to the European Automobile Manufacturers' Association (ACEA).
New car registrations in European Union (EU) rose about 10 percent in September from a year earlier, marking the third consecutive monthly increase, said the report released on Tuesday. That brought the bloc's total registrations for the first nine months of 2025 to 8.06 million vehicles, lifting year-to-date growth into positive territory at 0.9 percent.
Growth was largely driven by battery-electric vehicles (BEVs), whose registrations climbed 24 percent in the first nine months, with Germany up 38.3 percent, far outpacing other major markets including Belgium, the Netherlands and France.
German carmakers Volkswagen, BMW and Mercedes-Benz benefited in particular from the market rebound, expanding their combined EU market share to 39.6 percent in the first nine months from 38.2 percent a year earlier. Though U.S. carmaker Tesla's EU sales dropped 39 percent in the same period.
Despite the rebound, ACEA cautioned that the current market share of BEVs remains "below the pace required at this stage of the transition."
Constantin Gall from consulting firm EY said demand for new cars in Europe remains weak, with little sign of a sustained turnaround. He noted that consumers remain very reluctant to buy new cars due to high prices, significant political uncertainty and growing concerns about the economy and jobs.
In Germany, BEVs accounted for 18.1 percent of new registrations in the first nine months, slightly higher than the whole EU market, ACEA data showed. Sluggish demand for electric cars continues to pressure automaker's margins, whereby political divisions in the country have deepened over the future of combustion engines.
German Chancellor Friedrich Merz has vowed to push for a relaxation of the EU's 2035 ban on new combustion-engine cars, while Finance Minister Lars Klingbeil is moving to extend the vehicle tax exemption for electric cars.
Under the new tax exemption measure, which has already been approved by the cabinet, BEVs registered until 2030, rather than the previous deadline of 2025, will remain exempt from vehicle tax for up to 10 years, with the benefit available until 2035.
Hildegard Mueller, president of the German Association of the Automotive Industry, said the measure must be formally enacted as planned this year to avoid uncertainty among consumers and prevent a drop in demand. ■
