Car sales surge by 18.9%, making up a significant 20% of the market, with electric vehicles leading the charge
In the first seven months of 2025, new vehicle registrations exhibited a diverse yet generally positive trend, depending on the region and vehicle type.
The story begins in Austria, where registrations of new passenger cars surged by 5.9% in the first half of 2025 compared to the same period in 2024. This growth was primarily driven by a strong 36.8% increase in cars with alternative drive systems, including a 42.2% rise in purely electric vehicles and over 40% increase in petrol-hybrids.
Across the Atlantic, the United States witnessed a modest uptick in July 2025 auto sales. New light vehicle volume was projected at 1.33 million units, a slight increase over recent months, partly fueled by demand ahead of the impending expiration of federal EV incentives. On a year-to-date basis in July, new vehicle registrations rose 3.7%, with July itself seeing a 4.3% increase compared to July 2024.
However, the broader European market saw a slight contraction. European new passenger vehicle registrations declined by 4.4% year-on-year in June 2025, and total registrations across the EU-28 for the first half of 2025 fell 0.3% compared to the same period in 2024. This contraction was influenced by high prices, geopolitical tensions, and lingering post-pandemic effects, despite a 15% rise in all-electric car sales and a 40% increase in plug-in hybrid sales within Europe.
Notable declines were observed in countries like Italy, Belgium, Germany, France, and Romania.
Vítor Andrade, the Economics Coordinator, analysed these trends. His role specifically involves coordinating economic analysis within the sector. The statistical picture for 2025 suggests continued growth in markets like Austria and the US, especially driven by alternative and electric vehicles, while the European market faces some downturn in total registrations amid economic pressures. This points to a global shift with new vehicle growth concentrated largely in electrified powertrains and policy-driven markets, even as broader economic conditions temper volume growth in some regions.
Additional US data indicates that over the five years through 2025, motor vehicle registrations have grown steadily at about 1.3% annually, reflecting ongoing demand amid economic challenges and population growth.
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- The finance industry might observe increased investment opportunities in the automotive sector, particularly in markets like Austria and the US, with their growing trend in alternative and electric vehicles.
- The transportation industry could face challenges in meeting demand for electric vehicles in regions such as Europe, given the growth in electric and hybrid car sales and the simultaneous contraction in total registrations, potentially due to high prices, geopolitical tensions, and post-pandemic effects.
