Europe car sales edge up in February; Tesla ends year-long decline

New car sales in Europe rose in February after a decline in January, with registrations across the EU, Britain and the European Free Trade Association increasing 1.7% to 979,321 units, data from the European auto lobby ACEA showed on Tuesday. Demand for electric vehicles also helped Tesla return to growth for the first time since December 2024.

Electrified vehicles, including battery-electric, plug-in hybrid and hybrid models, accounted for about two-thirds of total registrations. Sales of these categories in the EU rose 20.6%, 32.1% and 10.1%, respectively, taking their combined share to 67%, up from 58.5% a year earlier. Growth has been supported by more affordable models and government incentives, even as regulators in the EU and Britain ease some emissions rules following pressure from carmakers facing profitability challenges and rising competition from Chinese manufacturers.

Tesla’s registrations increased 11.8% year-on-year in February, ending a 13-month decline, though volumes remained slightly below those of China’s BYD, whose sales more than doubled. Both brands held a 1.8% market share during the month. Among European carmakers, Volkswagen and Stellantis reported sales growth of 2.2% and 9.5%, respectively, while Renault recorded a 14.3% decline. In the EU alone, registrations rose 1.4% to 865,437 vehicles.