On January 27th, reports indicated that in 2025, European auto sales experienced growth for the third consecutive year. This upswing was largely fueled by consumers' growing preference for more budget-friendly electric and hybrid vehicles. Data released by the European Automobile Manufacturers Association on Tuesday revealed that European auto sales witnessed a 7.6% increase in December, marking the sixth consecutive month of growth. New car registrations for the entire year climbed by 2.4%, reaching a total of 13.3 million units. Although this is a promising sign for an auto industry grappling with tariff pressures and intensified competition, sales figures are still roughly 15% lower compared to pre-pandemic levels. The resurgence of electric vehicle sales last year emerged as a pivotal factor driving overall market growth, with registrations of fully electric vehicles soaring by 30% and securing approximately one-fifth of the total market share. During the first half of 2025, consumer uncertainty, stemming from market turmoil and economic instability triggered by Trump's tariff policies, led to a cautious, wait-and-see approach among buyers. It was only in the second half of the year that consumers started returning to the market, as evidenced by the rebound in registrations. Analyst Gillian Davis forecasts that European auto sales are set to continue their upward trajectory this year, buoyed by the introduction of new subsidy programs and the launch of numerous next-generation vehicle models.