In 2025, Europe witnessed the registration of 13.3 million new cars, marking a 2.4% year-on-year increase. While December saw a rebound in sales, they still fell short of pre-pandemic levels by approximately 15%. The resurgence in sales was, in part, propelled by the recovery in electric vehicle (EV) sales. Specifically, registrations of battery electric vehicles (BEVs) soared by 30%, capturing roughly one-fifth of the total market share. Nevertheless, due to the insufficient charging infrastructure, hybrid models garnered more preference. Sales of plug-in hybrid electric vehicles (PHEVs) witnessed a 33% uptick. At the start of the year, Trump's tariff policies cast a shadow of uncertainty, prompting consumers to adopt a wait-and-see stance. However, market confidence gradually restored in the latter half of the year. Some companies expressed hope for policy support in the fuel vehicle market, and the European Commission proposed to ease the 2035 sales ban. Germany unveiled a €3 billion EV subsidy plan. Meanwhile, BYD's sales surged more than threefold, closing the gap with Tesla, whose registrations plummeted by 27%. Analysts predict that, buoyed by subsidies and new car introductions, European car sales are poised for continued growth this year, with Chinese brands potentially expanding their market footprint.