EU Automotive Market Report: February 2025 YTD Analysis and Sustainable Development Goal (SDG) Implications

Overall Market Performance and Progress Towards SDG 13 (Climate Action)

• In the year-to-date (YTD) period ending February 2025, new car registrations in the European Union experienced a 3% decline compared to the same period in 2024.
• Key national markets reported contractions, including Italy (-6%), Germany (-4.6%), and France (-3.3%), while Spain recorded an 8.4% increase.
• Despite the overall market downturn, the data indicates a significant powertrain transition, reflecting progress towards SDG 13 (Climate Action) through the decarbonisation of transport.

Transition to Low-Emission Mobility: A Boost for SDG 7, 11, and 13

The market continues its structural shift towards electrified vehicles, a critical step in achieving SDG 7 (Affordable and Clean Energy) and SDG 11 (Sustainable Cities and Communities) by reducing reliance on fossil fuels and improving urban air quality.

Battery-Electric Vehicles (BEVs)

• New BEV registrations grew by 28.4% in the first two months of 2025, totalling 255,489 units.
• The market share for BEVs expanded to 15.2%, a notable increase from 11.5% in the corresponding period of 2024, directly supporting climate action targets.
• Robust double-digit growth in three of the four largest EU markets—Germany (+41%), Belgium (+38%), and the Netherlands (+25%)—highlights accelerating adoption of zero-emission technology.

Hybrid-Electric Vehicles (HEVs)

• HEV registrations rose by 18.7%, with 594,059 units sold, solidifying their position as the preferred powertrain with a 35.2% market share.
• Strong growth in France (+51.4%), Spain (+31.5%), Italy (+10.4%), and Germany (+9.8%) demonstrates the crucial role of hybrid technology in the transition to more sustainable transport systems.

Plug-in Hybrid Electric Vehicles (PHEVs)

• Registrations for PHEVs declined by 5% to 124,947 units, representing 7.4% of total car registrations.
• This decrease was primarily influenced by significant reductions in key markets such as Belgium (-65.3%) and France (-49.3%).

Phasing Out Fossil Fuels: Aligning with SDG 12 (Responsible Consumption)

A marked decline in demand for petrol and diesel cars signifies a shift in consumer behaviour towards more sustainable options, in line with the principles of SDG 12 (Responsible Consumption and Production).

Petrol and Diesel Vehicle Registrations

• The combined market share for petrol and diesel cars contracted to 38.8% by February 2025 YTD, down from 48.5% in the previous year.
• Petrol car registrations fell by 20.5% to 489,838 units, with significant decreases in France (-27.5%) and Germany (-24.9%). The market share for petrol vehicles now stands at 29.1%.
• The diesel market experienced a more pronounced decline of 28%, reducing its market share to 9.7%. This trend contributes directly to improved public health and environmental quality in urban centres, a key objective of SDG 11.

1. Which SDGs are addressed or connected to the issues highlighted in the article?

The article’s focus on the shift in the European Union’s car market from traditional petrol and diesel vehicles to electric and hybrid models connects to several Sustainable Development Goals (SDGs). The primary SDGs addressed are:

• SDG 7: Affordable and Clean Energy: The transition towards battery-electric vehicles (BEVs) and hybrid-electric vehicles represents a shift in the transport sector towards cleaner energy sources, moving away from fossil fuels.
• SDG 11: Sustainable Cities and Communities: The decline in petrol and diesel car registrations directly contributes to improving urban air quality, a key component of making cities more sustainable and healthier for inhabitants.
• SDG 13: Climate Action: The move away from internal combustion engines is a significant climate change mitigation strategy. Reducing the number of petrol and diesel cars helps to lower greenhouse gas emissions from the transport sector.

2. What specific targets under those SDGs can be identified based on the article’s content?

Based on the article’s data on vehicle registrations, the following specific SDG targets can be identified:

• SDG 7: Affordable and Clean Energy

  • Target 7.2: By 2030, increase substantially the share of renewable energy in the global energy mix. The article shows a clear trend towards electrification in the transport sector, with battery-electric vehicles accounting for “15.2% of total EU market share” and hybrid-electric vehicles capturing “35.2% of the market.” This shift is a prerequisite for powering transportation with renewable energy sources.

• SDG 11: Sustainable Cities and Communities

  • Target 11.6: By 2030, reduce the adverse per capita environmental impact of cities, including by paying special attention to air quality. The significant decline in registrations of polluting vehicles, such as petrol cars (“a significant decline of 20.5%”) and diesel cars (“the diesel car market declined by 28%”), directly supports this target by reducing a major source of urban air pollution.

• SDG 13: Climate Action

  • Target 13.2: Integrate climate change measures into national policies, strategies and planning. The market trends described, such as the “robust double-digit gains” for BEVs in major markets like Germany (+41%), are outcomes of policies designed to decarbonize the transport sector and combat climate change. The falling combined market share of petrol and diesel cars, from “48.5% in 2024” to “38.8%”, reflects the impact of these climate-focused strategies.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

Yes, the article is rich with quantitative data that can serve as direct indicators for measuring progress towards the identified targets.

• Indicators for SDG 7 & 13

  • Market Share of Clean Energy Vehicles: The article provides precise figures that can be used as indicators. For instance, the market share of battery-electric vehicles (BEVs) is “15.2%” and hybrid-electric vehicles is “35.2%.” The combined share of petrol and diesel has fallen to “38.8%.” These percentages directly measure the shift towards cleaner energy in the new vehicle fleet.
  • Growth Rate of Electric and Hybrid Vehicle Sales: The article notes that “new battery-electric car sales grew by 28.4%” and “new EU registrations of hybrid-electric cars rising by 18.7%.” These growth rates are key performance indicators of the pace of the energy transition in transport.

• Indicators for SDG 11

  • Decline in Sales of Polluting Vehicles: Progress in reducing the potential for urban air pollution can be measured by the decline in petrol and diesel car sales. The article provides specific indicators: “petrol car registrations saw a significant decline of 20.5%” and “the diesel car market declined by 28%.” These figures imply a future reduction in tailpipe emissions as the vehicle fleet is renewed.

4. Table of SDGs, Targets, and Indicators

Source: acea.auto