Name: Sluggish car market: Which EU countries are bucking the trend?
Uploaded: 2025-11-25T15:44:25.595Z
Duration: 1 min 30 s
Description: Some countries are experiencing a mini-boom in the automobile industry thanks to state incentives, despite modest consumer demand.

Some countries are experiencing a mini-boom in the automobile industry thanks to state incentives, despite modest consumer demand.

The European car market experienced minimal growth from January to September 2025, with new passenger car registrations increasing by just 1% compared to the same period in 2024. Sales declined in Belgium, France, and Italy, and remained stagnant in Germany, but Spain and Austria stood out with notable increases.

Spain's car market grew by 15%, attributed to an extended government incentive scheme supporting electric mobility and infrastructure. Austria also saw a 12% rise in car sales, largely fueled by corporate fleet purchases of electric vehicles, though this trend may be subject to change based on corporate buying cycles.

Sluggish car market: Which EU countries are bucking the trend?

Why is Spain's car market booming while others flounder? So far 2025 hasn't been the greatest year for the European car market. New passenger car registrations grew by a mere 1% between January and September, compared to the same period in 2024. A total of just more than 8.2 million vehicles were sold, but the picture varies significantly between countries. Sales dropped in Belgium, France, Italy and stagnated in Germany. While other markets have been struggling, Spain reported a remarkable 15% growth. One of the reasons is the new extension of a massive incentive scheme aimed at boosting electric mobility. The programme, now open till the end of 2025, has spent more than 1.3 billion euros in the past four years, not just for purchasing vehicles but also to install over 100,000 charging points across the country. Austria also recorded an impressive 12% increase in the first nine months of this year. However, the growth in fully electric vehicles was mostly fuelled by corporate fleets, making the trend potentially volatile depending on purchasing cycles.

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