Europe’s car market picks up slightly in May

Europes car market picked up slightly in May, as robust demand for electric and hybrid vehicles helped offset the drag from global trade tensions. According to ACEA, new-car registrations in Europe rose 1.9% y/y in May. However, since the beginning of the year, new EU car registrations fell by 0.6% in Europe. In the region, car registrations declined since the beginning of the year in Romania and in Slovakia only. In Slovakia, such development is driven to some extent by the changes in the VAT tax introduced in January. However, new car registrations in Slovakia during May rose by almost 5%, while in Romania decline was quite substantial. Other CEE countries experience growth in car registrations throughout 2025 that we see as a positive signal regarding economic outlook.