AutoWallis operates in Central and Eastern Europe, which is why their industry analysis focuses primarily on this region. The company is present in 17 countries (Austria, Albania, Bosnia and Herzegovina, Bulgaria, the Czech Republic, North Macedonia, Greece, Croatia, Kosovo, Poland, Hungary, Moldova, Montenegro, Romania, Serbia, Slovenia, and Slovakia) with wholesale and retail operations for vehicles and parts, as well as mobility services, representing 30 brands and boasting over three decades of automotive industry experience. AutoWallis’ growth strategy therefore focuses on this region, as it is in this environment with high growth potential that the group’s experts possess knowledge and value-creating capabilities that surpass those of its competitors.
The CEE Automotive Report 2025 provides a comprehensive overview of the state of the region’s automotive markets in 2025 and their growth potential for the coming period. In addition to a country-by-country breakdown, the report examines the market share of various powertrains (ICE, BEV, PHEV, HEV, etc.), analyzes the regional passenger car and light commercial vehicle fleets, and forecasts the expected trends in the automotive market for 2026. In compiling the report, in addition to the ACEA database, data from Datahouse, the European Commission, and the Hungarian Central Statistical Office (KSH) were used to conduct a detailed analysis of neighboring markets to create the most comprehensive regional overview possible.
The share of electric powertrains among new cars continued to grow
In terms of new passenger car registrations, countries in the CEE region saw a 7.7% increase, compared to the EU average of 1.8%. Within the region, Austria had the highest growth rate (12.3%), but the performance of the Slovenian (8.6%) and Polish (8.3%) markets was also notable. Slovakia was the only country in the region to record a decline (-0.3%). Of the 27 EU member states, 19 markets showed a positive trend compared to 2024, although the volume varies significantly by country.
At the same time, registrations of battery electric passenger cars (BEVs) increased by an average of 29.7% in Europe in 2025, with the European Union showing a 29.9% increase. Looking at the CEE region average, registrations of pure electric cars significantly exceed even the EU’s average growth rate (53.3%). Poland achieved the highest growth in electric vehicles in 2025, registering more than two and a half times as many such passenger cars (161.5%).
Battery electric vehicles (BEVs) remained the third most popular choice among buyers in the EU in 2025, behind hybrids and gasoline-powered cars. In the CEE region, hybrid-electric vehicles are also the most popular (37.8%), closely followed by gasoline-powered cars (33.7%). Unlike in the EU, fully electric cars are the fourth most popular (9.1%), trailing diesel vehicles (11%), according to an analysis by AutoWallis.
The Hungarian market offers a wealth of opportunities
The 4.2 million passenger cars on Hungarian roads represent the second-oldest fleet in the EU (16.5 years), and the number of cars per 1,000 inhabitants is the second lowest in the EU (445). Similar to passenger cars, the average age of light commercial vehicles (521,000 units) is also high (13.2 years), which highlights the lag in the business sector.
In 2025, the Hungarian passenger car market performed between the EU and regional averages: a 6.4% increase compared to the previous year translates to 129,000 newly registered cars. Lagging behind the EU’s 17.4% figure, the share of electric cars was 8.5%, nearly matching the CEE region’s average. Although electric car sales increased compared to the previous year (28.5%), the rate of growth remained below the EU average. Registrations of light commercial vehicles decreased by 4.5% (23,700 units), while registrations of purely electric vehicles within this segment increased by 60.1%.
2026 will be no less turbulent: ongoing (tariff) wars, unstable supply chains, government subsidies
The direct and indirect effects of escalating international conflicts, various protective tariffs and sanctions affecting major raw material-supplying countries, as well as the impact of major international routes (commercial shipping, air corridors) pose significant challenges on their own, but their combined presence makes economic planning more difficult globally, including in Europe.
The automotive industry remains heavily dependent on Chinese battery materials, Asian chip manufacturers, and global logistics routes. Geopolitical tensions (US-China, EU-China, Middle East) could disrupt production at any time. Soaring oil prices due to the war in Iran, as well as uncertain and increasingly expensive transportation (in terms of both cost and time), are expected to drive up costs for automakers (OEMs), which will manifest in even higher new car prices and general inflationary pressure. AutoWallis expects manufacturers to respond to these bottlenecks by focusing on higher-margin models, while in the longer term, they may accelerate the development of regionalized production and warehousing.
Growing market pressure and China’s continued expansion
While European manufacturers, who have fallen behind in both capacity and development and are under market pressure, China has been the world’s largest auto exporter since 2023. At the same time, Europe is one of the world’s most profitable car markets, with high purchasing power and strong demand for EVs. It is no wonder that Europe has become an extremely attractive and important target for Chinese OEMs, and a central element of China’s export strategy. Despite the EU launching an anti-subsidy investigation and imposing punitive tariffs on Chinese EVs, manufacturers have remained competitive, and exporting to Europe remains profitable even with the tariffs. Chinese manufacturers are particularly strong in the electric vehicle sector; according to the consensus among analysts, they have a competitive advantage of approximately 3–5 years in the field of electrification. At the same time, the segment of plug-in hybrids with extra-long range is gaining ground, as there are currently no additional tariffs on plug-in hybrid (PHEV) models, unlike on battery electric vehicles (BEVs) and extended-range electric vehicles (EREVs).
However, Europe is important to Chinese manufacturers not only because of its sales potential, but also as a valuable benchmark: if a model meets the EU’s notoriously strict safety and environmental standards, it lends strong credibility to the brand globally, including in their other export markets. Success in Europe is key to their global ambitions. Among the major Chinese brands, only a few are currently strong in Europe, but numerous other manufacturers are planning a vigorous market offensive over the next 12 months. We can therefore expect Chinese models to continue gaining ground in the European market, with the emergence of dedicated “budget EV” models – similar to the Japanese kei-car concept.
