Two-thirds of PVs Sold in Europe in Q1 2025 Came With ADAS; Chinese OEMs Democratizing Market

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Jun 13, 2025
  • ADAS penetration in Europe PV sales reached 67% in Q1 2025, with Level 2 autonomy now common in mid-to-high-end vehicles.
  • Chinese OEMs are disrupting the market by offering L1/L2 as standard or low-cost options.
  • Germany leads in Level 3 deployment, but high costs and limited usability restrict adoption to under 0.5% of new vehicle sales.


London, Beijing, Buenos Aires, Fort Collins, Hong Kong, New Delhi, Seoul, Taipei, Tokyo – June 13, 2025

Driven by rising consumer demand for enhanced safety and convenience features, and new EU safety norms, Europe ’s ADAS-equipped passenger vehicle sales rose by 7% YoY in Q1 2025 to take a 67% share of the overall passenger vehicle sales in the continent, according to Counterpoint Research’s Europe Autonomous Vehicle Tracker , Q1 2025. This 67% figure includes sales of new cars equipped with either Level 1 or Level 2 ADAS systems. Level 2 autonomy has become ubiquitous in mid-to-high-end vehicles, achieving 38% sales penetration in Q1 2025, compared to 33% in Q1 2024. BMW and Mercedes-Benz are pushing the envelope by offering Level 3 autonomy in Germany.

Senior Analyst Murtuza Ali said, “Rising regulatory mandates combined with consumer appetite for smarter safety systems have accelerated ADAS rollout. OEMs are now offering Level 1 and Level 2 ADAS as foundational features across premium and upper-mid segments.”

Diverging OEM strategies: Legacy vs New entrants

Legacy European automakers continue to adopt a tiered ADAS strategy, with OEMs like Mercedes-Benz, BMW and Volkswagen offering basic L1/L2 features (lane keep assist, adaptive cruise) as standard typically on higher trims, or as options bundled into technology packages for which consumers have to pay more.

In contrast, relatively new Chinese entrants like BYD, NIO, Xpeng and Leapmotor are reshaping expectations by offering advanced ADAS and partial autonomy as standard or low-cost options across broader lineups. For example, In Q1 2025, NIO and Xpeng delivered vehicles in Germany and the Netherlands with the L1/L2 autonomy level as standard, even on mid-range trims. “Chinese OEMs are democratizing access to ADAS while compelling legacy brands to overhaul their bundling and pricing strategies,” said Senior Analyst Mohit Sharma.

Germany: Leading in L3 autonomy but missing significant volumes

Germany stands as the European frontrunner in L3 deployment, thanks to early regulatory clarity and strategic OEM investment. Mercedes-Benz with its S-Class and EQS models and BMW with its 7 series models currently remain the only automakers selling a certified Level 3 system. Yet, adoption remains constrained, with less than 0.5% of new vehicles sold in Germany in Q1 2025 being L3 capable. This can be attributed to the high cost of the option (around €6,000) and limited operational design domains (ODDs) – maximum speed of 95 km/h and on highways only

Outlook

Europe’s ADAS landscape in 2025 reflects a dual trajectory of incremental, premium-first autonomy from legacy brands versus a rapid rollout and democratization of feature-rich autonomy by new Chinese players. While Germany has laid the regulatory and technological groundwork for true L3 autonomy, broader European adoption of L3 will require lowering the cost of technology, a pan-European policy alignment, and an increase in public trust in automation.

The comprehensive and in-depth ‘Counterpoint Research Europe Autonomous Vehicle Tracker, Q1 2025’ is now available for purchase at report.counterpointresearch.com
Feel free to reach us at press@counterpointresearch.com for questions regarding our latest research and insights.

Background

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Summary

Published

Jun 13, 2025

Author

Mohit Sharma

Mohit is a seasoned Research Analyst at Counterpoint Technology Market Research, specializing in the Automotive Industry and its transformative megatrends, including Connectivity, Autonomous Vehicles, Electric Vehicles, Shared Mobility, and Location Technology. His academic foundation as a Mechanical Engineer is complemented by a Master's degree from EBS University in Germany, where he collaborated with leading automotive OEMs such as Kia and Daimler.