CommunityFinance Connect Podcast: Bernie Margulies on the risks and opportunities of financing the AI boom
CommunityFinance Connect Podcast: Bernie Margulies on the risks and opportunities of financing the AI boom
Auto Finance Sponsored by Auto Finance Market Data EU car registrations rise 5.7% as EV demand grows Published: 22nd October 2026 Share New passenger car registrations across the European Union increased by 5.7% during the first nine months of 2026, with battery-electric vehicles (BEVs) accounting for 22.7% of the market, according to the latest figures from the European Automobile Manufacturers’ Association (ACEA). The growth comes despite challenging economic conditions, including rising energy prices and geopolitical uncertainty, with demand for electrified vehicles continuing to strengthen across major European markets. Hybrid-electric vehicles remained the most popular powertrain choice among EU consumers, accounting for 36.3% of new registrations, while battery-electric vehicles overtook petrol cars to become the second-largest segment. The combined market share of petrol and diesel vehicles fell to 28.2%, down from 36.9% during the same period in 2025, highlighting the continued shift towards electrified powertrains. Battery-electric registrations continue to accelerate A total of 1,931,465 new battery-electric cars were registered across the EU between January and September 2026, increasing their market share from 16.1% a year earlier to 22.7%. Three major European markets recorded particularly strong growth in BEV registrations, led by France (+79.1%), Germany (+58.1%) and Denmark (+40.3%). Belgium also reported an increase of 15.7%. ACEA attributed continued demand for electrified vehicles to buyer support measures and a broader range of models becoming available. Hybrid-electric vehicles maintained their leading position, with 3,090,530 registrations during the first nine months of the year. Growth was particularly strong in Italy (+20.8%) and Spain (+20.5%), while Germany (+4.9%) and France (+0.6%) recorded more modest increases. Plug-in hybrid electric vehicles (PHEVs) also gained market share, with registrations reaching 860,257 units between January and September. PHEVs accounted for 10.1% of new EU car registrations, up from 9% a year earlier, supported by growth in Italy (+72.4%), Spain (+34.7%) and Germany (+13.7%). Petrol and diesel registrations continue to decline The latest figures reveal a further contraction in demand for traditional combustion-engine vehicles. Petrol car registrations declined by 19.1% during the first nine months of 2026, with significant falls recorded across all major EU markets. France experienced the sharpest reduction, with petrol registrations down 36.1%, followed by Germany (-22.7%), Spain (-19%) and Italy (-16.4%). A total of 1,802,078 petrol cars were registered during the period, reducing their market share to 21.2%, compared with 27.7% a year earlier. Diesel registrations also continued to fall, declining by 19.5% year-on-year. Diesel vehicles accounted for just 7.1% of new EU car registrations, down from 9.3% in the first nine months of 2025. The latest ACEA figures underline the changing composition of Europe’s new car market, with electrified vehicles accounting for an increasing proportion of registrations as demand for petrol and diesel models continues to weaken. Lisa Laverick Editor - Finance Connect Sign up to our newsletter Featured Stories Market DataStellantis and Leapmotor registrations exceed two million in Europe Market DataUsed EV buyers favour 300-mile range, dealers report Market DataEU car trade surplus falls 34% as Chinese imports surge, ACEA reports Auto Finance