EU car market grows 4% in Q1 as EVs gain ground

New car registrations across the European Union rose by 4% in the first quarter of 2026, as demand picked up sharply in March and electric vehicles continued to capture a growing share of the market.

According to the latest figures from the European Automobile Manufacturers’ Association (ACEA), the increase was driven in part by strong consumer activity supported by updated tax incentives and subsidy schemes introduced across several major European economies.

Battery-electric vehicles (BEVs) were a key driver of that growth, accounting for 19.4% of all new registrations in Q1 – up significantly from 15.2% during the same period last year. A total of 546,937 electric cars were registered across the bloc in the first three months of 2026.

Performance varied among the EU’s largest markets, which together make up more than 60% of electric vehicle sales. Italy posted the strongest growth, with registrations surging by 65.7%, followed by France (+50.4%) and Germany (+41.3%). Belgium, however, recorded a slight decline of 2.3%.

Hybrid-electric vehicles retained their position as the most popular choice among European consumers. Registrations rose to 1,089,421 units, giving hybrids a dominant 38.6% market share. Growth was particularly strong in Italy (+25.8%) and Spain (+18.5%), with more modest gains in Germany (+7.4%) and France (+3.1%).

Plug-in hybrid vehicles also continued their upward trajectory. Registrations reached 268,344 units in Q1, lifting their market share to 9.5%, up from 7.6% a year earlier. Italy again led the growth, more than doubling registrations (+110.1%), while Spain (+74.2%) and Germany (+19.3%) also recorded significant increases.

Together, electrified vehicles – including fully electric, hybrid, and plug-in hybrid models – now dominate the EU market, as policymakers and consumers increasingly align around lower-emission transport options.

By contrast, traditional internal combustion engine vehicles continued to lose ground. Petrol car registrations dropped by 18.2% across the EU, with sharp declines in all major markets. France saw the steepest fall, down 40.3%, while Italy (-18.6%), Spain (-18.1%), and Germany (-16.1%) also recorded substantial decreases.

Petrol vehicles accounted for 22.6% of new registrations in Q1, down from 28.7% a year earlier. Diesel cars followed a similar downward trend, with registrations falling by 15.7% and their market share slipping to just 7.7%.

Overall, the combined share of petrol and diesel vehicles fell to 30.3%, a steep decline from 38.2% in the first quarter of 2025, underscoring the accelerating shift toward electrified mobility across Europe.

Industry analysts say the latest figures reinforce the importance of a “technology-neutral” approach to decarbonisation, with hybrids and plug-in hybrids continuing to play a crucial transitional role alongside fully electric vehicles.

With policy support strengthening and consumer demand holding firm, the EU car market appears to be steadily moving toward a lower-emission future, even as economic uncertainties persist.