EU car market slips in early 2026 as electric share climbs to nearly one-fifth

New car registrations across the EU edged down by 1.2% in the first two months of 2026, according to the European Automobile Manufacturers’ Association (ACEA), reflecting a subdued start to the year despite improving momentum compared to January.

However, the latest figures highlight a continued structural shift in the market, with battery-electric vehicles (BEVs) capturing a growing share of new registrations.

Between January and February 2026, battery-electric cars accounted for 18.8% of total EU registrations, up significantly from 15.2% in the same period last year. A total of 312,369 BEVs were registered, underlining sustained demand for zero-emission vehicles.

Performance across key markets was mixed. France (+38.5%) and Germany (+26.3%) recorded strong growth, while Belgium (-11%) and the Netherlands (-34.9%) saw notable declines.

Hybrid-electric vehicles remained the dominant powertrain, accounting for 38.7% of the market with 643,898 registrations. Growth was driven by Italy (+29.5%) and Spain (+13.4%), while Germany remained broadly stable (+1.1%). France, however, posted a slight decline (-3.9%).

Plug-in hybrid vehicles (PHEVs) also strengthened their position, with registrations rising to 162,751 units. Their market share increased to 9.8%, up from 7.4% a year earlier, supported by strong growth in Italy (+116.1%), Spain (+71.5%), and Germany (+23.8%).

Together, the figures point to a broad-based shift towards electrified vehicles, with hybrid and plug-in hybrid models continuing to act as a bridge in the transition to fully electric mobility.

Traditional internal combustion engine vehicles continued to lose ground. Petrol car registrations fell sharply by 23.3% year-to-date, with all major EU markets reporting declines. France saw the steepest drop at -48.5%, followed by Germany (-22.8%), Spain (-20.8%), and Italy (-18.6%).

Petrol vehicles accounted for 22.5% of the market, down from 29% a year earlier, with 374,774 units registered.

Diesel registrations also declined, falling by 17.7% and representing just 8.1% of new car registrations across the EU.

Combined, petrol and diesel vehicles now make up 30.6% of the market – down from 38.7% in early 2025 – highlighting the accelerating shift away from fossil fuel-powered cars.

While the overall market contraction reflects ongoing economic uncertainty and uneven demand across regions, ACEA’s data points to a clear long-term trend: electrification continues to gather pace.

The strong performance of hybrids and plug-in hybrids alongside rising BEV adoption suggests that a technology-diverse approach remains central to Europe’s transition towards lower-emission mobility.