EU new car market grows 4% as BEVs reach 20% market share

New car registrations across the European Union increased by 4% in the first five months of 2026, with battery-electric vehicles (BEVs) now accounting for one in every five new cars sold, according to the latest figures from the European Automobile Manufacturers’ Association (ACEA).

The growth comes despite continuing geopolitical uncertainty, with consumer demand for electrified vehicles remaining strong across the region, supported by government incentives and favourable tax policies in several key markets.

Battery-electric vehicles captured a 20% share of the EU market in the year to date, up from 15.3% during the same period in 2025. A total of 950,521 new BEVs were registered between January and May.

Three of the EU’s four largest markets delivered particularly strong growth in electric vehicle registrations. Italy led the way with a 75.7% increase, followed by France at 55.4% and Germany at 40.9%. Belgium recorded more modest growth of 2.8%.

Hybrid-electric vehicles continued to dominate the market, accounting for 37.8% of all new registrations. Volumes rose to 1.8 million units in the first five months of the year, driven by strong performances in Italy, where registrations increased by 24.5%, and Spain, up 19.5%. Germany and France also reported positive growth of 5.4% and 2.2% respectively.

Plug-in hybrid electric vehicles (PHEVs) also continued their upward trajectory. Registrations rose to 460,217 units, giving the technology a 9.7% market share compared with 8.3% a year earlier. Italy again posted the strongest growth at 84.9%, while Spain and Germany recorded increases of 46.5% and 16.1% respectively.

Combined, electrified vehicles now account for more than two-thirds of new car registrations across the EU, underlining the pace of the region’s transition away from traditional internal combustion engine vehicles.

In contrast, demand for petrol and diesel cars continued to decline sharply.

Petrol registrations fell by 18.2% year-on-year, with all major markets reporting double-digit decreases. France saw the steepest fall at 36.8%, followed by Spain (-20.3%), Germany (-18.5%) and Italy (-17.3%).

A total of 1.07 million petrol cars were registered during the first five months of the year, reducing the fuel type’s market share from 28.5% to 22.4%.

Diesel registrations also remained in decline, falling by 16.6% year-on-year. Diesel vehicles accounted for just 7.6% of new registrations, down from 9.5% during the same period in 2025.

As a result, the combined market share of petrol and diesel vehicles fell to 30.1%, compared with 38% a year ago, highlighting the accelerating shift towards electrified powertrains across Europe’s new car market.