The European car market is showing early signs of stabilization in 2026, despite a slow start to the year. New EU car registrations declined by 1.2% year-to-date (YTD) through February, an improvement compared to the sharper drop recorded in January.

While overall volumes remain under pressure, electrified vehicles continue to gain ground—highlighting the ongoing shift toward cleaner mobility across the region.

EV Market Share Climbs to 18.8%

Battery-electric vehicles (BEVs) continue their upward trajectory, capturing 18.8% of the EU market in the first two months of 2026. That marks a notable increase from 15.2% during the same period last year.

A total of 312,369 electric cars were registered across the EU, though performance varied across key markets:

– France led growth with a strong +38.5% increase
– Germany followed with +26.3% growth
– Belgium saw a decline of -11%
– The Netherlands dropped sharply by -34.9%

Despite regional inconsistencies, the broader trend confirms that demand for fully electric vehicles remains robust.

Hybrids Remain Europe’s Top Choice

Hybrid-electric vehicles continue to dominate the EU market, accounting for 38.7% of total registrations—making them the most popular powertrain among European buyers.

Registrations reached 643,898 units, supported by solid growth in southern markets:

– Italy surged by +29.5%
– Spain rose by +13.4%
– Germany remained stable at +1.1%
– France experienced a slight decline of -3.9%

Hybrids are benefiting from their flexibility, offering improved efficiency without relying entirely on charging infrastructure—an important factor for many consumers.

Plug-in Hybrids Gain Momentum

Plug-in hybrid electric vehicles (PHEVs) are also gaining traction, with registrations climbing to 162,751 units in January–February 2026.

This pushed their market share to 9.8%, up from 7.4% a year earlier.

Key growth drivers include:

– Italy: +116.1%
– Spain: +71.5%
– Germany: +23.8%

The surge reflects growing consumer interest in transitional electrification technologies that combine electric driving with traditional range capabilities.

Petrol and Diesel Continue to Decline

Internal combustion engine (ICE) vehicles are losing ground rapidly across Europe.

Petrol car registrations fell by 23.3% YTD, with sharp declines in all major markets:

– France: -48.5%
– Germany: -22.8%
– Spain: -20.8%
– Italy: -18.6%

Petrol’s market share dropped to 22.5%, down from 29% last year.

Diesel vehicles followed a similar path, with registrations decreasing by 17.7%, now accounting for just 8.1% of the market.

A Technology-Neutral Transition

The latest data underscores a key trend in Europe’s automotive transition: diversification of electrified powertrains. While fully electric vehicles are gaining momentum, hybrids and plug-in hybrids remain essential in bridging the gap toward full electrification.

As infrastructure expands and regulations tighten, the balance between these technologies will likely continue evolving—but for now, hybrids remain firmly in the driver’s seat.

[source:ACEA]

Blagojce Krivevski