The European Union’s new-car market made a solid start to 2026, with registrations increasing 4% between January and May compared with the same period last year.

Data from the European Automobile Manufacturers’ Association showed that demand remained resilient despite wider economic uncertainty, with electrified vehicles accounting for a growing share of purchases.

<h3>Hybrids Remain The Most Popular Choice</h3>

Hybrid-electric vehicles continued to dominate the EU market during the first five months of the year.

Almost 1.8 million hybrid cars were registered between January and May, giving them a 37.8% market share. Growth was particularly strong in several major markets. Registrations rose 24.5% in Italy, 19.5% in Spain, 5.4% in Germany and 2.2% in France.

The figures show that conventional hybrids remain an important choice for buyers who want lower fuel consumption and some level of electrification without relying entirely on charging infrastructure.

<h3>Plug-In Hybrids Gain Ground</h3>

Plug-in hybrid registrations also increased significantly.

Around 460,000 new PHEVs were registered across the EU during the period, accounting for 9.7% of the total market. That was higher than the 8.3% share recorded during the same five months of 2025.

Italy posted the strongest increase among the major markets, with plug-in hybrid registrations rising 84.9%. Spain followed with growth of 46.5%, while Germany recorded a 16.1% increase.

The results suggest that plug-in hybrids are continuing to attract buyers who want electric driving capability while retaining the flexibility of a combustion engine for longer journeys.

<h3>Battery-Electric Cars Reach 20% Share</h3>

Battery-electric vehicles also continued to expand.

A total of 950,521 new electric cars were registered in the EU from January through May, representing 20% of the market.

According to ACEA, demand was supported by revised tax benefits and incentive programmes in several European countries.

Three of the four largest EU electric-car markets posted strong growth. Registrations increased 75.7% in Italy, 55.4% in France and 40.9% in Germany.

These markets together represented a large share of overall EV registrations, making their performance particularly important for the wider European transition towards electric mobility.

<h3>Petrol Cars Continue To Lose Market Share</h3>

While electrified vehicles expanded, petrol-powered cars continued to decline. Registrations of petrol models fell 18.2% during the first five months of 2026. France recorded the sharpest drop at 36.8%, followed by Spain at 20.3%, Germany at 18.5% and Italy at 17.3%.

A total of 1,065,071 petrol cars were registered during the period. Their market share fell to 22.4%, compared with 28.5% a year earlier.

Diesel sales also continued to decline, although at a slightly slower rate. Registrations fell 16.6%, leaving diesel with a 7.6% share of the EU market, down from 9.5% in the same period of 2025.

<h3>Combustion Engines Fall To 30.1%</h3

Taken together, petrol and diesel cars accounted for 30.1% of new EU registrations between January and May, a significant decline from 38% one year earlier.

ACEA said the 4% overall market increase reflected a strong opening to 2026 despite persistent headwinds.

The latest figures underline how quickly the balance of the European car market is changing. Hybrids remain the leading powertrain, battery-electric vehicles continue to gain share, and traditional petrol and diesel cars are becoming a progressively smaller part of new-car sales.