EU new car demand rises as BEVs grab bigger slice of market

New car registrations in the European Union climbed 3.2% year-on-year to 955,013 units in May, according to ACEA data. Year-to-date demand increased 4% to just under 4.75 million units, signaling a strong start to 2026 despite ongoing geopolitical headwinds. The uptick was driven by strong consumer appetite for electrified powertrains, supported by new and revised tax incentives across major EU markets. Hybrid-electric vehicles remained the most popular choice, capturing 37.8% of the market, while battery-electric cars accounted for one in five registrations. Over the first five months, BEVs held a 20% market share, up from 15.3% in the same period last year. The combined share of petrol and diesel cars fell to 30.1%, down from 38% previously.