Economic Buzz: New EU car registrations increase by 4% in Q1 2026

European Automobile Manufacturers’ Association, or ACEA stated that in Q1 2026, new EU car registrations increased by 4%, driven largely by March’s strong performance. The market was supported by robust consumer activity bolstered by new and revised tax benefits and incentive schemes across major European countries – see further details in Electric cars: Tax benefits and incentives (2026). Hybrid-electric vehicles lead as the most popular power type choice among buyers, while the battery-electric car market share reached 19.4%.

Meanwhile, plug-in hybrids continued to strengthen their position, underlining the importance of a technology-neutral pathway to decarbonisation. Battery-electric cars accounted for 19.4% of the EU market share in Q1 2026, an increase from 15.2% one year earlier. Hybrid-electric car registrations captured 38.6% of the market, remaining the preferred choice among consumers in the EU. Moreover, the combined market share of petrol and diesel cars fell to 30.3%, down from 38.2% in Q1 2025.

Powered by Commodity Insights