New car registrations across the European Union rose by 4% in the first quarter of 2026, with growth largely driven by a strong performance in March. The market was supported by sustained consumer demand, underpinned by new and revised tax incentives and support schemes introduced across several major European countries, acording ACEA.

The overall increase, however, masks a rapidly accelerating shift in the composition of new car sales, with electrified powertrains continuing to gain ground at the expense of traditional combustion engines.

Battery-electric vehicles were the standout performer in the quarter. New registrations reached 546,937 units, giving them a 19.4% share of the EU market, up significantly from 15.2% a year earlier. Growth was particularly strong in Italy (+65.7%), France (+50.4%) and Germany (+41.3%), while Belgium recorded a slight decline (-2.3%).

Hybrid-electric vehicles remained the most popular choice among European consumers, accounting for 38.6% of all new registrations. This segment also expanded in volume to 1,089,421 units, with notable growth in Italy (+25.8%) and Spain (+18.5%), alongside steady increases in Germany (+7.4%) and France (+3.1%).

Plug-in hybrid vehicles also continued their upward trajectory, with registrations rising to 268,344 units in Q1 2026. This growth was driven by sharp increases in key markets, including Italy (+110.1%), Spain (+74.2%) and Germany (+19.3%). Their overall market share rose to 9.5%, compared with 7.6% in the same period last year.

By contrast, conventional internal combustion engine vehicles continued to lose ground. Petrol car registrations fell by 18.2%, with declines across all major markets, including a sharp 40.3% drop in France. Petrol vehicles now account for 22.6% of the market, down from 28.7% a year earlier.

Diesel continued its structural decline as well, with registrations down 15.7%, representing just 7.7% of total new car sales in the quarter.

Taken together, the data highlight a European automotive market that is not only growing again, but also undergoing a clear and sustained transition towards electrification, led by hybrids in the short term and battery-electric vehicles expanding their footprint at pace.