Segment: Remarketing

As UK new-car registrations increase, are BEV targets realistic?

The UK new-car market saw another month of registrations growth in May. But while battery-electric vehicles (BEVs) lead the way, are mandated targets becoming too optimistic? Autovista24 special content editor Phil Curry examines the numbers.

The UK’s new-car market saw another strong performance in May, as its run of growth extended into a sixth month.

The latest data from the SMMT shows 160,662 passenger cars joined the country’s roads in the month. This was a 7.1% increase year-on-year, equating to an additional 10,592 units based on Autovista24 calculations.

According to the SMMT, the growth was driven by a resurgence in private buyers. This segment of the market saw a 17.2% increase in deliveries, as customers responded to increasing competitive offers from a growing range of brands.

This led to a 6.4% rise in model choice year on year. Within this, the number of BEVs available between January and May increased by 25.6%. In May 2026, a total of 21 additional models received at least one registration compared with a year prior. In total, 31 new BEV models have received registrations across the first five months of the year.

Brands such as Aion, Changan, Chery, Chevrolet, Geely, Mitsubishi and Skywell all saw deliveries in May, with no registrations 12 months prior. The UK’s automotive market is diversifying, and this choice is likely helping to drive growth in the private sector.

Fleet demand grew more modestly, rising by 1.8%. The market still accounted for 57.1% of all registrations. The smaller business sector declined by 18.8%. However, this equated to a drop of just 720 units, according to Autovista24 calculations.

After five months of the year, the UK market stood 8.7% larger than it had at the same point in 2025. With 924,763 registrations, it is well on course to end the year up overall.

BEVs fly as targets remain distant

The UK market was buoyed by the performance of electric vehicles (EVs). Made up of BEVs and plug-in hybrids (PHEVs), the market saw a 30.5% uptick in registrations during May. With 66,098 deliveries, the sector achieved a 41.1% market share, up 7.4 percentage points (pp) year on year. This meant the gap between EVs and internal-combustion engine (ICE) models continued to narrow.

BEVs led the way in May, with the best growth of any powertrain . With 43,931 registrations in the month, they achieved a 34.2% jump year on year. This led to a 27.3% share of the monthly new-car total, a rise of 5.5pp. This was also the all-electric market’s biggest monthly share of 2026.

After five months, BEVs have seen registrations increase by 24.3% to 220,629 units. The powertrain’s momentum has ramped up throughout the year, following small increases in January and February. However, its 23.9% market share, while up 3pp, is still far below the 33% required by the zero-emission vehicle (ZEV) mandate.

So, it seems likely that a major intervention from carmakers or the government is needed to meet targets. According to forecast data published in March by EV Volumes, the UK will see 2,061,866 units registered in 2026. For BEVs to represent 33% of the market, the powertrain would need to see over 680,000 deliveries to customers across the 12 months of the year.

Therefore, almost 460,000 additional registrations are needed between June and December. Based on Autovista24 calculations of available SMMT data, in that period of last year, 295,861 BEVs were delivered. Therefore, across the seven-month period, the technology would need to see an increase of 55.4% in registrations.

Pressure builds on carmakers

Carmakers can use various flexibilities drawn into the legislation to help meet their own mandated targets. However, should the UK not meet the 33% share requirement overall, it would be the third successive year that targets have not aligned.

The SMMT highlighted that the widening gap between government expectations and consumer demand is increasing pressure on carmakers. Many of these are having to absorb the rising costs of compliance.

Adding to this pressure was the seventh Carbon Budget, recently published by the UK government. According to the Climate Change Committee, electric models will make up 95% of the UK’s new car and van sales by 2030. The committee reported that the falling cost of batteries will propel the move to electric. This would allow BEVs to reach price parity with comparable petrol and diesel cars between 2026 and 2028.

The SMMT highlighted that this is an ambition well beyond the ZEV mandate requirement of 80% for the car market, and 70% for light-commercial vehicles. The industry body also noted that achieving this share would require a tripling of EV demand in three years. They commented that this is highly unlikely under current outlooks.

‘If such targets are to be credible, then equally ambitious fiscal and investment support would be essential. A holistic review of the transition is urgently needed,’ stated the SMMT.

UK PHEV slowdown begins?

Although strong, registrations of PHEVs slowed in May. For the first time this year, the delivery increase came in under 40%. The 22,167-unit total equated to a 23.9% rise year on year. This was still good enough for a 13.8% market share, up 1.9pp compared to May 2025.

The performance between January and May meant that despite the slight slowdown, PHEVs have still seen a 41.8% increase in the five-month period. With 121,430 units delivered, the technology accounted for 13.1% of the overall market, a 3pp jump year on year.

Adding these figures to the BEV tally, EV numbers have improved by 30% in the first five months of 2026. The powertrain group accounted for 37% of the new-car market, a rise of 6.1pp compared to 12 months prior.

HEVs lose ground

The SMMT counts the hybrid market differently from other European automotive authorities. Mild hybrids (MHEVs) are merged with their respective petrol and diesel counterparts, leaving full hybrids (HEVs) as a standalone segment.

In May, HEVs achieved a minimal volume increase of 1.8%. According to Autovista24 calculations, this equated to an additional 368 units taking to UK roads.

The result meant that, in terms of market share, HEVs fell behind PHEVs for the second month in succession. Their 12.9% hold of the overall total was 0.7pp down year on year, as other powertrains saw greater improvement. The gap between the two hybrid types grew to 0.9pp, having sat at 0.6pp in April’s monthly figures.

HEVs have seen growth in every month of 2026. However, coming up against strong volumes from 2025 means a slower trajectory of improvement. Meanwhile, PHEVs are performing well, but against lower figures from last year.

This meant that after five months, HEVs have kept their lead against PHEVs. Volumes were up 7.2%, with 131,802 units. This was good enough for a 14.3% hold of the market, even though this was 0.2pp down year on year. The figure was also just 1.2pp up on the PHEV market share.

Adding HEVs into the EV figures, the electrified sector saw a 22.3% improvement in May. Its share of 54% meant it outpaced ICE for the third consecutive month. Between January and May, electrified registrations grew 22.7%, and held 51.2% of the UK market, up 5.8pp.

Petrol leads in the UK

Petrol continued to lead the UK market in May. Combined with MHEVs, the powertrain saw 66,223 registrations in the month. This was, however, a 7.1% decline compared to the same period last year.

The fuel type managed to secure 41.2% of the overall market in the month, a drop of 6.3pp. However, it remained the dominant technology, with a 13.9pp lead over BEVs.

In the first five months of the year, petrol has seen a slight decrease of 2.5% to 406,453 units. This equated to 10,358 fewer models taking to UK roads, according to Autovista24 analysis. Yet with a 44% share, it remained the leading choice with new-car buyers. This was down 5pp compared to five-month period in 2025.

It may take some time for other powertrains to topple the petrol market in the UK. Combined with MHEVs, it remains a formidable force. Yet the gap to BEVs, the second-best choice, has closed since January. In the first month of the year, it was a 27.1pp chasm. Between January and May, the gap was 20.1pp.

Meanwhile, diesel saw 7,622 deliveries in May, a drop of 2.2%. Its 4.7% share was 0.5pp down, as it remained the least-popular fuel type. After five months, diesel suffered a 7.4% decline in volumes to 44,449 registrations, with its 4.8% share down 0.8pp.

Combining the two powertrains, the ICE market fell 6.6% in May. The powertrain group’s 73,845 registrations equated to a 46% market share, down 6.7pp, as it lagged behind electrified totals.

After five months, ICE deliveries have dropped by 3%, with 450,905 registrations. This equated to a 48.8% market share, down by 5.8pp.

The Automotive Update: Residual value results and public EV chargers

How did residual values (RVs) perform across major European markets in May? How did this influence outlooks? Plus, where are public electric vehicle (EV) charging stations getting a boost? Autovista24 editor Tom Geggus talks through the data in the latest episode of the Automotive Update podcast.

Autovista24 journalist Tom Hooker appears in this week’s podcast episode to discuss value retention trends from seven European used-car markets. Drawing on expert insights, he outlines what to expect in the years ahead.

Then, an exploration of EV Volumes’ latest data on public EV charging infrastructure covering 75 different markets. The duo then considers how the pace of growth was directed by different countries.

Subscribe to the Autovista24 podcast and listen to previous episodes on Spotify, Apple and Amazon Music.

Automotive residual values

May’s Monthly Market Update reveals value declines as a percentage of retained list price (%RV) after 36 months and 60,000km. Meanwhile, new-car list prices rose year-on-year. This trend was recorded in the used-car markets of Austria, France, Germany, Italy, Spain, Switzerland and the UK.

Compared with May 2025, %RVs saw the greatest drop in Italy, where values fell by 3.7 percentage points (pp) to 44.4%. Meanwhile, the smallest decline was recorded in Austria, with a 0.7pp fall to 46.6%. Regional experts also forecast one of the smallest year-on-year drops by the end of 2026.

In contrast, the outlook for Italy foresees the steepest %RV descent of the seven recorded markets. But it is the only location where values are expected to increase once more by 2028. Most other markets expect to see marginal declines by that point.

Electric automotive infrastructure

Public EV charging infrastructure continued to record year-on-year growth in May, according to the latest data from EV Volumes. This details the number of locations a particular connector type can be found. This more accurately reflects the variety of chargers the public has access to.

While there was a year-on-year jump of 25.2% in the number of plug-in points, this confirmed a consistent slowdown. The pace at which new infrastructure has been installed has eased from 81.8% in May 2023.

Representing 83.1% of all charging locations recorded by EV Volumes, China has been a major driver of this result. Following a 110% year-on-year plug-in point expansion in May 2023, this rate decreased consistently to 28% in May 2026.

To put the country’s share into perspective, the next biggest infrastructure location was the Netherlands with a 2.7% share. Other leading locations from Europe included Germany, the UK and France.

More broadly, 524,923 stations were tallied by EV Volumes in Europe, up 15.7% year on year. Meanwhile, the US accounted for 1.8% of recorded plug-in points, with 88,050 locations. This equated to a growth of 7.7% compared with the previous May.

Is Spain’s new-car market suffering from EV incentive uncertainty?

A leading light in Europe’s new-car market landscape, Spain, witnessed a rare downturn in May. As electric vehicle (EV) incentives continue to be formalised, is there any cause for concern? Autovista24 content specialist James Roberts assesses the latest data.

Spain’s new-car market recorded a year-on-year decline in May, the first such fall since December 2025. However, the month’s data was compared with a particularly strong performance 12 months prior.

In total, 111,894 new vehicles took to Spanish roads last month. This marked a year-on-year decline of 0.8%, and a deficit of 926 units based on Autovista24 calculations of available Faconauto and ANFAC data.

Despite the relatively small drop in volumes, it is a shift from the sustained monthly improvements recently achieved. As a result, expected challenges could be coming to fruition.

Despite this, across the first five months of the year, the Spanish new-car market remained in positive territory. Overall, 519,283 new passenger cars reached customers according to ANFAC, up 5.8% year on year.

New EV incentive framework delays

Spain’s consistently strong new-car market has been aided by EV incentives. During 2025, the MOVES III programme saw impressive year-on-year volume increases for battery-electric vehicles (BEVs) and plug-in hybrids (PHEVs).

This year has seen the framework replaced with the Auto Plan+, formally announced in December last year. However, despite further clarity in February, this more centralised EV incentive scheme is yet to be formally activated. Although incentives will be retroactively available from 1 January 2026, the full operational announcement is yet to be finalised.

Despite continued EV proliferation in Spain’s new-car market, some industry observers have voiced concern regarding these delays.

‘Spain is betting heavily on electrification,’ stated José López-Tafall, general director of ANFAC. ‘The Auto+ plan should not be delayed any longer, it is a key tool to boost demand and facilitate citizens’ access to electrified mobility.

‘The future of our industry, essential for our country, lies in electrification and if we want to consolidate ourselves as an industrial hub, having a strong market is a fundamental issue. Because, as stated in the Spain Auto 2030 Plan, this is the time to decide if we want to be only a market or, in addition, a strong market backed by a benchmark industrial hub in Europe,’ he added.

BEV demand proves strong

May saw 12,049 new battery-electric vehicles (BEVs) join Spain’s car parc. This marked a 34.4% year-on-year upswing, amounting to 3,084 additional units, according to Autovista24 calculations of the latest industry data.

Despite some uncertainty surrounding the Auto+ plan, May’s BEV total returned a double-digit monthly share. Its 10.8% hold ensured a 2.9 percentage point (pp) lift, compared with 12 months prior.

Between January and May, 48,998 new BEVs reached customers in Spain, a healthy 39.9% year-on-year boost. As a result, the all-electric new-car market share stood at 9.4%. This was a modest year-on-year gain of 2.3pp.

In May, 13,741 new PHEVs were registered in Spain. This equated to the lowest year-on-year growth so far in 2026, with deliveries rising just 6.6%. The additional 845 units helped carve out a 12.3% market share.

Across the first five months of the year, the powertrain’s market share seemingly hit a cul-de-sac of 12%. This was thanks to the registration of 62,388 units, which still marked a sizeable 46.7% year-on-year uplift.

Plug-in market share stagnation?

Despite healthy sales, the plug-in market share of BEV and PHEV volumes proved static in Spain between January and May.

Combined, 111,386 new BEVs and PHEVs joined Spain’s roads in the first five months of 2026. This 43.6% year-on-year surge reflects an increase in electrified model options on the market and incentivisation.

After five months of the year, the technology’s market share stood at 21.5%. Although this marks a positive 5.7pp lift, it was just 0.7pp up on January. This apparent stasis could be a symptom of incentive uncertainty. It remains to be seen whether the expected clarity will help boost the plug-in market share further.

Hybrids continue to electrify Spain

In step with much of Europe’s new-car market, hybrids, consisting of both full and mild-hybrid technologies, remained popular in Spain.

In total, 53,414 new models were registered in May. This equated to a year-on-year lift of 18.7%, plus a 47.7% market hold, which was mirrored in the year-to-date results. Between January and May, hybrid registrations jumped by 19.5% to 247,755 units.

Combining hybrid volumes and the EV total saw a continued lift in the electrified vehicle share in Spain. After five months of the year, this powertrain mix took a 69.2% market share, gaining 11.2pp. This was the result of 359,141 deliveries, up 26.1% year on year.

ICE remains an electrification hurdle

Monthly year-on-year double-digit declines for both new petrol and diesel registrations continued in Spain during May. Despite this, petrol remained the second best-selling new-car option across the first five months of the year.

The fuel type recorded 122,249 registrations, down 20.3% year on year. However, it did retain a 23.5% market share. This made petrol Spain’s second most popular powertrain after hybrids, 14.1pp ahead of BEVs, and 11.5pp above PHEVs.

Meanwhile, diesel sales have continued to nosedive in the same five-month period. Just 20,046 units were accounted for, ensuring a 27.6% year-on-year volume drop, and a market share of just 3.9%, down 1.7pp.

Internal-combustion engines (ICEs), merging petrol and diesel volumes, reached 142,295 between January and May. This 21.4% year-on-year slide contributed to a market share of 27.4%, down 9.5pp.

Despite this established ICE tailspin, the grouping was 5.9pp ahead of plug-in vehicles in Spain’s new-car market. Major questions remain: how long before the deficit is defunct, and can EV incentive clarification expedite this switch?

Are BEVs the cure to France’s ailing new-car market?

France has seen another month of new-car registration increases as the market claws back from a poor start to the year. But could reliance on one powertrain prove to be the market’s undoing? Autovista24 special content editor Phil Curry examines the latest data.

With a positive registration result in May, the new-car market in France is seemingly regaining some of its confidence.

According to the PFA and AAA Data, 128,484 new cars took to the country’s roads, a year-on-year increase of 3.7%. This was the second month of 2026 to see improvement, following a minimal loss in April.

These results have seen the French new-car market recover from a poor start to the year. Across the first two months of 2026, deliveries were down 11.1%. However, there was a positive performance in March and more marginal results in April and May. This equated to a year-on-year decline of just 0.6% in the year to date.

Over the five-month period, 668,379 new cars were registered. This was just 4,321 units fewer than the same period last year.

BEVs provide boost for France

The registration rise in France was helped by a strong result in the battery-electric vehicle (BEV) market. All other major powertrains saw losses in the month. Deliveries of all-electric models increased by 92.7%. In all, 37,415 units left dealerships, almost double the number in May 2025.

The BEV market has been France’s saviour so far this year. It is the only powertrain to have seen deliveries increase every month of the year. After five months, all-electric registrations grew by 55.4% to 185,714 units. This was good enough for a 27.8% slice of the market.

Things could continue to improve for BEVs. In April, the French government set out its plans for the future of electric mobility in the country.

This includes an industrial objective for French manufacturers to produce 400,000 electric vehicles (EVs) per year by 2027. This target is then set to increase to one million by 2030.

In addition, the government confirmed that its third social leasing plan for EVs is set to resume in June. This will cover an additional 50,000 models.

A new program is also planned for high-mileage drivers. This is aimed at home care workers, caregivers, nurses, tradespeople, employees, and public servants. The new plan will see an additional 50,000 subsidised EVs starting in 2026.

PHEVs continue to struggle

While BEVs have been the success story in France, their EV counterpart, plug-in hybrids (PHEVs), have struggled. May saw another month of decline, as 6.5% fewer models took to the country’s roads. The 7,648 new registrations represented 6% of the country’s market, a drop of 0.6 percentage points (pp).

PHEVs have only witnessed one month of growth between January and May this year, according to Autovista24 calculations. The 35,565 units delivered to customers during that period was down 4.8%. The technology counted for 5.3% of the country’s total in the year to date, a drop of 0.3pp.

This PHEV decline detracted somewhat from the overall EV market figures. In May, the combination of BEVs and PHEVs saw growth of 63.3% to 45,063 units. This represented a 35.1% share in the month, a rise of 12.8pp.

The result kept plug-in models well ahead of their internal-combustion engine (ICE) counterparts. The powertrain grouping has firmly established itself in the French new-car market.

This is also reflected in the figures for the first five months of 2026. EVs saw 221,279 deliveries, an increase of 41.1%. The technology took a 33.1% share of the overall market, up 9.8pp, and some way ahead of ICE registrations.

France sees hybrid domination

Although BEVs were the best-performing powertrain in May and the year to date, hybrids still led the market.

However, the powertrain’s figures, made up of both full and mild variants, dipped 4.8% last month. The technology has been through a rollercoaster run in 2026, mixing some strong results with significant dips.

With 51,930 registrations in May, hybrids took a 40.4% hold of the overall total. Yet this was 3.6pp down compared to the same month of 2025, echoing a wider trend across the EU.

The figures from January to May were more positive. Thanks to a strong result in March, the hybrid market was able to keep growing, despite recent downturns. After five months, the powertrain recorded 304,838 deliveries, a 1% rise compared to 12 months prior. This was good enough for a 45.6% share, up 0.7pp.

Adding hybrids to the plug-in grouping meant electrified models dominated in May. With 96,993 units and an 18.1% volume increase, the technology took 75.5% of the market, up 9.2pp. After five months, electrified powertrains held a 78.7% share. Their 526,117-unit tally was up 14.7% against the same point in 2025.

Petrol and diesel continue to fade

While BEV uptake increases and hybrids continue to lead, traditional petrol and diesel powertrains are continuing to fade in France.

May’s 37.4% drop in volumes marked another major decrease for petrol registrations. Just 18,926 units made their way to customers, representing 14.7% of the market, down by 9.7pp.

Between January and May, 99,329 petrol models were registered, a 36.8% fall. This represented 57,771 fewer units compared to the same period last year. While petrol’s cumulative total breached the 100,000-unit barrier in April 2025, this year it will not do so until June.

Diesel, meanwhile, continues its decline. Just 3,292 units were registered in May, a fall of 52.5%. Diesel represented just 2.6% of total registrations in the month, down 3pp year on year.

Over the first five months of 2026, diesel’s decline was the steepest of all powertrains. With 17,192 units registered, volumes fell 45.9%. This left it with just 2.6% of the market, a fall of 2.1pp compared to the same period last year.

The future powertrain picture for France?

The continued decline of petrol and diesel meant the ICE market saw a 40.2% drop in volumes during May. In total, 22,218 units hit French roads, a drop of 14,925 models year on year. This meant the ICE market took a 17.3% share of overall registrations in the month, a fall of 12.7pp.

Between January and May, ICE deliveries declined by 38.3% with 72,331 fewer units moved. With a 17.4% market share, the 116,521 units delivered in the five-month period represented a fall from grace for the technology.

Whether France can build on May’s positive result remains to be seen. With petrol and diesel fading fast, hybrids stuttering and PHEVs failing to find their feet, BEVs play a pivotal role.

New social leasing plans will help the all-electric technology grow further, but could create a reliance on one powertrain. The situation is working for now, but the French new-car market remains balanced on a knife edge.

Monthly Market Update: New-car list prices and residual value impacts

Residual values (RVs) continued to normalise in Europe’s major used-car markets during May. But how does this relate to new-car list prices? Autovista24 journalist Tom Hooker explores the latest trends.

The downward RV trend across Europe’s major used-car markets showed no signs of stopping in May.

RVs as a percentage of retained list price (%RV) after 36 months and 60,000km fell year-on-year across all observed markets. This includes Austria, France, Germany, Italy, Spain, Switzerland and the UK. Furthermore, this decline is expected to continue into 2027 and 2028 for all markets, except Italy.

However, as %RVs followed a uniform pattern across the seven observed countries, new-car list prices did as well. The metric rose year on year, placing further downward pressure on %RVs.

Soaring prices meet slumping values

The three countries with the biggest list price increases were the only ones to see absolute RVs rise. The most pointed example of this was seen in Switzerland. The market witnessed a 7.7% year-on-year increase in list prices to CHF 64,632 (€70,934). Meanwhile, absolute RVs also rose by 4.1% to CHF 27,014.3.

This RV metric saw an even bigger increase of 4.7% in Austria to €22,456.1. List prices grew to €48,190, up 6.3% compared to May 2025. Meanwhile, Spain observed a 4.6% rise in list prices, reaching €37,367, as absolute RVs climbed 2% to €20,357.7.

Conversely, Italy suffered the largest absolute RV drop, with a 6.3% slump year on year to €17,625.7. This was accompanied by the largest %RV decline across the observed markets. The metric plummeted by 3.7 percentage points (pp) to 44.4%. Meanwhile, list prices increased by 1.6%.

The UK endured the second-largest fall in %RVs, down 3.2pp to 47.6%. Absolute RVs in the country also fell by 4.5%, as list prices grew by 1.9%. France and Germany suffered a decline in both %RVs and absolute RVs, too, alongside rising list prices. However, these changes were more marginal.

Austria’s ongoing value retention pressure

Pricing dynamics softened further in Austria during May. The average trade RV of 36‑month‑old cars at 60,000km declined slightly to €22,456.1. This was down 0.6% month on month, but still 4.7% higher year on year.

‘In May, %RVs fell to 46.6%. Compared to the previous month, this represented a 0.3pp decline and translated to a 0.7pp drop year on year. This highlighted ongoing pressure on value retention,’ said Robert Madas, regional head of valuations.

Full hybrids (HEVs) retained the highest trade value at 50.2%, followed by petrol cars at 49%. Then came diesel models with 46.8% and plug-in hybrids (PHEVs) with 43.8%. Battery-electric vehicles (BEVs) improved by 0.8pp compared to April but still held the lowest %RV once again at 39.3%.

The RV outlook remains broadly unchanged. %RVs are forecast to decline gradually over the coming years as supply normalises further. A 0.6% year-on-year decline is forecasted in December 2026, followed by a 0.7% decrease in December 2027.

Slight RV decline in France

‘In France, %RVs decreased slightly in May compared to April. This was mainly driven by PHEVs and BEVs. It is also worth noting that there was a marginally less expensive basket this month,’ noted Ludovic Percier, senior RV analyst for France.

Absolute values of petrol-powered cars dropped slightly compared to April, as they held value well until the middle of 2025. Meanwhile, other powertrains experienced larger decreases. Petrol is still offered as a new vehicle by many manufacturers, while diesel engines are becoming rarer.

‘Diesel-powered cars saw %RVs almost stabilise compared to last month. This is because people are still demanding diesel vehicles on the used-car market. Meanwhile, companies have switched from diesel models to BEVs and PHEVs over the last couple of years. This means the number of new diesel registrations has shrunk,’ said Percier.

HEVs recorded a month-on-month increase in absolute RVs in May. The result was caused by increasing petrol prices and more premium HEV offers on the used-car market. This could be seen in May with a more expensive basket.

Overall, used HEVs remain in demand in France, but carmakers cannot risk adding large price premiums to these models. This would jeopardise their value retention.

Unbalanced offer and demand for PHEVs

‘PHEVs continued to see RVs fall as the supply and demand on the used-car market remained unbalanced. The already established situation continues to impact used-car prices, after many vehicles in previous years were sold to fleets on the back of fiscal advantages,’ explained Percier.

Combined with a high list price on the new-car market, this explains the low RVs. PHEVs offering an electric-only range of below 60km have been most affected. The technology recorded the second-lowest %RVs in May, retaining 47.1% of its list price after three years and 60,000km on average.

BEV %RVs also decreased in May. All-electric models held 35.2% of their value, compared to the 50.1% retention recorded in the overall market.

‘The technology is evolving quickly, now offering higher ranges compared to older models from three years ago. Furthermore, the social leasing scheme for new cars is not helping used-car sales. This is because people can get great deals on new BEVs instead of buying the ones available on the used-car market,’ highlighted Percier.

‘Larger segments will be increasingly impacted in the future, as company and fleet vehicle users benefit from fiscal advantages. These vehicles will come to the used-car market in early 2028,’ he projected.

Mixed market in Germany

Overall, the German used‑car market showed a mixed picture in May, with continued pressure on RVs. After slight price decreases in April, pricing dynamics also remained under pressure last month. The average trade RV of a 36‑month‑old car at 60,000km declined to €21,091.5. This was down 1.1% month on month and 1.7% lower year on year.

‘In retention terms, %RVs fell to 46.1%. This marked a 0.2pp decline compared to April and a more pronounced 1.7pp drop against May 2025. The result highlighted continued weakening in value retention,’ stated Madas.

List prices also softened further, averaging €45,786 in May. This represented a 0.7% month‑on‑month decline. However, prices remained 1.9% higher than a year earlier, which still provided some support to absolute RV levels.

By powertrain, petrol cars continued to lead with a %RV of 47.5%, followed closely by diesel at 47.3% and HEVs at 46.9%. PHEVs held on to 42% of their value, while BEVs remained with the lowest %RV at 36.9%. This remained in line with the powertrain gap observed throughout 2025.

‘Looking ahead, gradual downward pressure on %RVs is still expected as supply normalises further,’ forecasted Madas.

By the end of 2026, %RVs are projected to decline by 1.9% compared with December 2025. Pressure is predicted to ease somewhat in 2027, with a smaller decline of 0.9% expected. This indicates ongoing RV strain, driven by recovering supply, normalising demand, and elevated list prices.

Slowdown in Italy

‘Over the past months, the Italian used-car market has shown signs of a slowdown. This forms part of a negative trend that has been observed in recent years,’ outlined Marco Pasquetti, cluster head of forecasting for Spain and Italy.

Trade %RVs declined by just 0.2pp in May compared to the previous month. However, they remain significantly lower than a year ago.

‘Our analyses indicate that the decline will continue in the coming months, albeit at a progressively lower intensity. The trend suggests a gradual move toward a stabilisation phase. We estimate that the market needs approximately one more year to reach a new equilibrium, with normalisation expected by 2028,’ said Pasquetti.

For certain powertrains, particularly PHEVs and BEVs, this process already appears to be underway. Following a period of sharp corrections, the pace of %RV decline has eased considerably.

‘Compared to April, PHEVs recorded a decrease of 0.3pp, while BEVs remained broadly stable at 28.3%. Considering these dynamics, the 2026 RV outlook has been revised. A year-end decline of 2.8% for PHEVs and 0.9% for BEVs compared to December 2025 is forecast,’ projected Pasquetti.

A different picture emerged for HEVs, which experienced a more pronounced decline than expected. The technology suffered a 4.7pp year-on-year %RV drop and a 0.5pp fall compared to April. Despite this, HEVs remain one of the most resilient powertrains in terms of RV retention.

Spain’s growing interest in electrification

‘Spain’s automotive market maintained a positive trend throughout April. Passenger car registrations increased by 8.5% compared to the same month in 2025, once again surpassing the 100,000-unit mark,’ commented Ana Azofra, regional head of valuations and insights.

This growth continues to be boosted by electric vehicles (EVs), including BEVs and PHEVs. The powertrain group saw a 42.6% rise in registrations during April. In the first four months of the year, BEV and PHEV models accounted for 21% of total registrations, up 6.3pp year on year.

Across sales channels, growth was widespread. The private channel saw the best improvement of 11.2%, followed by companies up 9.2% and rentals up 3.7%. Overall, new-vehicle deliveries continue to reflect a still dynamic demand environment across the sector. As in previous months, this growing interest in electrification is also evident in the used-car market.

Regarding used-car transaction prices, absolute RVs recorded a slight fall of 0.8%. This meant, on average, the metric stood at €20,357.7 for a three-year-old used car at 60,000km.

‘Petrol vehicles followed a similar trend, while diesel models showed a steeper drop of 1.4%. This latter result reflected softer demand for this type of powertrain, which can be linked to rising fuel prices. However, the impact is milder in Spain than in other markets, thanks to government subsidies covering part of fuel costs,’ highlighted Azofra.

‘HEVs showed the same trend as the overall market in May, with BEVs following a similar pattern. However, PHEVs saw a 1.4% decline compared with the previous month. This was more influenced by lower-priced models entering the used-vehicle supply and sales mix than by a price adjustment,’ she noted.

Stable used-car market in Switzerland

The Swiss used‑car market showed signs of stabilising in May when it came to absolute RVs and value retention. After another decrease in April, %RVs showed a modest recovery in May.

‘The average %RV of a 36‑month‑old car at 60,000km increased to 41.8%, representing a 0.4pp rise month on month. Nevertheless, compared with May 2025, %RVs were 1.5pp lower, highlighting that underlying depreciation pressure remains significant,’ said Madas.

In absolute terms, trade RVs rose to CHF 27,014.3, up 1.8% month on month and 4.1% higher year on year. This was supported by continued increases in new‑car pricing.

‘List prices climbed to CHF 64,632, representing a 0.7% month‑on‑month increase and a 7.7% rise year on year. This reinforced the upward price environment,’ stated Madas.

HEVs retained the most value of any powertrain in May by far at 46.6%. Then came petrol-powered cars at 43.1%, diesel-powered models at 41.2% and PHEVs at 39.8%. BEVs continued to be the worst-performing powertrain despite some recovery from April, holding only 36% of their original list price.

Looking ahead, the residual‑value outlook remains unchanged. %RVs are expected to decline gradually as the market continues to normalise. %RVs are forecast to decrease further in the coming years, but at a slower pace. By the end of 2026, %RVs are expected to fall by 1.5% compared to December 2025. A further year-on-year drop of 0.5% is anticipated in 2027.

UK’s varied powertrain performance

‘The UK’s used car market demonstrated consistency in May. The average %RV of a three-year-old car remained broadly level at 47.6% of list price, up 0.1pp from April,’ said Jayson Whittington, regional head of valuations for the UK.

May’s dashboard shows a big variation in powertrain performance. Petrol cars improved, with %RVs rising 0.4pp month on month to 49.1% of list price. Diesel values softened, with RVs falling 2pp to 56.3%. Even after the drop, diesel retained the highest %RV in May.

Meanwhile, electrified technologies saw mixed results. HEVs were stable, edging down 0.1pp to 51.6%. PHEVs weakened by 0.6pp to 43.9%. BEVs dipped 0.3pp to 34.4% and were 3.1pp down compared to May 2025. This reflects the growing volume of BEVs entering used car channels.

Year on year, the market was lower across most fuels, with overall %RVs down 3.2pp. The exception was diesel, which was up 3.3pp versus last May.

‘Recent wholesale activity suggests trading conditions are beginning to slow, likely increasing inventory and leading to a gentle easing in RVs, which is typical behaviour as we approach the summer months,’ concluded Whittington.

The Automotive Update: Carmakers achieving triple-digit new-car market growth in the EU

As the EU new-car market grows, three carmakers are seeing their shares expand rapidly. But how has this growth impacted incumbent players? Autovista24 journalist Tom Hooker speaks with editor Tom Geggus in the latest podcast episode.

The brand dynamic within the EU new-car market continues to shift in 2026, with further registration growth in April.

Some of the biggest carmaker groups recorded year-on-year improvements in new-car deliveries. However, market share movements do not reflect this across the board. Meanwhile, newer marques are responsible for an increasing amount of registrations.

Subscribe to the Autovista24 podcast and listen to previous episodes on Spotify, Apple and Amazon Music.

Leapmotor leaps forward

One such example is Leapmotor, which accounted for 0.8% of all new-car deliveries in the EU during April. This was up 0.6 percentage points (pp) year on year.

The dramatic leap was due to the brand’s 407.6% registrations surge last month. An even greater rise of 558.8% was recorded between January and April, with 28,709 new models taking to the road. This made Leapmotor the fastest-growing brand in the EU, in both the monthly and cumulative figures presented by ACEA.

Two other carmakers are seeing their grip on the market tighten at an even faster rate. Chery Automobile, including Chery, Jaecoo, Jetour and Omoda, claimed a 1.3% share across the first four months of the year. This was up 0.9pp compared to 12 months prior, thanks to a 267.1% registrations rise.

Chery Automobile saw a steeper climb of 1.1pp to a 1.5% share in April alone, after a similar delivery increase. Despite a smaller year-on-year improvement of 116.6%, BYD also achieved a 1.1pp share surge last month to 2.1%. The same rise was recorded cumulatively, with BYD taking a 1.9% slice of the new-car market, up from 0.8%.

Non-European brand growth

Further standout performances were seen from other non-European brands. Tesla managed a 67.2% growth rate in April as its market share rose from 0.6% to 0.9%.

SAIC Motor posted a 24.6% delivery improvement last month. The brand accounted for 2.2% of overall volumes, up 0.3pp year on year. On a smaller share of 0.5%, Honda recorded a similar increase of 22.7% in April. Mazda saw a slightly stronger rise of 28.2% last month, as its slice of the market widened to 1.1%.

So, while based on relatively smaller shares, many non-European brands are making gains across the bloc. But how has this affected some of the region’s biggest automotive groups?

A saving grace for Stellantis?

Stellantis’ market share has remained broadly stable, despite its year-on-year delivery growth. The group accounted for 16.4% of overall deliveries in April, up 0.1pp, with a 5.5% registrations rise to 159,147 units.

A greater rise in the cumulative figures also provided the group with a bigger jump in market share. Stellantis’ deliveries grew by 7.8%, while its share was up 0.6pp to 17.1%.

Two of the group’s brands played an important part in both results. Fiat saw deliveries soar by 32.6% in the year to date. Meanwhile, Opel, branded as Vauxhall in the UK, saw a registration increase of 22%.

Meanwhile, Stellantis’ two largest-volume brands, Peugeot and Citroen, have seen contrasting fortunes so far in 2026. The former experienced a 4.9% drop in deliveries between January and April, while the latter enjoyed a 9.9% rise. However, both were aligned in April, with a 2.8% improvement for Peugeot and a 3.5% increase for Citroën.

This came as other Stellantis brands endured sharp declines. Alfa Romeo and DS saw deliveries slump by 34.7% and 24.6%, respectively.

Growth for Skoda and Audi

Volkswagen (VW) Group also relied on two brands to pull deliveries forward, according to ACEA data. Skoda and Audi saw a 10.6% and 13.6% surge in registrations, respectively.

VW Group recorded a 3.2% growth in April, reaching 266,139 units. However, with other brands making rapid inroads in the market, its share fell by 0.5pp to 27.4%.

In the first four months of 2026, VW Group’s grip also loosened by 0.4pp to 26.7%. This was despite a 2.9% delivery increase compared to the same period last year, with 1,013,771 units. The figures were again helped by strong Skoda and Audi performances. Registrations rose by 15.5% for the former and 8.6% for the latter.

Meanwhile, VW, the best-selling brand in the EU new-car market, suffered a slowdown. Deliveries dipped by 2.7% in April and 3.2% in the cumulative figures. Cupra also endured a tough April with a 4.3% decline, as fellow Spanish carmaker SEAT achieved a 6.3% increase.

Other big automotive groups decline

While Stellantis and VW managed growth in the EU, the same could not be said for other automotive groups.

Renault Group faced a 4.3% year-on-year decline in April to 98,055 units. In turn, its share loosened by 1pp to 10.1%. This trend accelerated to a 7.4% registration drop in the first four months of the year. The company’s market hold thinned by 1.3pp in this period to 10.1%.

Its cumulative result was propelled by a 15.3% slump for Dacia models, as the Renault brand felt a shallower decline.

Toyota Group posted a 1.8% fall in registrations during April, as its share went from 7.3% to 6.8%. This was caused by a decline in both the Toyota and Lexus brands. The group suffered a 2.5% drop across the first four months of the year.

Kia and MINI prevent steeper fall

Hyundai Group also recorded a decline in April, with deliveries down 2.5% compared to 12 months prior. Consequently, its share shrank by 0.6pp to 7.3%. The result was based upon two counteracting forces.

Kia enjoyed a 6.1% growth in registrations last month. However, with both brands posting similar figures, Hyundai’s 10.6% slump eroded Kia’s improvement. The same trend occurred between January and April, with Hyundai Group suffering a 3.1% fall year on year as a result.

Meanwhile, MINI was BMW Group’s shining light, with a 7.9% increase in deliveries last month. Yet this was not quite enough to overturn a 1.8% drop recorded by the BMW brand.

This resulted in a 0.4% downturn for the group, as it made up 6.8% of the market, down 0.4pp. However, with growth across both marques, its cumulative registrations rose by 3.9%.

Nearly identical growth was seen at Mercedes-Benz, with a 3.8% improvement in the first four months of 2026. Despite this, its share remained stable at 4.8%.

Geely Group, including its Geely, Geely‑Emgrand, LEVC, Lotus, Lynk & Co, Polestar, Smart, Volvo Cars, and Zeekr brands, also saw stagnation. It accounted for 2.7% of overall volumes in April, down 0.1pp year on year, as deliveries rose by just 0.4%.

Incumbent players struggling

Other incumbent players in the EU new-car market did not enjoy year-on-year gains. JLR, labelled by ACEA as Jaguar Land Rover Group, suffered a 20.4% delivery drop in April. This meant it represented 0.4% of overall volumes, down 0.2pp. Meanwhile, Ford felt a 17% delivery decline, as its share slumped by 0.6pp to 2.4%.

Nissan posted a 6% fall in registrations during April compared to 12 months prior, as its share fell by 0.1pp to 1.4%. Suzuki suffered a steeper slump of 13.7% last month, making up 1.2% of overall volumes, down 0.2pp year on year. Mitsubishi saw a 56.1% drop. The carmaker captured 0.2% of total deliveries, down 0.3pp from one year ago.

Another month of EU new-car market growth spurred by EVs  

Propelled by consumer demand, the EU’s new-car market grew again in April. Additionally, the bloc is seeing increased electric vehicle (EV) uptake, disrupting the powertrain dynamic. Autovista24 content specialist James Roberts investigates the latest data.

In April 972,314 new passenger cars took to the EU’s roads, according to the latest data from ACEA. This marked a 5.1% year-on-year improvement, and a third consecutive month of registrations growth. Overall, 17 of the 27 member states witnessed new-car market expansion.

‘The market continued to benefit from strong consumer demand for a range of electrified technologies. This was supported by new and revised tax benefits and incentive schemes across major European countries,’ ACEA said in a statement. 

New hybrids, incorporating both full and mild hybrids, continued to be popular in April. However, EV registrations, comprising battery-electric vehicles (BEVs) and plug-in hybrids (PHEVs), also increased. Their popularity meant the plug-in market share overtook that of internal-combustion engine (ICE) cars for the first time this year.

After the first four months of 2026, a total of 3,794,280 new vehicles left EU forecourts, a 4.2% year-on-year uplift.

Growth for three big EU markets

In April, three of the EU’s biggest new-car markets enjoyed success. Germany, the bloc’s largest automotive marketplace, witnessed a modest 2.7% growth. Spain saw registrations climb by 8.4%, and Italy enjoyed a double-digit lift at 11.6%. However, France ended April in negative territory, with new-car volumes down by 0.3% year on year.

Outside of the EU’s big four, Poland continued to see robust growth. Aided by strong PHEV demand, the country saw new-car volumes increase by 10.3% overall. Similarly, Austria witnessed a 10.7% rise, maintaining its strong start to 2026.

The largest year-on-year registration growth came in Estonia. A total of 1,914 registrations gave the Baltic State a 78% volume increase. This is a significant turnaround for a nation whose market struggled in 2025.

EV demand remains vibrant in EU

April saw EV deliveries reach the second-highest monthly total so far this year. Combined BEV and PHEV registrations reached 295,682 units, up by 30% year on year.

This resulted in a monthly EV market share of 30.4%, a new high point, and an increase of 5.8 percentage points (pp) on one year prior. Spanning January to April, the plug-in sector hit a share of 29.3%, up by 6pp.

In April, BEV registrations in the EU increased by 37.7%, enabling a 20.6% market share, up 4.9pp. Of the largest markets, Italy enjoyed bumper BEV uptake in April. The country signalled a 98.8% year-on-year increase in volumes, with 13,199 new all-electric vehicles delivered. This came despite some industry concern regarding potential market fragility.

Overall, the EU’s largest markets saw continued EV uptake. Following a trailblazing 2025, Spain’s affiliation with all-electric motoring looks set to continue this year. April saw BEV registrations soar by 42.8% year on year, and PHEVs were up by 42.3%. This was despite some uncertainty over the status of new national EV incentives. Germany enjoyed a 41.3% all-electric increase in registrations. The result came as new EV incentives were formalised.

Amid overall new-car market stasis, France recorded an encouraging BEV delivery uplift in April, amounting to 41.8%. Aided by domestic options, such as the Renault 5 and Citroën e-C3, plus appealing incentives, this sector could be key to wider prosperity in 2026.

Smaller markets turning to BEVs

In total, 25 of the 27 EU member states witnessed year-on-year BEV volume improvements. Seven markets even recorded triple-digit percentage growth.

Continuing to impress, Croatia managed the largest BEV registration increase. The Balkan nation saw all-electric registrations jump by 450%, with 330 units accounted for in April. Alongside this, PHEV volumes increased by 158.5%.

Both Ireland and Hungary saw BEV registrations exceed four figures in April. This helped carve out a year-on-year boost of 105.2% and 101.7%, respectively. Slovenia also saw notable electrification, with BEV totals reaching 1,038 units in April, up 159.5% year on year.

PHEV popularity petering out?

While BEV uptake across the EU continued to plough a positive furrow, PHEV demand painted a more mixed picture. Overall, 16 EU member states saw year-on-year plug-in hybrid increases.

In total, 95,565 new PHEVs joined the EU’s car parc in April. Despite a 16.4% year-on-year registrations uplift, the powertrain’s market share reached 9.8%, up just 1pp compared with 12 months prior.

Across the first four months of the year, new PHEV deliveries increased by 26% year on year. However, the powertrain’s market share equated to just 9.6%, up 1.7pp. With BEV fortunes on the up, this trend could hint at a tipping point towards full electrification for some EU new-car buyers.

Hybrid highs hold for now

In April, a total of 359,056 new hybrid vehicles were registered in the EU, according to ACEA. This resulted in the second-highest monthly total of 2026, plus a year-on-year increase of 12%. The result helped solidify the powertrain’s place as the bloc’s most popular new-car choice.

Between January and April, hybrid power accounted for 38.2% of the market, up 2.9pp. This meant 1,447,864 units with the powertrain were delivered. Combined with new BEV and PHEV totals, new electrified passenger cars made up 67.4% of all registrations four months into the year. This was an 8.8pp surge.

Notably, the cumulative hybrid market share has decreased 0.4pp since January. While this may appear marginal, it suggests that a turn towards BEVs as a new-car option across the EU could be taking share away. Whether it is enough to satisfy wider decarbonisation targets remains to be seen.

Story of ICE decline continues

ICE registrations, comprising petrol and diesel models, once again declined in April. Overall, four nations saw year-on-year petrol registration improvements, and seven witnessed diesel demand increase.

In total, 292,467 new ICE vehicles left EU forecourts, down by 16.5% year on year. This dropped the market share to 30.1% for the month, down 7.7pp. This put ICE 0.3pp below the plug-in market share, a new development for 2026.

After four months of the year, the ICE market share sat at 30.2%. This remained 0.9pp above plug-in volumes. With robust EV registrations prevailing across the EU, how long will it be before the gap is eroded?

Amid the continued shift towards electrified powertrains, petrol appeal remains relatively solid. April saw 218,485 new cars reach EU customers. Despite a 16.3% year-on-year volume fall, the fuel type accounted for 22.5% of the overall market. This was 1.9pp ahead of BEVs.

As petrol hangs on, diesel continued to fall away in April. In total, 73,982 new vehicles were registered, equating to a year-on-year slide of 17.1% and a market share of 7.6%.

Four months into 2026, diesel captured 7.7% of the EU new-car market. Notably, despite the continued drop off in demand, it only saw a fall of 1.9pp year on year.

Will US new-vehicle retail turn a corner in May?

A seven-month run of negative new-vehicle retail results in the US is expected to be broken in May. The latest automotive forecast for JD Power reveals what can be anticipated from the market this month.

Total new-vehicle sales, including retail and non-retail transactions, are projected to reach 1,490,900 units in May. This equates to a 5.8% year-on-year increase and a 1.9% incline without adjusting for the number of selling days.

The seasonally-adjusted annualised rate (SAAR) for total new-vehicle sales is expected to be 16.3 million units. This is up 0.7 million units compared with 12 months ago.

New-vehicle retail sales for May 2026 are projected to reach 1,231,900 units, a 6% year-on-year increase. Without adjusting for the number of selling days, this means a 2.1% increase. The SAAR for retail new-vehicle sales is expected to be 13.6 million units, up 0.6 million units.

Positive retail expectations amid headwinds

‘May results reinforce the underlying strong demand for new vehicles’, said Thomas King, president of OEM solutions at JD Power. However, the last three months have seen skewed year-on-year comparisons. This is because of last year’s consumer reaction to the perceived risk of higher prices from vehicle tariffs.

Sales in March and April 2025 were inflated as consumers rushed to showrooms, pulling their purchases forward. But this was paid back in May, with an estimated 63,000 sales moved into the preceding months.

‘This payback effect makes for a flattering year-on-year comparison, but in no way diminishes the impressive sales pace,’ King said. Retail volume is on pace to expand 6% even as buyers continue to navigate elevated payments and persistent affordability headwinds.

Structural affordability pressures

‘Financing conditions are moving in consumers’ favour, but it is not enough to fully offset structural affordability pressure,’ King commented.

The average interest rate on new-vehicle loans is expected to fall 0.47 percentage points (pp) to 6.59%. This would be the lowest May reading in two years. Meanwhile, the average transaction price is effectively flat at $46,023 (€39,548), down 0.2% from a year ago. Even with those tailwinds, average monthly finance payments are climbing 2.8% to $810.

Buyers who purchased at peak prices several years ago, when inventory constraints were severe, are now returning to the market with weaker equity positions. The proportion of trade-ins carrying negative equity has reached 30.4%, up 2.9pp year on year.

Manufacturer discounts

In response, manufacturers are increasing discounts. Average incentive spending per vehicle is trending towards $3,297, a 20.7% increase from a year ago.

However, this is also a product of lapping the tariff payback. There were unseasonal pullbacks in incentive spending last May as manufacturers reduced discounts precautionarily to offset tariff costs.

Incentives as a percentage of the manufacturer’s suggested retail price are expected to hit 6.4%, up 1pp from May 2025. For non‑electric vehicles, average incentive spending per vehicle is trending towards $2,973, a 23.6% increase from a year ago.

Incentive spending on electric vehicles (EVs) remains materially higher. This level is expected to reach $10,308 per unit, up 11.2% from last year. This continues to underscore the role of discounting in supporting EV demand.

Hybrids claim larger retail share

Consumers are using longer loan terms to manage monthly payment affordability. 13.4% of loans now have terms of 84 months or longer, to help fill in part of the affordability gap.

The combination of elevated fuel prices and increased availability of hybrid powertrains is driving a shift in the sales mix. The hybrid share of retail sales has climbed to 16.3%, up 1.6pp. In contrast, the EV share softened to 7% due to the elimination of federal credits.

Volume growth despite flat transaction prices means that total retail consumer expenditure is projected to rise to $54.5 billion. This equates to an increase of $1.1 billion from May 2025.

Lease penetration continues to recover from the post-pandemic drought. 22.6% of buyers are expected to lease in May, up 0.3pp from a year ago. This provides manufacturers with a useful tool to manage monthly payment challenges.

The models and brands driving Germany’s expanding new EV market

Awaiting the launch of a new incentive framework, electric vehicle (EV) sales in Germany stepped up in March. But which models found favour? James Roberts, Autovista24 web editor, unpicks the latest data from EV Volumes.

Following an unspectacular start to the year, EV sales, including battery-electric vehicles (BEVs) and plug-in hybrids (PHEVs), rallied in March.

According to EV Volumes’ data, 100,178 new EVs were added to Germany’s roads in the month, a 45.5% year-on-year increase. This marked the best monthly total since August 2023. However, that period saw a pull-forward effect, before subsidies for commercial BEV buyers ended in September 2023.

All-electric models enjoyed a significant year-on-year gain in March. In total, 70,309 vehicles reached customers, a 66% improvement on 12 months prior. PHEV sales increased by 12.8% to 29,869 units.

This strong month for EV demand helped cap a robust first quarter of new EV sales in Germany. Three months into the year, electric vehicle sales stood at 234,701 units. This was up from 175,558 in the first quarter of 2025, equating to a 33.7% increase.

Again, BEVs made notable gains in the first quarter. In total, 158,875 new all-electric vehicles were sold in Germany, up from 112,011. This resulted in a year-on-year gain of 41.8%. In total, BEV powertrains made up 67.7% of overall EV volumes between January and March.

PHEVs, meanwhile, accrued a more modest gain. After three months of the year, 75,826 units were delivered, equating to a 19.3% year-on-year increase.

Germany’s EV incentives

Recent BEV and PHEV sales momentum in Germany followed the announcement of EV incentives at the start of the year. First presented in January, the online application portal for the grant has now opened.

The scheme offers a direct grant for the purchase and lease of new BEVs, PHEVs, and extended-range electric vehicles. Taxable household income and family size determine the amount of funding available for each applicant. Importantly, retroactive applications are eligible back to 1 January 2026.

In total, €3 billion has been allocated to the scheme. The government aims to support around 800,000 vehicles with subsidisation by the end of 2029. So, with the activation of the scheme’s application process, this may accelerate EV growth in the second quarter of 2026.

Škoda hit a new high

The Škoda Elroq emerged as the best-selling EV in Germany during the first quarter of 2026. In total, the Czech BEV moved 10,339 units, claiming 6.5% of the all-electric vehicle market. This contributed to Škoda’s increasing slice of EV sales. The carmaker’s 9.2% share was up 2.1 percentage points (pp) year on year.

Since March 2025, the Elroq has shifted four-figure monthly volumes in Germany. March 2026 saw a peak sales volume of 3,872 units, plus a year-on-year boost of 242%. However, the Elroq’s monthly total ended up behind the Tesla Model Y.

The US BEV saw 6,841 sales in Germany during March. However, this was bolstered by the company’s typical end-of-quarter delivery spike. Within the first quarter of 2026, the Model Y was the second-best-selling BEV in the country. The crossover recorded a 5.9% market share with 9,300 units.

VW looms large over Germany’s EV market

Germany’s biggest EV seller, Volkswagen (VW), occupied third and fourth in the first quarter BEV model standings. Yet despite continued dominance, VW’s overall market share decreased by 3.8pp, to 15.9%.

The ID.3 rounded out the top three in the first quarter of the year. The compact hatchback, aimed at a more urban and suburban clientele, saw 8,158 units reach customers in Germany. Meanwhile, its larger sibling, the VW ID.7, followed in fourth with 7,917 units.

By offering two BEVs for different automotive and demographic needs, VW has ensured a significant market hold. Despite a 5.8% year-on-year volume fall in March, the ID.7 boasted a 5% market share across the first three months of 2026.

Strong first quarter for European brands

The Škoda Enyaq ended up fifth in the BEV standings three months into 2026. A larger offering than the table-topping Elroq, the SUV accounted for 7,542 sales. A bumper 3,392 units in March alone enabled a year-on-year leap of 41.8%. Like VW, Škoda has developed the Elroq and Enyaq to appeal to a wide-ranging demographic.

The Audi A6 e-tron ended the first quarter as the sixth best-selling BEV in Germany. The all-electric hatchback was just 47 units above the Mercedes-Benz CLA, with both vehicles commanding a 3.1% BEV market share.

A larger BEV offering from Audi, the Q6 e-tron, claimed eighth place with 4,032 deliveries. March was a strong month with the SUV recording a year-on-year volume gain of 97%. In ninth, VW’s mid-sized BEV, the ID.4, shifted 3,889 units, two more than the Cupra Born in 10th. Both secured a 2.4% market share.

PHEV market competition heats up

Volvo’s XC60 emerged as the best-selling PHEV across the first quarter of 2026. Following a ninth consecutive month of four-figure sales in March, the model recorded 3,564 deliveries in the first quarter. This resulted in a 4.7% market share, despite a year-on-year volume drop of 1.4% in March.

The Mercedes-Benz GLC followed in second with 3,201 sales between January and March, taking a 4.2% market share. The mid-sized SUV had a stellar March performance, with a 125.6% year-on-year volume lift.

The VW Tiguan took third in March’s PHEV top three, recording 1,339 sales. However, the SUV’s monthly market share declined by 0.3pp to 4.5% amid growing competition.

VW occupied four positions in Germany’s top 10 PHEV table during the first quarter. The VW Tayron claimed fifth with 2,805 sales, followed by the Passat in sixth, notching up 2,708 units. The VW Multivan rounded out the quarterly top 10 with 2,282 deliveries.

BYD’s rise continues

The first quarter of the year saw BYD continue its rise in the German EV market. The brand saw a 644.5% year-on-year surge in deliveries in the first quarter. As a result, its market increased by 3.2pp to 3.9%. This places the Chinese carmaker 0.5pp ahead of Ford and Volvo.

After recording its first sales in Germany during August last year, the BYD Seal 6 Touring has been making waves. In March alone, the estate was the third best-selling PHEV in the country with 1,117 sales and a 3.7% market share.

This meant that in the first quarter it managed 2,297 deliveries and a 3% share, putting it ninth. This put it behind the Mercedes-Benz E-Class in eighth with 3.2% and the Audi A5 in seventh with 3.3%.

The Automotive Update: Key trends in new EV sales and used-car transactions

How have new electric vehicle (EV) sales performed in the first quarter across different regions? What about major European used-car markets? Autovista24 journalist Tom Hooker breaks down the trends in the Automotive Update podcast.

One country appeared to define the results of the global new EV market in the first quarter, but which one? How did the other markets perform? Plus, what happened in major European markets, and how did the different powertrains perform? Listen to the latest episode to find out.

Subscribe to the Autovista24 podcast and listen to previous episodes on Spotify, Apple and Amazon Music.

New EV sales down globally

Sales of new battery-electric vehicles (BEVs) and plug-in hybrids (PHEVs) fell globally in the first quarter, EV Volumes’ data reveals. PHEVs, including extended-range electric vehicles, took an 18.7% tumble compared with the first quarter of 2025. Meanwhile, BEVs were only down by 1.6%.

This meant the entire new EV market saw sales decline by 7.6% year on year between January and March. This was driven by a 28.6% decline in China, where 46.4% of all plug-in vehicles were sold in the first quarter.

The US also saw sales fall, down 32.9% year on year. But even as the world’s second-largest volume EV market, it accounted for only 6.2% of plug-in deliveries.

Europe’s EV sales

Europe saw new EV sales increase in the first quarter, up by 28%. This was thanks to some positive regional performances from the likes of Germany, the UK and France. EV sales grew by 33.7% in Germany, 25.2% in the UK and 40.8% in France.

Across Europe, BEVs drove EV sales acceleration in the first quarter. In total, 725,375 all-electric cars were delivered, up 25.4% year on year. This meant the powertrain accounted for over two thirds of all new electric vehicle sales in Europe.

Used-car trends

While new EVs enjoyed a positive first quarter in Europe, the powertrains accounted for a marginal number of used-car transactions. Major used-car markets with powertrain breakdowns revealed how internal-combustion engines (ICE) remain dominant.

In March, France saw used diesel cars account for 42% of transactions and petrol 38%. In Spain, diesel made up 47.8% of used sales in the first quarter and petrol 35.8%. In the UK, petrol remained the most popular used powertrain, making up 56.9% of volumes, while diesel represented 31.2%.

While ICE remained on top, many of these markets saw sales of the fuel types decline year on year. As more used EVs become available, increasing the number of choices for buyers, well-priced models will stand out. With fuel prices remaining high, affordability will be an important consideration before purchase.

Which countries are powering the world’s new EV market?

Which countries saw electric vehicle (EV) sales surge in the first quarter of 2026, and where did they decline? How did this impact the brands selling plug-in models? Autovista24 editor Tom Geggus explores the latest data from EV Volumes.

Globally, deliveries of new EVs fell by 7.6% year on year in the first quarter of 2026. Combined sales of battery-electric vehicles (BEVs) and plug-in hybrids (PHEVs) struggled in January, suffered in February, and stagnated in March.

Of the 3,894,666 EVs delivered, 69.3% were fully electric, up 4.2 percentage points (pp) from the first quarter of 2025. This reflected the global BEV market’s higher volume of 2,697,413 units and a more marginal drop of 1.6%.

China and the US remained the world’s biggest and second-biggest BEV markets, respectively. However, both recorded double-digit year-on-year declines. China suffered a 23.6% fall, resulting in 361,855 fewer sales. This eclipsed the US, where 202,509 BEVs were delivered, down 25.7%.

The importance of China to the global BEV and PHEV markets is well established. Accounting for 43.5% of all-electric deliveries worldwide, it was far ahead of the US, which made up 7.5%. Then came Germany with 5.9%, the UK with 5.1% and France with 4.3%.

However, the size of the Chinese BEV market means any poor result has a large knock-on effect. Following a 20.4% delivery decline in January and a 39.2% drop in February, March’s 15.6% slide was something of a relief.

While the US followed a similar pattern of easing decline into March, Germany, the UK and France recorded accelerating growth. But with their comparatively smaller volumes, this did little to ease the global BEV market’s descent.

A similar sales trend

The same trend repeated itself in the global PHEV market to an even greater extent. PHEV sales fell by 18.7% to 1,197,253 units. The effect of struggling sales in China was even more apparent as the country accounted for 52.9% of all deliveries.

China saw PHEV sales drop by 36.4% year on year. Meanwhile, other leading markets, including the UK, Germany, and Italy, recorded growth. However, these three countries made up 6.7%, 6.3% and 3.4% of all PHEV sales, respectively.

This meant the positive results in these markets paled in comparison to the negative results in China. Additionally, the US recorded a decline in sales, reaching 38,953 units and accounting for 3.3% of all PHEV volumes.

Brands topping sales charts

BYD led the global EV market across the first quarter of 2026. However, its position of dominance appeared to be slipping, as its sales fell by 33.7% to 562,597 units. This meant its EV market share slipped by 5.7pp to 14.4%.

The brand’s performance in China drove this decline, where its sales fell by 56.2%. More than half of all BYD’s new EVs were sold domestically. This was far ahead of its second-biggest market, Brazil, with 6.7% share.

However, BYD has been making a concerted effort to export more models, decreasing the dependence on its domestic performance. This was reflected regionally, with China responsible for 82.1% of its EV sales in the first quarter of 2025. Meanwhile, export markets including Brazil, the UK, Australia and Thailand made up more of the brand’s figures. 

PHEV sales struggle

With a large lineup spread across different powertrains, BYD offered a wide range of choices to buyers in different markets. The brand led the best-selling PHEV table in the first quarter with the BYD Song Pro. It sold 43,869 units and represented 3.7% of all plug-in hybrids delivered.

The carmaker placed three other models in the top 10. This included the BYD Song Plus, also known as the Seal U in some markets, in third with 41,446 units sold.

The Qin Plus and the Seal 6 were slightly further behind in sixth and seventh, respectively. All these top-performing BYD PHEVs saw sales shrink in the first quarter, with declines steeper than 30%.

The remaining six spots in the PHEV top 10 were taken by Chinese models. The Fang Cheng Bao Tai 7 came second, close behind the BYD Song Pro in first. Battling it out in fourth and fifth, the Jaecoo J7 and Aito M7 were further behind the top three.

The Zeekr 9X came eighth, followed by the Li Auto L6 in ninth. The Galaxy Starship 7, also known as the Starray, rounded out the top 10.

BEVs do a bit better

While BYD’s top PHEVs did see declines, its leading BEVs only did slightly better in the first quarter. The BYD Seagull, also known as the Dolphin Surf, took fourth in the best-selling BEV table. Its 66,512 deliveries were down 27.2%, capturing 2.5% of the market.

The BYD Yuan Up, also known as the Atto 2, took seventh with a 1.9% share. This was thanks to 50,196 sales, down 14.9% year on year. However, the BYD Dolphin was close behind in eighth with a 1.8% share and 48,814 sales. This was up 31.7% compared with the first quarter of 2025.

While the top 10 table was not short on Chinese models, Tesla took the top two. The Tesla Model Y came first with 240,400 sales, up 19.2%, taking an 8.9% market share.

Unlike BYD, Tesla has a far smaller product range. The Model Y made up 67.2% of its sales, underscoring its central importance to the brand. This was up from 60% in the first quarter of 2025.

The world’s second-most popular BEV was the Tesla Model 3. It recorded less than half the volume of its SUV crossover sibling at 101,405 units. However, this was down by 16.8% year on year while it made up 28.3% of all Tesla’s sales, down 7.9pp.

Tesla’s South Korean boost

Like BYD, Tesla saw its sales fall in China with volumes down by 16.3% to 112,910 units. However, Tesla only sells BEV models, which meant less exposure to China’s struggling PHEV market.

In total, 31.6% of Tesla models were sold in China during the first quarter, down from 40.1% a year prior. With a more even sales spread, the brand saw 29.4% of its BEVs delivered in the US, down only 3.6pp as sales fell by 5.3% to 105,050 units.

However, Tesla did see a 335.1% increase in sales in South Korea, with 20,964 units delivered. This meant 5.9% of all its models were sold in the country during the quarter, up 4.4pp year on year.

While it did capture the top two in the global BEV rankings, Tesla is also up against stiff competition. The Xiaomi YU7 took third in the first quarter, with 71,942 sales and a 2.7% market share.

The Geely Geome Xingyuan, also known as the EX2, took fifth, followed by the Li Auto I6 in sixth. The Nio ES8, also known as the EL8, claimed ninth, followed by the Toyota bZ4x in 10th.

Leading global brands

For some brands, these high-performing models helped position them as leading EV brands. Li Auto was boosted by the performance of its I6 and L6 models, which accounted for 78.9% of its plug-in sales. In total, it sold 96,406 EVs in the first quarter, putting it sixth in the brand table.

With one of its BEVs present in the model top 10, Toyota came seventh in the brands table. Its EV sales increased by 46.5% to 89,958 units in the first quarter. Xiaomi also placed a model in the BEV top 10, as it came ninth in the brand ranking. The carmaker reached 82,073 sales between January and March.

Not all the world’s biggest EV sellers made the top 10 BEV or PHEV tables, however. BMW took fourth with 110,103 sales, and Leapmotor fifth with 103,436 units. Kia came eighth with 85,086 models moved. Then in 10th was Mercedes-Benz with 79,494 deliveries.

Ahead of all of them was Volkswagen (VW) in third. Its top-selling ID.4, ID.3 and ID.7 BEVs all recorded delivery declines of 32.9%, 30.4% and 18.9%, respectively. However, its plug-in hybrids picked up the pace. PHEV versions of the Golf, Tayron and Multivan all saw surging volumes.

Unlike BYD and Tesla, China was not VW’s leading market. Instead, it pushed the most EVs domestically, with 33.4% of its plug-in sales taking place in the country. Then came the UK at 12.1%. However, this was down from 12.4% as deliveries dipped. There was also European success in France and Italy.

Yet VW’s EV sales in China did decline by 62.9% year on year. The market accounted for 7.8% of its plug-in deliveries, down from 17.8%.

This highlights the weight of the Chinese market on global EV sales figures and the brands looking to move models. But as the region sees more carmakers exporting, other countries will see greater model diversity and increased competition.

BYD sales slide in China’s new EV market

As China’s electric vehicle (EV) market struggled in the first quarter of 2026, how big a slide did BYD experience? Are other carmakers also struggling to match their 2025 performances? Autovista24 special content editor Phil Curry examines the data.

China’s EV market is in a state of decline. Both the battery-electric vehicle (BEV) and plug-in hybrid (PHEV) sectors ended the first quarter of the year with large losses. The market’s reliance on three of its biggest domestic brands proved an issue, dragging results down.

Three months into 2026, 1,806,085 new EVs were sold in the country, according to data provided by EV Volumes. This was down 28.6% compared to the first quarter of last year.

The BEV market ended the first quarter of this year down by 23.6%. In total, 1,172,159 all-electric models took to China’s roads in the three-month period. BEVs accounted for 64.9% of the country’s EV market between January and March.

In the third month of the year, BEV volumes declined by 15.6%, as 562,646 units were sold. However, this was the powertrain’s best month of 2026 so far in terms of volumes.

PHEVs continued to struggle. After the first quarter, the technology saw 633,926 sales, a 36.4% drop year on year. This was compounded by a 33.9% fall in volumes during March as 243,350 models were delivered.

But which brands led this downturn in China’s EV sector, and is a lack of market diversity responsible?

BYD hurts in China

BYD saw its sales slump in the first quarter of the year. Across both BEVs and PHEVs, the Chinese brand managed 305,131 deliveries. This was a fall of 56.2%, equating to 391,401 fewer units making it to Chinese roads.

This meant it accounted for over half of the unit drop in the country’s wider EV market. BYD’s PHEV sales took a noticeable fall in the quarter, down by 66.8%.

After three months of the year, BYD’s best-selling model took second in the domestic top 10. The BYD Song Pro saw 31,773 deliveries, ending up almost 11,000 units behind first.

The brand still has the largest presence in the PHEV sector, with five models in the 10 best-sellers list. Notably, the Qin Plus in fourth, Seal 6 in sixth, the Qin L in ninth and Song L in 10th.

Better BEV result for BYD

In China’s BEV market, BYD saw sales fall in the first quarter, down by 41.3%. Here, there was a slight shift in the brand’s fortunes.

The Yuan Up, which was not featured in the top 10 during January or February, experienced a better month in March. Despite its 21,179-unit total falling 15.4% year on year, the result propelled it to sixth in the cumulative table. This made it the best-selling all-electric BYD of the quarter.

The BYD Dolphin has been the brand’s BEV success story, with growth in January and a slight loss in February. March saw a 49.9% upswing and accounted for over half the model’s sales in the quarter. It sat eighth in the cumulative table with 29,074 units.

It was followed by the BYD Seagull, which had a rocky start to the year. It still held ninth after three months of 2026, however.

Wuling’s woes

Wuling had great success with its Mini model, while the Wuling Bingo also contributed to the brand’s total. Much of the brand’s performance came from the BEV market, with limited success PHEV success.

But like BYD, Wuling has been unable to capitalise on its strong market position three months into 2026. The brand sat sixth in terms of sales, as 75,272 units made their way to customers, a 54.5% decline.

With fewer options than BYD, the carmaker was led by these two models in 2025. However, both struggled in China’s BEV market in the first quarter. After three months, the Wuling Mini was 10th, with 25,420 sales, down 71.5% compared to the first quarter of 2025. Meanwhile, the Bingo was outside the top 10, with volumes down 80.7%.

Geely loses ground

The first quarter of 2025 saw Geely place third thanks to an exceptional performance from its Geome Xingyuan model. It went on to be the best-selling BEV in China during 2025.

However, during the first quarter of 2026, Geely sat in eighth. With 68,867 sales, its figures declined 49.6% in the first quarter of 2026. It was a slow start from the Xingyuan Geome and a stall from the Panda Mini, which hampered progress.

The Geome Xingyuan had a more positive March as the second-best-selling BEV in China. But the 30,356 units were still down 6.5% year on year. The result propelled the model up the cumulative table, where it sat third after three months. Its 57,149 deliveries made up 83% of Geely’s overall total in the quarter.

Meanwhile, with its sales falling 76.6% to 9,993 units, the Panda Mini failed to make the quarter’s top 10.

External influence

China’s EV market is dependent on domestic brands, with only one carmaker from outside the country featuring in the top 10. This is the US brand Tesla, which relies solely on the BEV market for its volumes.

After the first quarter of 2026, Tesla sat second, with 112,910 sales. This marked a year-on-year loss of 16.3%. However, its Model Y was the best-selling BEV in March, thanks to the carmaker’s quarterly delivery schedule. With 38,895 units, sales were down 19.3%.

The result did propel the Model Y to the top of the BEV chart three months into 2026. It secured 82,103 sales, holding 7% of China’s all-electric market in the period.

Meanwhile, the Tesla Model 3 also struggled. March saw it place seventh with a 38.8% loss in volumes, to 15,873 units. After the first quarter, the BEV had 30,661 sales, taking seventh in the cumulative chart.

Spotlight on domestic brands

BYD’s domestic success meant that even with its losses, the brand was still able to lead the EV sector. But Wuling and Geely’s decline let other marques shine in the first quarter.

While Tesla jumped to second, Li Auto placed third. Its 93,601-unit tally increased by just 0.8%. This was helped by the strong performance of its newest model, the I6. It was the third-best-selling BEV in March, ending up fourth in the first quarter.

Xiaomi also had a strong start to 2026. The carmaker only has two models available in China, and it was the YU7 that caught the market’s attention. However, sales slowed in March, reaching 13,757 units. This placed it 10th in the month but second in the first quarter, with 71,767 sales. But its poor monthly result let the Tesla Model Y slip past into the top spot.

PHEV struggles continue

China’s PHEV market saw brand diversity in the first quarter. Leading the way was the Fang Cheng Bao Tai 7 with 42,677 units and a 6.7% market share. The model was 10,904 units ahead of second and has been a standout performer so far this year.

It topped the PHEV market every month of the quarter. The Bao Tai 7 secured 14,046 sales in March and a 5.8% market share, keeping it ahead of the BYD Song Pro.

Zeekr also saw an impressive performance across the first quarter. Its 9X model ended March in fourth. It saw 9,590 deliveries, taking a 3.9% market share. This helped the 9X remain fifth in the cumulative chart, with 21,266 sales.

The Aito M7 has also been a strong performer in the Chinese PHEV market. It secured seventh in March. Its 6,610 units in the month was a 1.5% increase year on year. As a result, the model lost out to the BYD Song Pro in the cumulative chart, slipping to third with 24,990 deliveries.

Another model reaching the upper echelons of the PHEV table was the Wey Gaoshan. It took eighth in March with 6,132 deliveries. After the first quarter, the model sat eighth as well with 15,078 units.

BEVs see some improvement

In March’s BEV chart, the Tesla Model Y led the way ahead of the Geely Geome Xingyuan, as the Li Auto I6 took third.

March saw a standout performance from the Nio ES8 with 17,120 sales. The model was a constant presence in the BEV table during the first quarter of the year. However, the rise of the Xingyuan Geome in the month pushed it down to fifth in the cumulative chart.

China’s BEV market also saw brand diversity in the first quarter. The top 10 best-selling model list saw seven marques represented. However, BYD was less dominant, with only three models appearing. Tesla saw two BEVs in the chart, while Geely, Li Auto, Nio and Wuling also featured.

But while the Chinese BEV market struggled between January and March, it is a sum of multiple losses. Monthly declines combined to pull the powertrain down in the period.

With BYD featuring many BEVs in its lineup, it contributed significantly to the Chinese EV market’s first-quarter performance. As other brands establish themselves, the country’s new-EV market is in a period of adjustment. Brand diversity is key to ensuring ongoing growth.