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EU new-car registrations boosted in first quarter by strong March

Robust demand pushed the EU new-car market to year-on-year growth in the first quarter of 2026. Rising electric vehicle (EV) sales prevailed as a significant catalyst for growth. But is a familiar powertrain still dominating sales? James Roberts, Autovista24 web editor, unpicks the latest data. In March, 1,158,317 new vehicles were registered across the EU, according to Autovista24 calculations of ACEA data. This equated to a 12.5% year-on-year lift. Overall, in March, 24 of the 27 EU states recorded new-car market growth. Assessing the first quarter of 2026, this strong March performance helped boost the EU’s overall new-car market. After three months of the year, 2,822,617 new vehicles reached EU customers according to Autovista24 analysis of ACEA data. This ensured a healthy 4% raise, amounting to an additional 107,912 units. Electric sales increase Sales of EVs, spanning battery-electric vehicles (BEVs) and plug-in-hybrid vehicles (PHEVs), continued to increase in the first quarter. The EU’s four biggest markets, Germany, Italy, France, and Spain, all saw double-digit BEV volume increases in the month. This figure has been helped by domestic tax benefits and incentive schemes. However, some countries have seen consumer sentiment turn towards electrification, particularly as petrol and diesel prices increased. Hybrid powertrains, including both mild and full-hybrid versions, also made gains. Consistently the preferred choice for EU consumers, the powertrain made it over the one-million-unit mark in the first quarter. Despite this high watermark, a peak to hybrid demand could be in the rear-view mirror. New petrol vehicles are helping keep the share of internal-combustion engine (ICE) cars above EVs. This gap is narrowing, but is it closing fast enough to satisfy EU goals to phase out new petrol and diesel sales by 2030? Hybrids hold the cards The best-selling powertrain choice for new cars across the EU was hybrids. March saw 444,835 models featuring the technology roll off the bloc’s forecourts. This equated to a 20.1% volume increase and a 38.4% slice of the new-car market, up 2.4 percentage points (pp). Over the first three months of 2026, hybrid volumes increased by 12.8% year on year, with 1,089,421 units accounted for. This underscored a consistently high EU new-car market share of 38.6%, up 3pp. In the first quarter, hybrid registrations increased in 20 of the 27 EU states. Despite eye-catching EV sales growth, the larger markets saw hybrid volumes stay high. After three months of the year, these volumes outweighed both BEV and PHEV figures. Hybrid sales in Italy and Spain scored double-digit increases at 25.8% and 18.5%, respectively. Meanwhile, Germany saw an upswing of 7.4%, and France a modest gain of 3.1%. Other markets scored notable year-on-year hybrid gains in the first quarter. This included Austria with 30.2%, Czechia 14.5%, and Portugal 44.9% Bulgaria witnessed the highest hybrid percentage gain of 114.2% with 647 units registered. Estonia also saw triple-digit gains amounting to 109.3% and 2,286 units. EU EV sales on the right track? Three months into 2026, total EV sales, combining BEV and PHEV volumes, reached 815,281 units in the EU. This marked a 195,466-unit boost, equating to a 31.5% year-on-year increase. This cumulative gain carved out a 28.9% market share, up 6.1pp. BEVs made up the majority of EV registrations, with 546,937 all-electric cars making their way to EU customers. This 32.5% increase in volumes ensured a 19.4% market share, up 4.2pp. Germany enjoyed a year-on-year BEV registrations increase of 41.3% in the first three months of 2026. March helped with the country recording its biggest BEV registration increase and market share since August 2023. Despite ending the first quarter with an overall new-car market drop of 2.1%, France saw a positive BEV result. It was second only to Germany in terms of unit volumes, with 112,083 units delivered. Buoyed by Subsidies, income-based schemes, and company-car tax changes, this trend has helped stabilise the market. Spain’s new-car market impressed in 2025, but EV incentives are being ironed out for this year. However, between January and March, BEV volumes still increased by 41.6%. This is compared with early 2025, which saw inflated market results spurred by aid packages for flood-hit regions. PHEVs helping electrify EU markets Alongside BEV improvements, PHEV registrations continued to grow. In total, 268,344 PHEVs made their way to EU customers between January and March. This marked a 29.7% uptick, securing a 9.5% new-car market share, an increase of 1.9pp year on year. PHEV demand allowed Italy to return strong EV results in the three-month period. While BEV volumes improved by 65.7%, PHEV sales climbed to 40,052, a 110.1% surge. While petrol and diesel deliveries fell in the country, EVs and hybrids enabled market-wide growth of 9.2%. Austria witnessed healthy BEV uptake in the first quarter, with a 22.4% volume increase. Coupled with a 45.6% rise in PHEV sales, this pushed the country’s new-car market to a gain of 17%. Similarly, Poland continued to impress. PHEV power proved irresistible in the EU’s fifth-largest market. In the first three months of the year, the powertrain’s volumes increased by 10.5%, with 11,684 taking to Polish roads. Almost half of these units were registered in March. Balkan boost The most eye-catching EV sales bounce occurred in Croatia. The Balkan nation enjoyed a 282.4% increase in all-electric registrations to 780 units. This has seemingly been achieved with the help of an incentive scheme. Additionally, year-on-year PHEV registrations increased by 145.8%, leaping to 1,094 deliveries between January and March this year. Slovenia also saw a significant turn towards plug-in powertrains. BEV volumes increased 78.2% year on year, with 2,297 sales, while PHEV volumes rose 44.5% to 734 units. The country also saw healthy hybrid increases of 18.5% as well as a marginal petrol registration growth of 1.8%. As the EU new-car market enters the fourth month of the year, one pattern is emerging. EVs are playing a significant part in bolstering EU members’ new-car market fortunes, large and small. Adding hybrid volumes to BEV and PHEV sales across the bloc saw a total of 1,904,702 new vehicles sold between January and March. This ensured a dominant market share of 67.5%, a year-on-year gain of 9.1pp. Petrol remains a choice amid EU electrification Three months into 2026, the EU recorded 636,502 new petrol car registrations. While this marked an 18.2% year-on-year slide, it equated to a 22.6% market share, the second largest after hybrids. Significantly, petrol sales also exceeded BEV and PHEV figures. In total, just five EU nations witnessed petrol registration improvements. The highest came in Estonia, with a 106.3% year-on-year climb. Austria saw a 4.3% improvement. This was boosted by a strong March, where 8,181 new petrol variants were registered in the country. In the larger markets, falling petrol sales proved prevalent in the first quarter. France saw the biggest drop at 40.3%, then Italy at 18.6%, followed by Spain at 18.1%, and Germany at 16.1%. Combined petrol and diesel units topped out at 855,067 across the EU in the first three months of 2026. This gave new ICE registrations a 30.3% hold over the market, down 7.9pp year-on-year, but still 1.4pp ahead of the EV market share. While petrol still provides a relatively popular mainstream new-car choice, diesel continues to decline. Between January and March, 218,565 new vehicles made their way to customers, down 15.7%, returning a 7.7% market share, falling 1.8pp year on year. Just four nations recorded growth for the fuel type.
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Is China’s appetite for new EVs starting to wane?

Both battery-electric vehicle (BEV) and plug-in hybrid (PHEV) markets saw volumes plummet in China during February. But what is driving these declines, and which models came out on top? Autovista24 special content editor Phil Curry explores the figures. Following a difficult January, BEV and PHEV markets in China plummeted for a second month, according to EV Volumes’ data. BEV deliveries declined by 39.2%, with 262,698 sales in the month. Meanwhile, PHEV registrations fell 40.5%, with just 169,699 units leaving showrooms. As a result, BEV sales were down by 29.7%, with 609,513 deliveries after two months of 2026. PHEV volumes suffered more, as the 390,576 tally was 37.9% down compared with the same period last year. Increased model diversity has impacted the popularity of 2025’s best-selling options so far this year. This also suggests the appetite for new EVs in China is starting to wane. Tesla leads the way in China The Tesla Model Y led China’s BEV market in February, with 25,136 sales in the month. The crossover SUV struggled in the second month of 2025, but bounced back this year, increasing 214% year on year. Tesla often prospers in the end-of-quarter months due to its reporting patterns. This result in February highlights the turbulence of the Chinese market. The Model Y accounted for 9.6% of all local BEV sales in the month, up by 7.7 percentage points (pp). Second was the Xiaomi YU7, which only began recording domestic sales in June 2025. The model was the most popular in China during January. However, its 20,086-unit tally in February was markedly down on this performance. It accounted for 7.6% of total BEV deliveries. The Li Auto I6 rounded out the top three. Another relative newcomer, it saw sales begin in September 2025. A total of 15,997 units made their way onto Chinese roads in February. China’s top three BEVs were split by an even amount of almost 5,000 units between each position. This contrasted with the dominance of the Xiaomi YU7 in January. The result suggests buyers may be looking around in a more diverse market. Last year’s leading models appear to be struggling, as the country’s market faces headwinds. Popular models struggle Tesla saw its Model 3 place in the Chinese top 10, taking fourth in the month. With 12,758 units sold, this was a 32% year-on-year slide. The US BEV was responsible for 4.9% of deliveries, and due to competitor declines, this was an increase of 0.6pp. Last year’s best-seller, the Geely Geome Xingyuan, only managed fifth in February, with its 11,906-unit total down by 58.4%. The model has seen a slower start to 2026, suggesting it may not be able to live up to its performance last year. Sixth was the Nio ES8, which saw volumes increase dramatically since September last year. Its 11,779 units marked a 2,359.1% increase compared to February 2025, while a 4.5% market share was up 4.4pp. A pair of BYDs followed, with the Dolphin seeing stable results in seventh. A total of 6,006 units represented a decline of 0.1%. In eighth was the BYD Seagull, which saw numbers plummet by 78.6%, as just 5,779 units were sold. Next came another pair of models, with the Wuling Bingo Plus seeing 5,263 sales, a 45.3% rise compared to the same point last year. Rounding out the top 10 was the Wuling Mini, the second-best-selling BEV in China last year. With 5,230 deliveries, volumes were down 76.3%. This was only good enough for a 2% market share, a drop of 3.1pp. Xiaomi proves popular February’s top three all featured in the top cumulative positions spanning the first two months of 2026. Thanks to its strong result in January, the Xiaomi YU7 led the way. With 58,010 sales, it held 9.5% of the market, a sizeable 14,802 units ahead of its nearest challenger. This was the Tesla Model Y, which started 2026 much stronger than last year. With 43,208 units, it represented 7.1% of BEV sales and ended the two-month period 10,335 deliveries ahead of third place. This position was taken by the Li Auto I6, recording 32,873 sales. It took a 5.4% share of the country’s BEV market between January and February. While these BEVs soared, both the Geely Geome Xingyuan and the Wuling Mini struggled. The Geely model took fifth after two months with 26,793 sales. Meanwhile, the Wuling Mini did not feature in the top 10, sitting 13th after two months of 2026. Fang Cheng Bao up top in China China’s PHEV market has been struggling for some time. However, while volumes were down year-on-year, there was some stability in model choice. For the second successive month, the Fang Cheng Bao Tai 7 led the way. The BYD subsidiary brand saw 11,078 units sold in February. It represented 6.5% of China’s PHEV volumes in the month. The BYD Song Pro took second, although its 9,307-unit total was 37.9% down year on year. While the domestic brand placed five models in the top 10 during the month, none of them managed to see volume increases. As a popular PHEV brand in recent years, this decline is likely contributing to the market’s struggles. Third went to the Aito M7, with the PHEV variant responsible for 3.8% of all deliveries, a 2pp rise. Its 6,479 sales were an increase of 24.5% compared to February 2025. BYD volumes plummet Both of last year’s top two models struggled in February. The BYD Qin Plus saw sales plummet 66.9% as just 5,252 units left forecourts. This was enough for a 3.1% market share, down 2.5pp. It was followed by the BYD Seal 6 with 5,159 deliveries, down 59.1%. A 3% hold of the PHEV total was down 1.4pp compared to 12 months prior. Sixth was the Zeekr 9X with 5,082 units sold, having only entered the market in September 2025. It also held a 3% market share. The Li Auto L6 was next. The medium SUV struggled in February, with its 4,746 sales down by 63.9% year on year. It claimed 2.8% of the market, a 1.8pp drop. Following it in eighth was the Wey Gaoshan. First recording sales in September 2023, its numbers started ramping up in the middle of 2025. Its 4,133-unit total was a jump of 1,105% compared to February 2025. Rounding out the table was another pair of BYD vehicles. The Song L suffered a 59.5% fall as 3,724 units were sold in the month. The BYD Qin L took 10th, with 3,603 units, a 77.8% fall in volumes. This was the biggest decline in the top 10. Close battle for PHEV models After leading the sales in both January and February, the Fang Chen Bao Tai 7 led the cumulative table. With 28,631 units delivered, it held 7.3% of the market, 10,251 units ahead of its nearest competitor. In second, after two months of 2026, was the Aito M7. It saw 18,380 units delivered in the period, taking a 4.7% market share. After a strong result in January, it slipped back towards the BYD Song Pro, which held third, but was only 423 units behind. The BYD model accounted for 17,957 units between January and February. This resulted in a 4.6% share of the market.
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BEVs provide return to growth in the French new-car market

After a difficult start to the year, the French new-car market returned to growth in spectacular fashion during March. Soaring battery-electric vehicle (BEV) volumes made this possible, but why did the technology see a significant increase? Tom Hooker, Autovista24 journalist, explores the figures. The new-car market in France returned to growth in March, marking the country’s first improvement since October 2025. According to the PFA, 173,634 units were registered in the month, an increase of 12.9% year on year. In part, the rise was boosted by an extra working day compared to March 2025. New-car purchases from individuals represented 46% of total volumes last month, with a 22% delivery increase, according to AAA Data. Within this sales channel, long-term leasing rose sharply. Deliveries to fleets suffered a 2% decline during March, while registrations associated with short-term rental companies climbed 19%. Despite this double-digit growth, the French new-car market recorded a 2.1% decline in the first quarter of 2026. According to AAA Data, 401,556 deliveries took place during this period, a loss of 8,528 units year on year. Similar to many major European new-car markets, the powertrain mix continues to shift towards electrification in France. BEV deliveries have soared, while hybrids are seeing more marginal year-on-year gains. But unlike the other big five markets, plug-in hybrid (PHEV) volumes have remained stagnant. This comes as both petrol and diesel registrations fell significantly. BEV growth provides lifeline BEV registrations soared 68.8% in March to 49,406 units, according to Autovista24 analysis. This growth provided a lifeline for the French new-car market. Without it, overall registrations would have fallen by 0.3% year on year. The figure presented the powertrain with a 28.5% share of overall new-car volumes, up 9.5 percentage points (pp) year on year. This was the largest market share of any in Europe’s big five automotive markets, reflecting a wider first-quarter trend. Behind the technology’s surging sales, many factors are having a positive impact on delivery volumes. ‘France’s strong increase in BEV registrations during March was mainly driven by the social leasing scheme. While the program reopened in late 2025, people who registered for the scheme are now taking delivery of their cars,’ outlined Ludovic Percier, senior residual value analyst for France. The scheme allows lower-income households to access BEVs through long-term rental contracts. These are provided at significantly reduced monthly costs, supported by the state. Monthly rental costs cannot exceed €200 excluding options, accessories and services. Some offers reach less than €140 per month. Factors assisting BEV demand ‘Other short and long-term factors have assisted demand. Since February 2025, BEVs have profited from a notable change to company-car taxation,’ Percier continued. ‘The technology faced a less severe increase in benefit-in-kind rates than any other powertrain. This makes them significantly more favourable compared to internal-combustion engine (ICE) vehicles, strengthening their appeal in the fleet market. ‘Furthermore, rising fuel prices have improved the comparative total cost of ownership of BEVs since March. However, this effect is minimal and is more linked to the used-car market,’ he commented. AAA Data also pointed towards the country's purchase and leasing incentives as a factor that has helped boost BEV volumes. Known as the ‘electric passenger vehicle boost’, the subsidy provides funds of between €3,500 and €5,700 when buying an electric vehicle (EV). Additional bonuses are available for vehicles where the battery is manufactured in Europe. At the start of 2026, the French government also raised the income ceilings defining the categories of modest households. This move means more families are eligible for higher grant levels. The industry body also noted that discounts offered by some manufacturers are helping BEV demand. From January to March, BEVs took a 27.9% share of overall new-car registrations. This was up from 18.2% during the same period of 2025. The technology enjoyed a 50.4% delivery increase to 112,083 units, according to AAA Data. Stagnant PHEVs Conversely, PHEVs faced a 2.2% delivery decline in March to 8,108 units, according to Autovista24 analysis. The powertrain took a 4.7% market share last month, down by 0.7pp year on year. PHEV volumes during the first quarter of 2026 were stagnant. Just eight fewer registrations were recorded compared to the same period last year, according to AAA Data. A total of 19,584 units ensured a 4.9% share, up 0.1pp. Combining BEV and PHEV figures, the EV market in France had a positive start to the year. Volumes improved by 53.2% in March, with its share increasing by 8.7pp to 33.1%. A 39.9% year-on-year improvement was seen in the first quarter, with 131,667 registrations. This equated to a 32.8% share, up from 22.9%. No growth in sight for ICE Internal-combustion engines, including petrol and diesel-powered models, had a weak March, suffering a 25.4% slump in deliveries year on year. According to Autovista24 analysis, the powertrain group accounted for 16.9% of new-car volumes in the month, down 8.7pp. Diesel performed particularly poorly, with a 31.2% drop to 4,448 units. This translated to a 2.6% market share, down from 4.2%. This made it the least popular powertrain in the new-car market, behind even the ‘others’ category. This powertrain group includes liquefied petroleum gas models, natural gas vehicles and super-ethanol cars. Petrol endured a 24.2% drop in March to 24,908 registrations. The fuel type made up 14.3% of overall volumes, down 7.1pp year on year. This means its market share was roughly half that of BEVs. In March 2025, petrol was ahead of the all-electric technology by 2.4pp. From January to March, deliveries of ICE-powered cars fell by 41%. The powertrain grouping recorded 68,507 registrations, with its hold on the market loosening from 28.3% to 17.1%. Broken down, diesel deliveries declined by 44.5% year on year, according to Autovista24 analysis. Its 10,067-unit total translated to a 2.5% market share, down 1.9pp. Meanwhile, petrol posted a 40.3% slump to 58,440 registrations. The fuel type represented 14.6% of total new-car volumes, down from 23.9%. The shares of both petrol and diesel models were the lowest among the major EU markets in the first quarter. This may be a factor in France’s decline across the three-month period. Hybrid’s double-digit growth Hybrids, including full and mild versions, enjoyed a double-digit delivery improvement in March. The powertrain posted 80,709 registrations in the month, increasing by 14.2% year on year. This enabled a dominant 46.5% market share, up 0.6pp, according to Autovista24 analysis. Hybrids accounted for 47.3% of the new-car market in the first quarter, an increase of 2.4pp from the same period in 2025. However, its growth was more marginal, up 3.1% to 189,904 units, according to AAA Data. Adding hybrids to the EV total, the electrified market recorded strong results in both March and the first quarter. Deliveries grew by 27.7% last month, as the powertrain group’s share rose from 70.3% to 79.6%. In the first quarter, volumes increased by 15.5%, while the group’s share sat at 80.1%, up 12.2pp year on year. The ‘others’ category did not enjoy the same success as electrified models. The powertrain group suffered a 3.7% drop in volumes to 6,054 units in March, according to Autovista24 analysis. Its share subsequently fell from 4.1% to 3.5%. Its first quarter result was more severe, as volumes slumped by 26.6% to 11,478 units. The category captured 2.9% of the new-car market in this period, down 0.9pp year on year.
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Electrified powertrains make important step in UK registration results

Electrified and internal-combustion engine (ICE) powertrains split the UK new-car market after the first quarter of the year. But after another month of improvement, is the country’s current growth sustainable? Autovista24 special content editor Phil Curry examines the market. The UK’s new-car market posted its strongest March result since 2019, as the country’s plate-change period helped boost overall volumes. According to the latest data from the SMMT, 380,627 new cars made their way to customers last month. This was an increase of 6.6% compared to 2025, equating to an extra 23,524 units, according to Autovista24 analysis. March is one of two important months for the UK market, the other being September. During these times, new registration plates are released, making deliveries more attractive. In March, new ‘26’ plates were released, with ‘76’ plates due in September. In 2025, March was the strongest month of the year, accounting for 17.7% of the annual registrations total. With the SMMT highlighting that current geopolitical changes are likely to impact the market, the same pattern may occur in 2026. Across the first quarter of the year, UK registrations are up by 5.9%, with 614,854 units delivered to customers. This is an improvement of 34,352 passenger cars, according to Autovista24 calculations. Record results in the UK March was the best month on record for electrified vehicles, according to the SMMT. This category includes full hybrids (HEVs), battery-electric vehicles (BEVs) and plug-in hybrids (PHEVs). A total of 196,059 units were delivered in the month, a 23.1% increase year on year. Electrified volumes were also above ICE figures for the first time this year. The UK reports its ICE figures differently from other markets. Mild-hybrid powertrains are merged with their respective petrol and diesel counterparts, rather than being included with HEV figures. The electrified market overtook the petrol and diesel group for the first time in September last year. However, it slipped behind once again at the start of 2026. March’s strong result may be the start of a period of dominance for the powertrain group. After three months of the year, electrified passenger cars had overtaken ICE, thanks to their performance in March. With 307,652 registrations, the group was just 450 units ahead of the combined petrol and diesel performance. This was enough for a 50% market share. BEVs continue to improve BEVs were the second-best-selling powertrain type in the UK last month. With 86,120 deliveries, they made up 22.6% of the market. The figure was a record total for all-electric registrations, with volumes increasing 24.2% compared to March 2025. March also saw the first year-on-year improvement in BEV market share of 2026. The technology’s hold rose by 3.2 percentage points (pp) to 22.6%. However, this was some way behind the required share in the zero-emission vehicle (ZEV) mandate. This is emphasised further by the powertrain’s performance in the first quarter of the year. Deliveries have improved by 14.5%, with 137,614 units taking to the road. However, the market share of 22.4%, while 1.7pp higher year-on-year, is 10.6pp below the mandated target. For 2026, vehicle manufacturers are required to ensure that 33% of their passenger cars registered in the UK are zero-emission models. Yet, the overall market has failed to meet the target in the first two years of the mandate. Calls for review into UK transition At the recent SMMT Electrified conference, chief executive Mike Hawes highlighted how the market had changed since the ZEV mandate was first proposed. At the start of 2026, battery costs were more than 30% higher than expected, according to the SMMT. Furthermore, the industry body said that industrial energy prices are around 80% above 2021 levels. Additionally, it also noted how public charging can cost over 140% more than five years ago.  Moreover, the SMMT has also highlighted that the current geopolitical situation, which is impacting oil prices, may spark interest in electric vehicles (EVs). Yet with a risk of higher energy prices and supply-chain costs, the increased cost of living could undermine consumer confidence. These geopolitical changes have added urgency to the automotive market’s calls for a rapid review of the ZEV transition. The SMMT has pointed to other markets, which have amended their plans to reflect current market realities. While the UK government holds firm, however, carmakers are having to invest heavily in both development and discounting to meet ZEV mandate targets. ‘Delays to a review of the UK transition will put the country in an uncompetitive position, undermining consumer choice, investment and, ultimately, the pace of decarbonisation,’ the industry body said in a statement. PHEV popularity grows While the debate about the electric transition continues, the UK’s PHEV market has been gathering strength. March saw the powertrain continue its run of strong results, with a 46.9% improvement year on year. This equated to 15,856 more units, based on Autovista24 analysis. In total, 49,671 units made it to customers in the month, giving the technology a 13% market share. This is up by 3.5pp compared to a year prior. The PHEV market has been boosted by the popularity of the Jaecoo 7, which hit the country’s market in February 2025. The Chinese brand has been building momentum, and was the most popular model in March. With 10,064 units registered in the plate-change month, it accounted for 20.3% of total PHEV deliveries. In the first quarter, PHEVs have seen volumes increase by 46.5% compared to the same period in 2025. With 78,666 units, this offered the powertrain a 12.8% slice of the market, up 3.6pp. Again, the Jaecoo 7 has helped this growth, with 19.8% of the PHEV market. The SUV held second in the best-seller table, behind the Ford Puma. Combining PHEV and BEV figures, the EV market saw a 31.7% rise in March, with 135,791 units. This was enough for a 35.7% market share, a rise of 6.8pp year on year. After three months, EV figures had improved by 24.4%, with 216,280 deliveries. The powertrain group took a 35.2% hold of total registrations. ICE remains strong While electrified models continue to see volume increases, deliveries of petrol and diesel cars suffered in monthly registration figures. Despite this, petrol remained the dominant force in the UK market during March. The fuel type saw 165,997 units delivered to customers, a drop of 6.1% compared to the same month last year. Having seen a rare increase in volumes during February, this result was a return to a regular trend of decline. Yet the powertrain still held 43.6% of the market. While this was a drop of 5.9pp, petrol remained 21pp ahead of its nearest challenger, BEVs. Registrations of petrol-powered cars declined by 3.5% in the first quarter, with 276,689 units. Despite this, the technology still held 45% of the market, a 4.4pp drop. Diesel popularity continued to wane, with March seeing figures fall by 11.4% to 18,571 units. This was only good enough for a 4.9% share of the market, down from the 5.9% recorded a year prior. Between January and March, diesel deliveries totalled 30,513 units, down 9.8%, equating to a share of just 5%. Combining the powertrains, ICE registrations dropped 6.7% in the month with 184,568 units. This was good enough for a 48.5% share of total deliveries, falling behind the electrified market for the first time in 2026. This means that after the first quarter, both ICE and electrified groups shared a 50% hold of the UK new-car market. With 307,202 registrations, the combined petrol and diesel grouping suffered a 4.2% delivery decline year-on-year. HEV pulls ahead in UK hybrid race HEVs continued to be the third-best powertrain in the UK during March. Its 60,268 registrations were enough for a 7.3% increase compared to the same period last year. However, its 15.8% market share was up just 0.1pp compared to March 2025. After the first quarter, the powertrain has seen a 6.2% rise in volumes, with 91,372 deliveries. This was good enough for a 14.9% slice of overall new-car registrations. Yet with stronger growth for PHEVs and BEVs, the powertrain’s market share only rose by 0.1pp year on year. The unit gap between HEVs and PHEVs has risen, thanks to the better volume total in March for full hybrids. But with plug-in hybrids increasing in popularity, the technology could close the gap in the coming months.
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The Automotive Update: Market conditions impact 2026 new EV forecast

As oil and gas prices rise, what effect will this have on global light-vehicle sales? Will electric vehicles (EVs) be able to take advantage of recent geopolitical changes? Autovista24 journalist Tom Hooker and special content editor Phil Curry explore the latest insights from Neil King, head of forecasting at EV Volumes, in the Automotive Update podcast. In this episode, the latest EV Volumes forecast is reviewed. Autovista24 special content editor Phil Curry provides insights from King, including a global EV market outlook alongside regional projections.  Subscribe to the Autovista24 podcast and listen to previous episodes on Spotify, Apple and Amazon Music. Global EV forecast downgraded With a quarter of 2026 having passed, the latest forecast from EV Volumes shows that growth in the global light-vehicle market will slow. Geopolitical developments mean deliveries could remain stable this year, while the share of EVs is expected to increase modestly. According to the latest data, combined sales of passenger cars and light-commercial vehicles will increase by just 0.4% globally this year. This is down from the previous update, which assumed a 2.7% rise in volumes across 2026. With increased living costs and the rising price of oil and gas, household purchasing power is being eroded. Companies are also being forced to delay investments, amid uncertainty over how long energy prices will remain elevated. This means vehicle renewal is being placed further down the list of priorities. EVs, including battery-electric vehicles (BEVs) and plug-in hybrids (PHEVs), are predicted to make up 24.7% of light-vehicle sales in 2026. This is down by 2.8pp compared to the previous forecast released at the end of 2025. In total, around 22.7 million electric models are expected to take to roads around the world. This would represent modest growth of just 5% year on year. This would outpace the projected overall light-vehicle growth in 2026. However, it would also mark a lower rise following the 21.9% gain in 2025. With governments in larger markets phasing out purchase incentives and tax breaks, a slowdown is likely this year.  The EV share is forecast to increase to 27.4% next year, then rise to 31.8% by the end of 2028. By 2030, EV Volumes predicts that this global share will rise to 40.4%, before hitting 61.1% in 2035, and reaching 80.6% in 2040. Slowing market in Europe The European automotive market has faced turbulent times recently. LCV demand was particularly affected by trade frictions and tariffs in 2025, with the passenger-car market following suit. In addition, continued political uncertainty and rising debt levels curtailed demand in the continent. A wide range of geopolitical changes have caused Europe’s light-vehicle sales forecast for 2026 to be downgraded. EV Volumes believes that light-vehicle sales in Western and Central Europe will rise by a modest 0.1% this year, a drop of 1.6pp against the December 2025 forecast. At around 15.1 million units, this is far below the 18 million light vehicles registered in 2019. Moreover, it is not expected that the European market will return to that level before 2040. The market is projected to improve by 1.4% in 2027. This increase hinges on a complex mix of regulatory and economic factors. A similar rise is expected in 2028. More to come from EVs This year, the EV market is expected to continue expanding, as Germany reintroduces incentives, while Spain also pushes forward with its Auto+ Plan. Additionally, Chinese carmakers are strengthening their footprint on the continent, appealing especially in price-sensitive markets. EV sales are expected to grow 16.7% this year to 4.7 million units, taking a 31.3% share of all deliveries. BEV volumes are forecast to grow 18.4% year-on-year, accounting for 69% of EV sales in 2026. Meanwhile, PHEV sales are expected to increase by 13%. With new model launches, lower prices, and tightening EU emissions targets, EV volumes will continue to increase in the coming years. The market share of EVs will sit at 37.4% next year, rising to 43.8% in 2028. The EU’s Automotive Package, which introduces a revised CO2 reduction pathway and compliance mechanisms, has altered the EV Volumes forecast. Assuming its full implementation, EVs are expected to account for 57.3% of light-vehicle sales by 2030. This rises to 84.2% by 2035, and reaches 95.5% in 2040. These projections assume emissions balancing between 2030 and 2032 and continued alignment of national policies. Several markets are expected to maintain stricter targets. The UK is currently committed to a new-car petrol and diesel ban in 2030, with zero-emission only sales from 2035. EV popularity struggles in Northern America In the Northern American market, 2025 sales were affected by multiple factors. This included the impact of EV tax credits ending in the US and manufacturers' decisions to amend plans for all-electric models. With new global inflation pressures and continuing weak vehicle demand in the region, EV Volumes forecasts that overall light-vehicle sales will decline 1.9% this year. In total, 17.8 million vehicles will be sold. Deliveries of EVs are also expected to drop by 8.1% in 2026. This comes as Canada has recently shifted its EV strategy, removing the 100% import tariff on Chinese-made models. Additionally, 49,000 units are now allowed to enter the market under a new arrangement. At the same time, the Electric Vehicle Affordability Program has been introduced in 2026 in Canada. The country has also seen stricter emissions standards replace the former EV sales mandate. These require carmakers to meet progressively tighter fleet‑wide pollution limits. In the US, California is exploring a new EV incentive program to fill the policy gap after federal EV tax credits expired in 2025. Some consumers have also expressed growing interest in more affordable EV options, including Chinese models that remain unavailable due to trade barriers. The combined BEV and PHEV share is now expected to reach 8.9% in Northern America in 2026. EVs in the US are expected to take an 8.7% hold, compared to a 10.2% share in Canada. The Northern American EV share will rise modestly to 10.1% in 2027. This will be mostly supported by Canada and the rollout of more affordable EV models. Shares will increase to 18.9% in 2030, then reach 37.7% in 2035, before rising further to 57% in 2040. This is well below the predicted global EV share of over 80% in that year. Domestic focus for China China’s automotive market saw PHEVs struggle in 2025, while BEVs continued to prove popular. The country’s government is focused on boosting domestic consumption, with support directed towards state-owned manufacturers. Yet with the March 2026 OECD Interim Economic Outlook projecting 4.4% GDP growth in the country, EV Volumes has downgraded its forecast. New light-vehicle sales are now expected to reach 27 million units, a 1.3% rise year on year. As the country pledges to reduce greenhouse gas emissions by 2035, many brands are continuing to launch PHEV and Extended Range Electric Vehicles (EREVs). This comes as BEVs are regaining momentum in China, bolstered by discounting strategies. As such, BEVs are forecast to account for 62.9% of EV sales in 2026, increasing to around 70% in 2030. In total, EVs are forecast to represent 50.2% of all light-vehicle sales in 2026, a 0.8pp drop from their 2025 share. This is projected to rise to 72.1% in 2030, before achieving an 84.7% share in 2035. In 2040, the EV hold is expected to widen to 91.1%. Policy plans in non-Triad regions With the increase in global energy and oil prices, the March 2026 OECD Interim Economic Outlook projects slower growth for major non‑Triad automotive markets. This includes countries such as Brazil, South Korea, and India. Alongside this, persistent energy‑price pressures are weighing more heavily on demand. Therefore, the light-vehicle forecast for 2026 has been revised down to growth of 1.1%. With various countries and governments implementing regulations and aid for EVs, the share in this market grouping will rise. Currently, it is estimated that electric models will make up 8.9% of the market in 2026. This would be a 1.8pp improvement from 2025. However, budget constraints driven by economic concerns may limit future incentives and/or tax breaks. Additionally, several countries have introduced, or plan to implement, new tariffs on imported vehicles. The EV share in the non-Triad region is projected to reach 17% in 2030, before increasing to 41.8% in 2035, and 76.8% in 2040. This means the combined EV share of non-Triad markets would surpass Northern America in 2034.
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Spain sees another month of high new-car market growth

The Spanish new-car market continues to impress, with genuine growth across the first quarter of the year. But as the country waits for new incentives, how are powertrains performing? Autovista24 special content editor Phil Curry examines the market. Spain’s new-car market continued its upward trajectory in March, with registrations increasing once again. Last month, 130,340 new passenger models took to the country’s roads, according to ANFAC. This marked an increase of 11.7% compared to the same month in 2025. Heading into this year, Spain had a lot of expectations placed upon it. This was because it saw the greatest year-on-year growth out of Europe’s ‘big five’ automotive markets in 2025. This includes Germany, the UK, France and Italy. However, some of the country’s performances in the first part of 2025 were based on inflated and unnatural market growth. This included vehicle replacements after severe storms and flooding in 2024. Yet deliveries continue to power ahead this year. ‘March once again demonstrates the strong state of the market. We surpassed 130,000 sales, a figure higher than the sales for the same month in 2019,’ highlighted Félix García, director of communications and marketing at ANFAC.  ‘Even if we were to remove the impact of the DANA storm from the March 2025 sales figures, the growth would be even greater. This makes us optimistic for the end of the year. If this trend continues, we would be at around 1.2 million sales for the year’ The strong results are even more impressive considering the confusion around the country’s electric vehicle (EV) incentives programme. The previous MOVES III scheme ended in December 2025, according to RACE. It is being replaced by the Auto+ programme under the Auto 2030 Plan, effective from January 2026, according to Spain’s Ministry of Industry and Tourism. While €400 million in funding has already been allocated, the scheme is yet to be implemented. So, drivers are buying EVs ahead of applying for retroactive funding. Despite the confusion surrounding EV incentives, March was the third consecutive month of overall new-car registrations improvement in Spain. The result means that after the first quarter of the year, 300,513 new cars have made their way to owners, a rise of 7.6%. BEVs drive market in Spain While buyers await the implementation of Spain’s new incentives, the impact on the battery-electric vehicle (BEV) market has been slight. In March, 11,861 new all-electric models made it to the country’s roads, a rise of 46.4% year on year. This was the best increase of 2026 so far, although only up on February’s improvement by one percentage point (pp). The result gave BEVs a 9.1% market share, increasing by 2.2pp compared to March 2025, according to Autovista24 calculations. The run of strong double-digit increases in the Spanish BEV market suggests there is still an appetite for all-electric models. Buyers can purchase now and retroactively apply for subsidies, and this seems enough to keep the market momentum moving. Across the first quarter of 2026, BEV deliveries increased by 41.6%, with 27,223* units making their way to customers. This translated to a 9.1% market share, an increase of 2.2pp year on year. The implementation of the Auto 2030 plan could trigger a short-term increase in BEV deliveries. This happened in early 2025, when Spain reinstated the previous MOVES III scheme. However, just like in 2026, the government extended the programme with retroactive eligibility. This helped to sustain demand that had already been building amid uncertainty over incentive continuity. PHEVs continue to impress Spain’s standout performance, in terms of volume growth, once again went to plug-in hybrids (PHEVs). With a 77.5% increase compared to March 2025, the 14,859 units recorded was the powertrain’s best total of the quarter. This represented an 11.4% share of total deliveries, a rise of 4.2pp, according to Autovista24 calculations. PHEVs have proven to be a popular choice in Spain. Deliveries continue to grow, as does the powertrain’s market share. The technology was the third most popular in March, after hybrid and petrol engines, while remaining ahead of BEVs. After three months of the year, PHEV registrations were up 74%, as 35,693 units left dealerships. This has given the powertrain 11.9% of the market, up 4.6pp compared to the first quarter of 2025. Combining BEV and PHEV deliveries, the EV market saw registrations rise by 62.2% in March, with 26,720 deliveries. This was good enough for a 20.5% market share. In the first quarter, the group saw volumes improve by 58.3% with 62,916 units. This presented EVs with a 20.9% market share, according to Autovista24 analysis. Hybrids rule in Spain Meanwhile, the hybrid market, made up of full and mild hybrid powertrains, continues to lead. In March, it was responsible for 47.5% of total registrations, a rise of 5.4pp year on year. In the month, 61,938 units were handed over to customers, a rise of 26.2%. This was the best performance of the year for the technology in terms of volume and growth. Between January and March, hybrid volumes grew by 18.6%, with 144,126 models delivered. This gave the powertrain a 48% hold of the market total, up 4.5pp year on year. Adding hybrids to the EV market, total electrified registrations totalled 88,657 units in March. This equated to a rise of 35.2% compared to the same period last year. After three months, electrified registrations totalled 207,041 units, an increase of 28.4%, according to Autovista24 calculations. Petrol declines continue While electrified registrations soared, March saw another month of declines for internal combustion engine (ICE) models. Petrol deliveries fell by 14.9% in the month, with 32,728 units delivered. This was the smallest percentage decrease of the first quarter, but still represented 5,738 fewer models, according to Autovista24 calculations. Despite the decline, the fuel type was still the second-best choice in the country, with a 25.1% market share. This alone was 4.6pp ahead of the combined EV market. In the first quarter, petrol registrations fell by 18.2%, with 71,794 deliveries. This was still good enough for a 23.9% market share, according to Autovista24 calculations. Yet the steep declines across the three-month period meant this share fell by 7.5pp. Meanwhile, diesel deliveries dropped 23.6% in March, although this was on a smaller volume of 4,705 registrations. The fuel type recorded its lowest market share in 2026, with 3.6%. This was down 1.7pp year on year. In the first quarter, diesel volumes were down 26.7%, with 11,931 registrations. The powertrain took a 4% share of the total volume in the period, a drop of 1.8pp. ICE gap closes in Spain Combining petrol and diesel, the ICE market struggled in March with a 16.1% fall, as 37,434 units made their way to customers. The technology recorded a 28.7% hold of the monthly total. However, this marked a drop of 9.5pp year on year, according to Autovista24 analysis. This share was 8.2pp higher than that of EVs. While there is a distance between the two powertrain groups, this gap has dropped from 24.1pp recorded in the third month of 2025. In the first three months of 2026, ICE registrations fell by 19.5%, with 83,726 combined deliveries. The technology’s share of 27.9% was 9.3pp down year on year. However, ICE was still ahead of EVs by 7pp. This gap fell from 23pp recorded after three months of 2025. An older fleet While the country waits for the Auto 2030 Plan to be implemented, there may be a natural push towards electrification. High oil prices are causing increased fuel costs in much of Europe, and Spain is no exception. This could impact the market. The country’s car parc is predominantly made up of older vehicles, which are less fuel-efficient. Should the situation continue, it could mean drivers look to swap their older models for newer ones. ‘What is already clearly having an impact is the increase in fuel prices, and it is affecting the weakest segment of the market. This is cars over 10 years old, which are less efficient and have higher running costs,’ commented Raúl Morales, communications director of dealership group FACONAUTO. ‘In fact, we estimate that if this situation continues over the next 12 months, these vehicles will face an additional fuel cost of around €4 billion,’ he outlined. Meanwhile, Spain’s Sustainable Mobility Law entered into force in December 2025, as reported by DLA Piper. This establishes a broad framework to promote low-emission transport. ‘Decarbonising is not just about electrification. Considering the age of the vehicle fleet, which has already reached 14.6 years, there is an urgent need to complement the demand-boosting strategy with the development of the national renewal plan,’ said Tania Puche, communications director at GANVAM. ‘This was contemplated in the Sustainable Mobility Law, which is already a month behind schedule,’ she concluded. *Editor's note: This article has been corrected since publication, with the number of BEVs registered in the first quarter 27,223, not 27,273 as previously stated.
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What drove unusual Chinese EV results in January?

Electric vehicle (EV) sales in China dropped dramatically in January, as the market started 2026 with a struggle. But how did different brands influence this result? Autovista24 special content editor Phil Curry examines the numbers. China’s EV market started 2026 in disarray. Battery-electric vehicle (BEV) and plug-in hybrid (PHEV) sales were down compared to January 2025, according to EV Volumes’ latest data. Additionally, the top 10 best-selling models for both markets were mixed, with newcomers spread throughout. BEV deliveries fell by 20.4% in January, with 346,798 units reaching customers. This was the lowest total for the technology since February 2024. Meanwhile, PHEVs suffered an even steeper drop of 35.6% to 220,867 sales. The country’s PHEV decline was a recurring theme throughout the last half of 2025. However, the drop in BEV volumes is new. This comes after sales growth slowed towards the end of 2025. The country’s market will be hoping January’s drop is not the start of an ongoing trend. Mixed BEV results The top 10 best-selling BEVs in China included five models that were not on sale in January 2025. To highlight the diverse mix, only one model from Tesla and BYD featured, respectively. Both brands appeared to struggle at the start of the year. Even last year’s best-selling BEV in China, the Geely Geome Xingyuan, dropped deliveries compared to 12 months prior. Instead, a slew of newer models took advantage of the BEV market’s slowdown, entering the top 10. The Xiaomi YU7 headed the Chinese BEV table in January. This model began recording sales volumes in June 2025. It achieved 37,924 deliveries in the month and gained a 10.9% market share. The YU7’s delivery figure was a record for a single BEV in January. Although the model itself achieved higher sales in December 2025. The Nio ES8 achieved second with 18,513 units sold. The carmaker has ramped up deliveries, and January represented its third consecutive month of five-digit figures. Its market share jumped to 5.3%, up from just 0.1% a year prior. Rounding out the top three was the Tesla Model Y. With 18,072 units, its sales declined by 29.7% compared to January 2025. This was also reflected in its market share, which dropped 0.7 percentage points (pp) to 5.2%. Newcomers storm BEV chart Since first recording sales in September 2025, the Li Auto I6 ended January in fourth with 16,876 sales. This equated to a 4.9% market share, a positive performance for a newcomer. Last year’s best-selling Chinese BEV, the Geely Geome Xingyuan, ended January in fifth, with 14,887 deliveries. This was a 47.1% year-on-year decline, and the model’s lowest monthly sales since it started recording sales in September 2024. Sixth went to the Aito M7, with 13,129 sales. This was a record amount and the model’s first foray into five digits since its launch in September last year. With 6,772 deliveries, the combined total of the MG4 and MG4 Urban took seventh. These models were relaunched in the second half of 205 in China and achieved a 2% market share in January. The only BYD model in the top 10 was the Dolphin, which saw sales increase by 25.9% to 5,859 units. Its 1.7% market share was up 0.6pp. Eighth went to the Wuling Bingo Plus with 5,632 deliveries, a 103.5% rise compared to January 2025. It achieved a 1.6% hold of the market, a full percentage point increase. Rounding out the top 10 was the Toyota bZ3X. The Japanese model made its top 10 debut, just nine units behind the Wuling BEV. With 5,623 deliveries, it achieved an equal 1.6% market share. Struggles for BYD and Tesla Both Tesla and BYD have been staples of China’s BEV market, but January’s figures could suggest a difficult year ahead. Although the Tesla Model Y placed well, its sales decline was the second successive January drop. Meanwhile, the US brand’s Model 3 ended the first month of 2026 in 43rd place, with just 2,030 units making their way to customers. For BYD, its Seagull model, a constant BEV top 10 finisher last year, ended January 2026 in 11th. With just 5,525 sales, this was its worst monthly total since its first appearance in the Chinese market in April 2023. Meanwhile, the Yuan Up was 14th with 5,495 units. This also marked its worst volume since debuting in March 2024. Looking at both brands’ EV sales, January was a poor month. BYD saw a 61.6% decline to 77,209 plug-in units, compared to 201,017 deliveries a year prior. Tesla saw 20,116 deliveries, all of which took place in the BEV market. This was a drop of 40.4% compared to the same period in 2025. Fang Cheng Bao leads the way BYD’s woes continued in the PHEV market, a sector it dominated in 2025. Last year, seven of the best-selling top 10 came from the Chinese carmaker. In January, however, just three made it to the chart, and none saw sales growth. Instead, it was the carmaker’s sub-brand, Fang Cheng Bao, that took the top spot with the Tai 7. The SUV, which began mass deliveries in September 2025, has been slowly climbing the PHEV table. It dominated January’s chart with 17,553 units and a 7.9% market share. Second went to the Aito M7, with 11,901 deliveries, a 41% rise year on year. This meant a 5.4% share of PHEV sales in China, up by 2.9pp. The BYD Song Pro led PHEV sales for the brand in January. Its share sank by 0.7pp to 3.9% as it took third with 8,650 units. This was the model’s worst monthly total since July 2021. The BYD Qin Plus was next, with 7,527 deliveries putting it fourth, with volumes down 49.8% year on year. This too was a new low, with deliveries not hitting these depths since January 2023. Another new model, the Zeekr 9X, took fifth with 6,594 units and a 3% market share. The model started deliveries in September 2025. Mixed results for PHEVs The Aito M8 was the sixth-best-selling PHEV in China during January, with 5,316 units delivered. The model first recorded sales in April 2025. Coming in behind was the Li Auto L6, with 5,030 sales. This was a year-on-year drop of 64%. The figure was the model’s lowest since it hit the market in April 2024. It was good enough for a 2.3% market share, down by 1.8pp compared to the same point last year. The Aito M9 took eighth, the brand’s second appearance in the January top 10. However, its 4,821-unit tally was 47.5% down compared to January 2025. This meant its market share slipped by 0.5pp, to end the month at 2.2%. The Wey Gaoshan came ninth. Having previously moved lower numbers, the model had a stronger end to 2025. It appears to have continued this run into 2026. With 4,813 sales, it managed a market share of 2.2%, up by 2.1pp. Rounding out the top 10 was the BYD Seal 6 with 4,666 sales. This was a drop of 67.8% and was the model’s second consecutive month of four-digit deliveries. It was also its lowest volume since it first recorded sales in May 2024. Compared to 12 months prior, its share of the market was cut in half to 2.1%.
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Is a UK ZEV mandate review imminent?

The UK’s zero-emission vehicle (ZEV) mandate is scheduled for review. But with other countries amending their policies, will the UK’s targets be amended sooner, or later? Autovista24 special content editor Phil Curry reports on SMMT Electrified 2026. The UK automotive industry needs a review of the ZEV mandate, otherwise it could fall behind in the electrification race. That was the main message from the recent SMMT Electrified conference. Held in London’s QEII Centre, the event brought together automotive industry executives, regulators and suppliers. They discussed the current state of the UK’s electric vehicle (EV) market. The conference followed shifting emissions policies in Europe and the dropping of mandated targets in Canada. Meanwhile, the UK Government remains committed to the ZEV mandate. This is despite overall battery-electric vehicle (BEV) registrations failing to meet the 2024 or 2025 targets. The cost of reaching targets The ZEV mandate calls on carmakers to meet an increasing share target of zero-emission models in their annual registrations. It first came into effect in 2024, with a 22% requirement for passenger cars. This increased to 28% for 2025, while the target is 33% next year. This increases annually, reaching 80% by 2030. However, the biggest jump in the requirement comes between 2027 and 2028, with a 14 percentage point rise in the target, to 52%. The Department for Transport (DfT) released a report on the morning of the conference. It highlighted that all carmakers had complied with the ZEV mandate in 2024. Manufacturers had used conversion flexibility, while also borrowing future credits, with some banked for future years. However, SMMT chief executive Mike Hawes highlighted the costs that the industry faced in meeting ZEV mandate targets. ‘Non-compliance is not an option, but compliance comes at a massive cost,’ he told journalists, including Autovista24, during a press conference prior to the event. ‘In the first two years of the mandate, carmakers have spent up to £10 billion (€11.6 billion) in discounting on BEVs. That is in addition to the billions spent on new products, new technologies, and so forth. SMMT chief executive Mike Hawes ‘In 2025, the average discount on a BEV model was £11,000. However, the payment for non-compliance to the ZEV mandate is £12,000 per model. Compliance comes with a tremendous cost, either in incentives, fines, or the need to purchase trading credits. ‘Therefore, while the DfT report shows that carmakers have met the requirements of the mandate in 2024, compliance does not necessarily mean that the mandate is deliverable,’ he stated. Further ZEV mandate challenges One issue impacting BEV uptake appears to be costs for consumers. The technology has long been touted as a more affordable alternative to petrol and diesel in terms of use. However, there is often a cost difference between charging domestically and using public plug-in points. In addition, the implementation of vehicle excise duty (VED) last year increased costs. A pay-per-mile scheme, known as eVED, for BEVs and plug-in hybrids was also announced in 2026. This is set to be introduced in 2028, at a point when the ZEV mandate target is set to jump. For carmakers, this could be a problem. The affordability of BEVs will be reduced, but the requirement for carmakers will leap forward. ‘Additionally, the flexibilities introduced last year will expire from 2029,’ added Hawes. ‘I do not know of anyone in the industry who thinks we will get to 80% of ZEVs by 2030. Beyond that, we still have a lack of clarity. ‘We have neither the regulation nor the certainty about exactly which technologies can be sold. But what we do know is the gap between ambition and demand is too great. The UK's attractiveness, not just as a market, but as a manufacturing location, evaporates. De-carbonisation, if we get this wrong, can mean de-industrialisation.’ Good intentions of the ZEV mandate Hawes stated that the UK’s automotive industry is committed to reducing emissions and working towards net-zero. ‘But sometimes, to reach a destination, you have to take a diversion. When the facts change, you have to adapt,’ he continued. ‘When the ZEV mandate was conceived, the world was a different place,’ Hawes stated. In line with statistics published by the SMMT during the event, he outlined that battery costs were 30% higher in 2025 than anticipated in 2021. Meanwhile, BEVs were 17% more expensive within the same timeframe. In addition, industrial energy costs were 80% higher than expected, Hawes stated. The costs of public EV charging at 50kW points were 120% higher than thought when the ZEV mandate was first discussed, he added. ‘We need it reviewed now and resolved now. Without change, the sector, the economy, mobility and decarbonisation itself are in jeopardy. So, government needs to be bold enough to lead the change to make sure that we have a system that is fit for the future,’ he concluded. Carmakers back early review The ZEV mandate issue remained a constant throughout SMMT Electrified 2026. Carmakers in attendance also backed the need for a review of the current strategy. ‘The ZEV mandate needs to be more aligned to where consumer demand is. Investment is so heavy in the market, then some of the vehicles sold will be loss-making. If you are in that scenario, and you are forced to increase supply as the ZEV mandate does, then that calls investments into question,’ highlighted Eurig Druce, SVP, group managing director at Stellantis UK. ‘If you cannot make a return on investment in a country, then the ability of a company to invest and create the growth that the government is looking for is absent. Therefore, we need to make some quick decisions, and a review next year is too late. We need a review now, to help us make the right decisions on investments,’ he continued. From left to right: Patrick McGillycuddy, managing director at JLR UK, Richard Finchett, deputy managing director at Toyota Manufacturing UK, Nicole Melillo Shaw, Managing Director at Volvo Car UK, Eurig Druce, SVP, group managing director at Stellantis UK But while development of BEVs continues, the route of discounting is not one that carmakers want to be going down. ‘We put a lot of investment into developing and building the advanced technology in BEVs. The last thing anyone wants to do is bring out a car with that much investment, and then start discounting from the beginning. It is unsustainable. So I think we need to make sure that we are allowing for demand to catch up with supply,’ pointed out Nicole Melillo Shaw, managing director at Volvo Cars UK. A different approach Patrick McGillyCuddy, managing director at JLR UK, further underlined the issue of confusion among consumers. ‘We have a very ambitious ZEV mandate, and then we have the eVED, which is proposed to come at a critical time in that journey,’ he said. ‘This causes confusion, and consumers will hesitate. Then we hesitate, and you get an uncertain environment. We produce most of our vehicles in the UK for global export, therefore we have to recognise that different parts of the world are moving at a different pace,’ he added. Ford Motor Company chair and managing director, Lisa Brankin, also brought up the issue during a candid fireside chat. ‘When it comes to a review, the government needs to consider the customer in two areas. They need to knock down the barriers to entry, but also understand and prevent confusing messages. ‘Last year, for example, we had the launch of the Electric Car Grant incentive scheme. That helped drive sales forward. But a few months later, there was the announcement of eVED. The two messages did not align, so the government really needs to be mindful of what it is saying if the end goal is electrification,’ she said. Failure from success Brankin also highlighted how the ZEV mandate directed focus away from Ford’s achievements in 2025. Instead, it suggested failure in the company’s performance, she explained. From left to right: Lisa Brankin, chair and managing director, Ford Motor Company, Katie Derham, host and broadcaster ‘Our sales grew by 20% in 2025, which was a great success. But we count it as a failure as we got to just under 24% of the fleet being ZEVs, when the target in the mandate was 28%. We are moving in the right direction, but not meeting targets,’ she stated ‘We have invested heavily in our facilities in Europe to build EVs, but we are having to discount heavily to meet targets. We may also be forcing people into vehicles that maybe they do not necessarily want, or maybe are not appropriate for them,’ she said. Brankin also pointed to the changes in other ZEV policies that have taken place around the world. ‘Canada has made a change, and our closest partners in the EU have already made adjustments. That was carried out in a matter of months rather than over a longer period. So, I would say to the UK government to get on with it, start the review, decide, and make the announcement this year,’ she continued. Government committed to 2027 ZEV mandate review Taking to the stage at SMMT Electrified 2026, Keir Mather MP, minister for Aviation, Maritime and Decarbonisation, spoke of the success of the UK’s EV market. He highlighted that the country had the largest BEV share of Europe’s major economies, as a result of ambition, partnership and investment. Autovista24 analysis shows that in 2025, the UK saw its BEV share reach 23.9%, with 473,348 units. While this share was higher than the 19.1% achieved in the closest market, Germany, the volume of BEVs was lower. In 2025, the country saw 545,142 units delivered. Mather also stated that the EV transition in the UK is being backed by tens of billions of pounds in public and private investment. But he acknowledged that the ZEV mandate is potentially a challenge for the industry. ‘Is [the ZEV mandate] ambitious? Yes, of course it is, and we as government are committed to giving you the tools you need to make it happen. The industry successfully complied with the 2024 target, using the flexibilities built into the mandate, and provisional 2025 data also looks promising,’ he commented. ‘We are committed to publish a review of the mandate early in 2027, and we are listening, and we are engaging with stakeholders across the industry.’ When asked about the potential for an early review, as called for throughout the conference, Mather stated: ‘Work on the review needs to begin this year. But early 2027, we feel, is the right point to make sure that we can see properly where the pressure points lie in this ZEV mandate and make sure that it continues to work for manufacturers.’
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Is Italy’s new-car market on the road to success in 2026?

As increased carmaker competition starts to make waves in Italy’s new-car market, February’s data revealed a strong start to 2026. But which brands and powertrains are pushing things forward, and can this relative prosperity continue? James Roberts, Autovista24 web editor, finds out. In February, 157,317 new cars were registered in Italy. This resulted in a year-on-year volume increase of 14.1%, according to ANFIA data. This ensured a third month of consecutive growth. Across the first two months of 2026, a total of 299,308 new cars took to Italy’s roads. This marked a 10.2% lift, helped by a strong showing from electrified powertrains. Despite volumes remaining below pre-COVID-19 pandemic levels, the market shows promise following a difficult 2025. EV sales prove strong in February February saw 25,151 new EVs, including battery-electric vehicles (BEVs) and plug-in hybrids (PHEVs), registered in Italy. This resulted in a significant 91.5% year-on-year uptick. There was little to split BEV and PHEV popularity in February. All-electric sales amounted to 12,541 units, while PHEVs accounted for 12,610 vehicles. Both powertrains captured 8% of the monthly market share, respectively. It was PHEVs that saw the biggest year-on-year volume increase, with 102.8% compared to February 2025. However, BEVs were not far behind, with a volume improvement of 81.3%. In the year to date, plug-in hybrids took a larger market share of 8.1%, up 4 percentage points (pp). This was accompanied by a 116.7% boost in registrations across January and February. BEVs, meanwhile, accounted for 7.3% of the market, a 2.3pp increase, with a 61.3% upswing. Combined, EV registrations in Italy made up 16% of the market two months into the year, a 6.5pp improvement. Italy’s EV popularity running on fumes? On the face of it, the year-on-year EV volume gains appear satisfying. However, February’s figures continued to be raised by the incentive programme rolled out in late 2025. All funds were claimed within 24 hours of the scheme going live, with consumers needing to apply before purchase. This influenced January and February’s latent EV bounce. For some industry observers, this is not enough to signal a meaningful tilt towards electrification targets. To continue EV market ascendency, and match larger European markets, wider, more sustained policy initiatives are being called for. ‘Electric [uptake] is growing, but we are still far from the averages of the large markets,’ outlined Roberto Pietrantonio, president of UNRAE. ‘Without a structural and stable strategy, Italy will lose competitiveness and appeal. Those who talk about the failure of the electric sector feed misinformation. The real challenge is to govern the transition with industrial vision and reform courage.’ UNRAE recommended three measures aimed at fostering a more robust path towards electrification. These included improving EV charging infrastructure network as well as hydrogen refuelling. Second, charging tariffs should be more consistent with wholesale energy prices. Third, structural reform of company fleet taxation, which is a major complicating factor for businesses. Cost deductibility, VAT deductibility, and less favourable depreciation rules mean Italy lags behind other major European markets, according to UNRAE. The organisation claimed that reforming these tax policies could encourage companies to renew and electrify fleets. This in turn would speed up the adoption of low and zero-emission vehicles. ‘Clarity is needed,’ UNRAE added. ‘Decarbonisation remains the goal, what is missing is regulatory stability and a multi-year strategy, as in the main European countries, to offer families and businesses a credible horizon.’ Italy’s market disruption Amid February’s relatively strong plug-in demand, one newcomer stormed into the top 10 best-selling model chart: the Leapmotor T03. This small urban BEV shook up the top 10 in February with 4,778 sales, confirmed by ANFIA data. Taking fourth in the month, the T03 sat just behind three top-selling models from the Stellantis stable. Across the first two months of this year, the all-electric model saw 5,727 units delivered to customers. This pushed it to seventh in the overall top 10, ahead of the Renault Clio, the Renault Captur, and the Toyota Yaris. More broadly, Leapmotor enjoyed a 2197.2% year-on-year registration increase in February. This meant that it jumped from 218 unit deliveries in February 2025 to 5,008 one year later. This year, the Chinese OEM‘s lineup in the country will include the T03, the C10 and the B10.   Last year, Leapmotor CEO Zhu Jiangming targeted global sales of one million units in 2026, Reuters reported. On top of this, he eyed four million annual transactions within a decade, with 60% coming from outside of China. It seems Italy is doing its bit to help achieve this goal. Non-domestic brand disruption continues As well as Leapmotor’s increased market influence, other non-European OEMs have started to make considerable waves in Italy. Following a strong start to the year, BYD saw another month of Italian new-car market gains. The Chinese manufacturer recorded 4,110 registrations in February. This was up from 1,349 sales one year prior, ensuring a 204.7% boost. Chery has emerged as a notable disruptor in Italy as well. Its Omoda brand enjoyed a 960.9% rise in registrations, leaping from 523 units in February 2025 to 2,960 one year later. Meanwhile, its sister brand, Jaecoo, saw deliveries increase by 266% with 893 cars sold. Italy’s hybrid domination prevails February saw hybrids account for over half the country’s new-car market. In all, 81,799 units, spanning full and mild versions, left forecourts. This considerable year-on-year volume increase of 33.9% as the powertrain took a 52% market share, up 7.6pp. This dominance was reflected two months into 2026 with 156,215 hybrids joining Italy’s car parc, enabling a 52.2% share. This suggests that hybrid popularity remains prevalent, with EVs struggling to make a dent. Continued hybrid appeal has pushed up the share of electrified registrations in Italy’s new-car market. Adding hybrid volumes to BEV and PHEV totals amounted to 202,427 vehicles across the first two months of the year. This underlined a year-on-year leap of 39.2%. It also provided electrified vehicles with 67.6% of the overall Italian new-car market. This was a considerable 14pp lift compared with the first two months of 2025. Hybrid figures have been the vanguard of this seismic demand for electrified powertrains so far in 2026. Removing hybrids from the electrified figures drops the share to just 32.3%. ICE drops but petrol still second best Internal-combustion engine (ICE) deliveries, including petrol and diesel volumes, continued a pattern of double-digit declines in February. The 42,518 combined sales meant a 14.7% fall and a 27% market share, down 9.1pp. Across January and February, this was reflected in an 18.8% slump and a 36.2% market share. However, despite this continued slide, petrol preference remains a key market force. Despite a 6.9pp year-on-year decline across January and February, petrol held the second-highest market share in Italy at 19.6%. The petrol share was 11.5pp ahead of PHEVs, and 12.3pp above BEVs, providing a further headache for electrification targets. As petrol peters out, diesel continues to fall drastically. February saw 10,603 new diesel vehicles reach customers in Italy. This signalled a 22.5% year-on-year unit drop, leaving the fuel type with a 6.7% market share, down 3.2pp. Including January and February’s figures, diesel sales reached 21,336. This returned a year-on-year volume slide of 19.5% and a market share of 7.1%, down 2.7pp. Despite this, cumulative diesel registrations trailed BEV sales by just 627 after the opening two months of 2026.  
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UK BEV market stalls in February as petrol picks up

In February, the battery-electric vehicle (BEV) share of the UK’s new-car market fell for the second consecutive month. Meanwhile, petrol saw a rare increase. But are there underlying factors playing a part in these performances? Autovista24 special content editor Phil Curry examines the figures. Last month, the UK new-car market saw its best February performance since 2004. In total, 90,100 passenger cars were registered, a 7.2% year-on-year increase, data from the SMMT shows. February is often considered one of the UK’s slower months, as buyers wait for the traditional plate-change period in March. But it was not all plain sailing. Nearly every powertrain saw registrations increase in the month, except diesel-powered cars and BEVs. While the internal-combustion engine (ICE) has been sliding for a while, the all-electric drop raises concerns about the electrification push. Demand across the market was driven by private registrations, which increased by 17.6% to 35,227 units. Fleet uptake improved by only 1.8%, although it held the largest overall volume of 53,506 units. BEV struggle continues The UK’s BEV market appears to be struggling. In February, 21,840 all-electric models left showrooms, a rise of 2.8% compared to the same period last year. The technology took a 24.2% market share, dropping by 1.1 percentage points (pp) as other fuel types outpaced the powertrain. It was the second consecutive decline in market share, at a time when mandated requirements are rising. However, it is too early to suggest that the market is going to struggle in 2026. Results in the first quarter of last year were influenced by the addition of vehicle excise duty (VED) from 1 April 2025. This makes for an uneven comparison, as many drivers likely pulled forward their purchasing plans to avoid the additional fees. There was also likely some push from carmakers to get models out. There will have been pressure to boost end-of-year figures and meet the UK’s zero-emission vehicle (ZEV) mandate requirements. February’s result means that across the first two months of 2026, 51,494 BEVs were delivered to customers, a 1.2% increase. However, the 22% market share was down by 0.8pp. For 2026, the ZEV mandate requires a fleet-sales target of 33%. This was already an ambitious requirement, given the country’s overall BEV sector failed to reach the 2025 28% requirement. Regulatory BEV impact Currently, the UK government is pushing hard for BEV uptake. Its Electric Car Grant incentive scheme provides discounts on certain all-electric models. A new advertising campaign, championing the benefits of BEV driving, is also running across the country. At the end of February, a charging point grant boost was announced by the government. This provided installation support to renters, flat owners, those without off-street parking and businesses. Up to £500 (€576) can be saved when buying a domestic charger, with the plans running until March 2027. This comes at a time when the cost of public charging, especially on rapid and ultra-rapid chargers, is increasing. According to data from the RAC, ultra-rapid chargers increased from an average of 78.06p per kW in January 2025 to 83.20p per KW in January 2026. Prices for rapid chargers rose from 79.75p per kW to 82.10p in the same period. BEVs have also been impacted by government regulatory changes. Alongside the VED implementation in April, there was the announcement of a ‘pay-per-mile’ scheme, known as eVED. Set to start in 2028, this news has done little to champion the technology’s affordability. ‘With year-to-date BEV market share at 22%, two-thirds of the 33% share mandated for 2026, March is set to be a pivotal month. Manufacturers have already invested billions in new models and discounts to drive demand, now with support from government’s Electric Car Grant, but circumstances have changed beyond expectation since the regulation was set,’ the SMMT outlined. ‘A holistic review of the transition is needed, and must be completed urgently as buyer confidence is anticipated to be weakened further amid plans to introduce eVED from 2028,’ it continued. Petrol powers forward For the first time since September 2025, registrations of new petrol cars enjoyed a year-on-year improvement. In February, 41,935 units were delivered, a rise of 5.2%. However, given the month’s low volumes, this equated to an increase of just 2,070 models. This meant the fuel type took a market share of 46.5%, down by 0.9pp compared to February 2025. This was a marginally lower drop than seen by BEVs. The strong month means that across January and February, petrol registrations increased by 0.7% to 110,692 units. This was enough for a 47.3% share of the entire market, down 2.1pp. The UK reports petrol powertrain figures differently from other major markets and the European industry body ACEA. It merges mild-hybrid (MHEV) volumes with their equivalent ICE counterparts. This can skew the results, with the market appearing to perform much better than other countries. In January this year, SMMT recorded 68,757 new petrol car sales, including MHEVs. Compared with ACEA’s pure petrol ICE total of 37,109 units, MHEVs made up 46% of the SMMT’s figures. Back in January 2025, this share was only 33.5%, the lowest percentage of that year. It does appear that the UK’s petrol market is reliant on MHEVs to prevent numbers dropping further. Yet it is still performing well compared to other markets. This is once again cause for concern, with the 2030 ban just four years away. PHEVs perform best The standout performance in February came from the plug-in hybrid (PHEV) market. With 10,438 deliveries, volumes rose by 43.5% compared to the second month of 2025. This was the 13th consecutive month of double-digit improvement, and the second to see improvement over 40%. This is a level of consistency that no other powertrain in the UK has matched during the same time. These results have allowed PHEVs to close on the full-hybrid (HEV) market in the UK. In February 2025, the gap between the two was 4,158 units. Last month, this was 1,369 units. However, it has been closer at times, as the powertrains compete. With its impressive volume jump, PHEVs took an 11.6% market share, up 2.9pp year on year. Across 2026 so far, the technology has seen a rise of 45.9%, with 28,995 units delivered. It is the only powertrain in the year-to-date chart to see a double-digit increase. Meanwhile, its 12.4% share jumped by 3.5pp. HEVs also saw growth. Registrations rose by 3.3%, with 11,807 deliveries made in the month. This equated to a 13.1% market share, down by 0.5pp. Between January and February, 31,104 HEVs left showrooms, a 4.2% increase. The technology’s market share remained stable, dipping 0.1pp. Diesel drags down ICE ICE registrations, bringing together petrol, diesel, and their respective MHEV powertrains, increased by 4.3% in February. This allowed the technology to take a 51.1% market share, a drop of 1.4pp. This was not helped by diesel’s decline in the month, as the powertrain posted a 3.8% drop, with 4,080 registrations. Meanwhile, electric vehicles (EVs), made up of BEVs and PHEVs, experienced a 13.2% improvement, driven by plug-in hybrids. Their share of 35.8% was up 1.9pp. However, it was also 15.3pp away from ICE. Towards the end of 2025, EVs had overtaken ICE deliveries, pulling ahead by 0.2pp in December. With BEV deliveries recently stagnating, lower PHEV volumes, and an apparent resurgence for petrol, EVs have a lot of work to do to catch up again. The same can be said for the electrified market. Adding HEVs to the EV mix, deliveries were up 10.4% in the month, with a share of 48.9%. This is the second month in a row that electrified volumes have fallen below ICE. The grouping beat the traditional powertrain grouping between September and December 2025. In the first two months of 2026, EV registrations were up 13.8% with a 34.4% market share. Electrified deliveries increased by 10.9%, with a 47.6% hold of the overall total. However, ICE deliveries continue to lead, with a 52.4% share, despite a 0.1% decrease in volumes.
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Should a slow start for the EU’s new-car market cause concern in 2026?

For the second consecutive year, the EU saw a fall in new-car registrations during January. But is this trend a reason for alarm in 2026? Plus, is the tide turning away from hybrid dominance towards a more electrified landscape? James Roberts, Autovista24 web editor, assesses the latest data. The EU’s new-car market kicked off 2026 with a year-on-year decline in January. A total of 799,624 new cars were registered across the 27 member states, according to Autovista24 calculations of ACEA data. This marked a 3.9% year-on-year decline, the second consecutive negative start to a year. In total, just 10 EU member states saw year-on-year increases in new-car registrations during January. The result brought an end to six months of consecutive growth, with the EU’s largest markets witnessing varying fortunes. Germany endured a troubled start to 2026 with a 6.6% slide in new-car deliveries. With 193,981 units registered, the EU’s largest market saw falls in all but two powertrain variants. Following a disappointing 2025, France followed suit with a 6.6% drop and 107,157 newly registered vehicles. Meanwhile, Spain eked out a 1.1% increase in volumes, with new electric vehicle (EV) incentives yet to find their feet. Italy fared the best of the ‘big four’ EU markets. It recorded a 6.2% volume increase, with 141,993 new cars taking to the country’s roads. This was boosted by a significant uptake in plug-in hybrid (PHEV) demand. Hybrid popularity reaching a peak? In 2025, hybrids, including both mild and full-hybrid versions, were the most popular new powertrain for drivers in the EU. January 2026 provided a continuation of the trend. However, this could change as the year develops. In total, 308,364 new hybrids took to EU roads in January. This equated to an upswing of 6.2% and 18,024 additional units. This strong start to the year ensured a new 38.6% market share high, up 3.7 percentage points (pp). Amid its overall January decline, Germany saw hybrid volumes drop by 1.8%. In total, 58,206 new models featured the technology in the month. This followed on from marginal growth in December. As the EU’s biggest new-car market, Germany sets the stage in terms of powertrain demand. The technology may have reached a natural peak in the country, as the tide shifts towards EV sales. For France, January brought stagnant hybrid demand, with a 0.1% year-on-year improvement. Conversely, Spain witnessed a 9% increase, while 74,422 new hybrids joined Italy’s car parc, capping a 24.9% boost. In total, 15 of the EU’s 27 nations recorded year-on-year hybrid gains. Following a year in the doldrums, Estonia registered the highest upswing at 158.3%. Bulgaria also saw triple-digit hybrid lift of 140%. Austria, Czechia, the Netherlands and Portugal all witnessed hybrid growth. However, Poland, the EU’s fifth-largest market in terms of overall volumes, saw a 17.2% year-on-year decline in hybrid registrations. Meanwhile, the country continued a trend of strong EV adoption, suggesting a shift towards fully-electric cars. Solid start to 2026 for EVs EV uptake, made up of battery-electric vehicles (BEVs) and PHEVs, appeared strong across the EU in January. However, this was measured against a comparatively low baseline 12 months ago. The plug-in share equated to 29.1% in January as a total of 232,971 plug-in models made their way to customers. This was up 6.9pp from 12 months prior. Breaking down the powertrains, 154,230 new BEVs made their way to EU customers in January, up 24.2%. This ensured a market share of 19.3%, up 4.4pp year on year. Meanwhile, PHEVs accounted for 9.8% of new-car volumes with 78,741 vehicles registered. This equated to a 2.4pp uplift. Volumes increased by 28.7%, the fastest growing of all powertrains. Breaking down EU EV uptake The EU’s largest markets underwent mixed fortunes in January when it came to new BEV adoption. Germany returned buoyant all-electric vehicle numbers in the month. In total, 42,692 BEVs were registered, a 23.8% year-on-year increase. This was coupled with a healthy 23% lift to PHEV figures, amounting to 21,790 units. This came as a new domestic incentive framework, retroactively available from 1 January, was rolled out. France saw a 52.1% increase in BEV registrations. In total, 30,307 battery-powered models reached customers. This was assisted by a combination of tax reduction, infrastructure support and regulatory incentives. However, this comes amid wider market declines. Fired by incentives, Spain proved a consistent BEV powerhouse in 2025. Despite measures changing at the end of last year, January was a good month. In total, 6,472 new BEVs meant a 29.1% delivery increase. Meanwhile, PHEV demand soared by 66.7% year on year, amounting to 8,740 units. Domestic industry bodies have urged for clarity regarding incentives, hoping to ensure the country’s electrification can continue in 2026. Poland continued its 2025 trend. January saw year-on-year BEV increases of 216.1%, the highest figure in the EU. This was achieved with 3,544 units. Coupled with this, Polish PHEV registrations jumped by 95.7%. Demand for these powertrains has been facilitated by the country’s NaszEauto incentives programme, which was launched in 2024. PHEV power proving important Of the EU’s major new-car market players, Italy saw PHEV popularity come to the fore in January. In total, 11,638 new models made their way to customers, up 134.2% year on year. Industry body UNREA highlighted an expanded range of models and an attractive tax framework as motivation for this healthy business. The BEV market saw a notable decline in the Netherlands, down 35.4% fall in January. However, the reverse was true for PHEVs. In total, 8,025 new plug-in hybrids left Dutch forecourts, ensuring a year-on-year boost of 49.1%. Austria also witnessed double-digit increases in both BEV and PHEV registrations in January, with 23% and 66.7% growth, respectively. This came despite there being no EV purchase subsidies in the country, as written by the European Alternative Fuel Observatory. Instead, a mixture of tax incentives and cash subsidies, plus a favourable approach to EV fleet support, helped boost numbers. Plus, a new electric mobility information platform called eMove Austria was launched in January. Despite a 4.2% drop in BEV volumes, Czechia enjoyed notable PHEV gains. In total, the country saw 850 units registered, a 32.6% uplift. ICE drifts into 2026 It is no small surprise that January saw internal-combustion engine (ICE) registrations continue to fall across the EU. Amid legislative changes to CO₂ targets, both new petrol and diesel interest have petered out across all major markets. Combined petrol and diesel registrations reached 240,539 units, signalling a 26.7% year-on-year volume decline. Coupled with this, the powertrain group captured 30.1% of the EU new-car market, a 9.4pp dive. This dwindling fuel type group remains a relatively strong market player. In January, ICE registrations exceeded combined BEV and PHEV volumes by just 7,568 units. The plug-in market share trailed petrol and diesel by just 1pp. With the narrowing gap, the coming months could see the EV market overtake ICE, signalling a shift in powertrain dynamics. In terms of new petrol registrations, 175,989 new vehicles took to EU roads in the opening month of 2026. This marked a 28.2% drop. Market share came out to 22%, down 7.5pp on 12 months prior. Five nations recorded petrol volume increases. Austria saw a 3.3% lift, while Estonia saw an eye-catching 248.8% surge. Yet this amounted to just 286 units. Diesel declined in 23 of the 27 EU new-car markets. January saw 64,550 new vehicles registered across the bloc. This marked a 22.3% year-on-year fall. Once again, Estonia saw triple-digit increases at 431.4%, as 186 new diesels found their way to customers.
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The Automotive Update: What does China’s slowing EV market mean for global sales?

What is happening in China’s electric vehicle (EV) market? How much is Uber investing in autonomous vehicle charging hubs? Can Europe build its own EV batteries? Tom Geggus, Autovista24 editor, discusses these points in The Automotive Update podcast. In this episode, Autovista24 analyses China’s slowing EV market and reveals the best-selling models in the country. Plus, how has Tesla avoided suspension of its dealer and manufacturer licence in the US? Subscribe to the Autovista24 podcast and listen to previous episodes on Spotify, Apple and Amazon Music. China’s slowing EV market Globally, China accounts for 59.1% of battery-electric vehicle (BEV) sales and 70.3% of plug-in hybrid (PHEV) deliveries. But despite dominating the figures, the country saw its total EV numbers struggle in December. Figures rose by just 0.5%, according to the latest data from EV Volumes. Despite total plug-in sales increasing between January and December last year, this was not helped by the country’s PHEV market. It experienced a run of monthly declines from July onwards. One reason for this poor performance was the decline of BYD. The brand accounted for 33.3% of total EV sales in China during 2025 and dominated the PHEV market. Yet its sales were down 9.9% across the year. However, with new players entering the PHEV market, 2026 will see more brand diversification. This could help boost figures, while new BYD models will also help impress buyers. BEV sales rose by just 4% in December 2025 following a run of double-digit improvements. China’s carmakers will be hoping this is not the start of a new trend, especially if the PHEV market continues to struggle. Tesla avoids suspension Tesla has avoided a 30-day suspension of its dealer and manufacturer license in California. This follows the brand halting its use of the term ‘Autopilot’ in its vehicle marketing in the state. The Department of Motor Vehicles adopted a decision that the use of the term is ‘misleading and violates state law’. This is linked to Tesla’s use of Autopilot to describe its advanced driver-assistance systems. Uber invests in autonomous charging Uber Technologies will invest more than $100 million (€84.9 million) into autonomous vehicle charging hubs, according to Reuters. The company will deploy DC fast charging stations at its fleet depots and other locations throughout priority cities. This is expected to begin in the Los Angeles Bay Area as well as Dallas, before hitting other hubs. Uber will also work with charge point operators to establish ‘utilisation guarantee agreements’. This will support the rollout of hundreds of new chargers in cities across the world. EV charging offer in the Netherlands Leasing provider, Ayvens, has launched a new EV charging offering. Ayvens Power promises customers in the Netherlands access to over one million charging points across Europe, spanning different operators. Drivers will get real-time availability and pricing details before arrival. Meanwhile, a fleet portal will provide charging insights, cost visibility and reporting tools. The solution is due to roll out in France, Germany, Italy, Belgium, and the UK later in 2026. Can Europe build EV batteries? Yann Vincent, CEO of the Automotive Cells Company (ACC), has questioned who will make batteries for Europe’s domestic carmakers. ‘One crucial question remains: who will manufacture the batteries for European cars?’ Vincent asked. ‘Asian players, particularly Chinese giants, as is already the case for 99% of them? At the risk of putting the strategic independence of European car manufacturers solely in the hands of BYD, CATL, LG, etc?’. The CEO also confirmed that the ramp-up of ACC’s gigafactory in Hauts-de-France is taking longer and costing more than expected. This is weakening the company’s financial position. He also stated the goal of building the factory was ‘too close to give up on.’

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