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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.
| Dealer

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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.
| Dealer

News

What is an infotainment system?

Technological advances have rendered older in-car entertainment systems effectively obsolete. Now, carmakers combine entertainment and information as a central point of interior design. Autovista24 special content editor Phil Curry examines the rise of the infotainment system. The rapid development of technology has replaced in-vehicle cassette and CD players with new systems. While music streaming meant losing bulky radio units, the need to display more driver information required bigger screens.   By combining information and entertainment, the infotainment system has been a step forward for interior vehicle design and functionality. These systems are now a staple of modern cars, but some developments have been a cause for concern.  https://youtu.be/yVLCP0bfm-0 Growth of the infotainment system  With the development of touchscreen technology, integrating displays into vehicles for data and control access is a logical step. These screens provide more than just music playback. They also offer access to a wide range of systems.  These displays can provide navigation, views from external-facing cameras, as well as battery charge and health in electric vehicles (EVs). Many also feature Bluetooth connection for calls and smartphone integration. This allows users to bring their own music, apps and personal settings into the car.   Meanwhile, the infotainment system can act as a control location for certain vehicle functions. Menus and sub-menus provide detailed access to advanced driver-assistance systems (ADAS), vehicle customisation, driver profiles, and more.  Some carmakers have even opted to reduce or remove physical buttons for certain systems. This produces a cleaner and sleeker interior design, but can also lead to potential safety issues.  Are screens a distraction?  The ability of an infotainment system to house various vehicle controls can free up space inside a car. However, with some controls buried in sub-menus, out of easy reach of the driver, there are concerns around distraction.  Climate control, driving profiles, heated seats, and regenerative braking levels in EVs can be reduced from physical to digital buttons. But searching for these settings on a touchscreen can mean less focus on the road.   Research published by  TRL, on behalf of safety charity IAM Roadsmart in 2020, highlighted these concerns. Findings showed that driving performance was more negatively impacted when using touch controls compared with voice control.   Study participants were able to keep their eyes on the road more when using voice control than touch control. They were also more likely to identify stimuli that required attention. Despite this, most participants in the study reported using touch rather than voice control in their real-world driving.  Ensuring infotainment system safety  The concerns over driver distraction have led to Euro NCAP making a button-based request of carmakers for 2026. The safety body is asking manufacturers to either offer physical controls or dedicate a fixed portion of the cabin display to primary driving functions. This includes the horn, indicators, hazard lights, windscreen wipers and headlights.   So, the road ahead looks to be a matter of balance when it comes to infotainment systems. The technology will still need to support an increasing number of vehicle capabilities while also meeting higher consumer expectations. However, this will need to be levelled with control accessibility and driver attention.   
| Government

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Have fears of an EU new-car market slump eased?

A challenging start to the year for the EU’s new-car market was tempered in February. However, a return to growth was offset by a wider slowdown. So, which countries and powertrains enjoyed growth? Autovista24 web editor James Roberts investigates the latest data. In February, the EU’s new-car market returned to growth. According to ACEA, a total of 865,437 new passenger cars were registered. This equated to a volume rise of 1.4%, following on from January’s 3.9% decline. Two months into 2026, the EU new-car market fell by 1.2% overall. A total of 1,664,680 new units were registered across member states. Regional new-car market growth In total, 20 nations witnessed new-car market growth in February. Of the big four EU markets, Italy enjoyed the most significant improvement at 14%. This was underpinned by a significant electric vehicle (EV) volume increase, including battery-electric vehicles (BEVs) and plug-in hybrids (PHEVs). The latent impact of 2025’s incentives played a sizeable part in this trend. Spain’s new-car demand continued to prove positive, albeit slightly muted compared with previous months. Buoyed by continued strong EV demand, overall volumes increased by 7.5% year on year. Meanwhile, the bloc’s largest market, Germany, returned a solid 3.8% market growth in February. France continued a distinctly negative trend. Despite relatively strong increases in BEV deliveries, registrations fell across hybrid, petrol and diesel variants. This dragged the market to a sizeable 14.7% decline. Poland continued its EV-driven trend of prosperity. The EU’s fifth-largest market enjoyed a 6% upswing. In percentage terms, Estonia has rebounded from significant declines in 2025 to an 82.4% lift in its new-car market fortunes. This meant 1,138 new cars were delivered in February. Other notable slumps occurred in the Netherlands, which witnessed a 19% dive in new-car deliveries. This was triggered by a double-digit drop in petrol and BEV figures, as hybrid registrations also dipped. However, this can be skewed by the country’s relatively large company car market. Neighbouring Belgium saw deliveries fall across all powertrains except petrol. This resulted in a 7.7% year-on-year slide as the country’s market continued to decline. PHEVs proving popular in EV push Total new EV registrations, combining BEV and PHEV volumes, amounted to 242,052 in February. This ensured a 28% share of the overall EU market, up 5.2 percentage points (pp), according to Autovista24 calculations. BEV registrations in the EU increased by 20.6% with 158,280 units leaving dealerships in the month. In total, 22 nations saw all-electric registration increases. This resulted in all-electric cars accounting for 18.3% of all new-car deliveries in the EU, an increase of 2.9pp year on year. Meanwhile, PHEVs accounted for 9.7% of the overall EU new-car market. This was enabled by a sizeable 32.1% volume increase compared with February 2025. ACEA stated that the powertrain’s popularity underlines ‘the importance of a technology-neutral pathway to decarbonisation.’ In some of the EU’s largest markets, PHEV demand helped boost overall plug-in totals. Italy led the way in February with triple-digit PHEV increases amounting to 101.7%. This was coupled with a healthy 81.3% surge in year-on-year BEV demand. This trend was echoed in Spain. Amid a new national incentive framework, PHEV popularity increased 75.2%, while BEVs improved by 45.4%. However, local industry bodies exercised caution when considering the longer-term impact as new legislation takes shape. New purchase incentives in Germany seemingly boosted the overall market in February. The EU’s bellwether market saw BEV and PHEV volumes grow by 28.7% and 24.5% respectively. EV uptake in France exposed the nation’s wider new-car market contradictions. Despite a 27.8% increase in BEV volumes and a 3.2% lift for PHEVs, the wider market fell thanks to lower internal-combustion engine (ICE) deliveries. Denmark’s new-car market BEV boost February saw Denmark consolidate its position as an EU BEV market leader. The country saw 9,736 new BEVs take to the country’s roads, according to ACEA. Conversely, its PHEV volumes declined by 60.9%. Hybrids, made up of mild and full-hybrid powertrains, took at 19.8% tumble, and petrol plummeted by 72%. Despite this, the overall new-car market grew by 2.8%, suggesting that, unlike other markets, BEV growth can support wider market prosperity. Poland continued to return impressive EV numbers in February. BEV volumes increased 12.9% year on year, while PHEVs improved by 90.3%. The country’s NaszEauto incentives programme has boosted registrations since 2024. The sustained growth of the sector explains the relatively low double-digit year-on-year increases in February, after triple-digit monthly trends. Despite being a smaller EU new-car market, Croatia recorded notable EV growth in February. The country’s BEV sector witnessed a 217.7% surge, while PHEV popularity increased 140%. Overall, the country saw year-on-year gains of 14.7% with 4,869 units registered. EU hybrid hegemony continues in February In the month, 334,791 new hybrid vehicles took to the EU’s roads. This marked a 10.1% year-on-year upswing, plus a dominant 38.7% market share, up 3pp. Adding hybrid volumes to BEV and PHEV registrations provided a total electrified vehicle figure of 576,843 passenger cars. This secured 66.7% of the EU new-car market in February, an increase of 8.2pp Germany, Italy and Spain all saw hybrid delivery growth in February. Most notable was Italy, where 81,799 new passenger cars underpinned a year-on-year uplift of 33.9%. In the year to date, Italy boasts the highest number of new hybrid registrations at 156,215 units. In France, a lacklustre month for hybrids added to overall new-car market volume woes. Despite the EV volume rise, the nation’s hybrid market contracted by 7.2% with 57,670 deliveries. Aligned with significant falls in ICE uptake, this is harming overall growth. ICE versus EVs In February, total new ICE registrations, combining petrol and diesel models, reached 270,276 units. This continued a trend of decline with a volume drop of 16.6%. Accordingly, a year-on-year market share fall of 6.8pp to 31.2% followed. Two months into 2026, the overall petrol and diesel market share stood at 30.6%. This was 1.9pp above the EV share. At the end of January, the gap was just 1pp, suggesting the electric market will have to push hard to overtake ICE this year. In February, petrol remained a resilient new-car choice. The fuel type held on to a 23.1% market share, albeit down 5.4pp. This was despite a sizeable 17.9% volume decline. This was still the second-best-selling powertrain in the EU, with 199,910 deliveries. In total, 10 nations saw year-on-year increases in new petrol car registrations. Meanwhile, new diesel registrations in February amounted to 70,366 passenger cars across the EU. This signalled a 12.8% fall, securing an 8.1% market share, down 1.3pp. The fuel type saw year-on-year declines in all but 11 member states.
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The Automotive Update: The changing fortunes of Chinese and European EV markets

How did the Chinese and European electric vehicle (EV) markets perform at the start of 2026? Plus, which manufacturers are speeding up plug-in vehicle charging? Tom Hooker, Autovista24 journalist, presents the latest episode of the Automotive Update. In this episode, Autovista24 looks at the varying performances of the Chinese and European EV markets. Plus, how are carmakers speeding up EV charging? Also, an insight into which manufacturers are turning to robotics and AI for use in their production lines. Subscribe to the Autovista24 podcast and listen to previous episodes on Spotify, Apple and Amazon Music. China sees EV struggles China’s EV market recorded a decline of 27.1% in January, according to the latest data from EV Volumes. Both the plug-in hybrid (PHEV) and battery-electric vehicle (BEV) sectors saw sales decline year on year. The results were reflected in the best-seller tables, where mainstream models struggled. The Xiaomi YU7 was the leading BEV in January, with a dominant display. It  was some way ahead of the second-placed Nio ES8. The Tesla Model Y finished third. Meanwhile, the PHEV table saw BYD dominance slip away. Leading the charge was the Fang Chen Bao Tai 7, a BYD sub-brand and model. It was ahead of the Aito M7, while the BYD Song Pro finished third in the month. Europe’s EV market on a high Conversely, Europe’s EV sales grew, according to EV Volumes data. Sales were up 19.2% overall in January, with both BEVs and PHEVs seeing increases. PHEVs posted a 33.5% rise, while BEV deliveries increased by 12.7%. The Skoda Elroq was Europe’s best-selling BEV in January. It was followed by the combined results of the Renault 5 and Alpine A290, with the Tesla Model Y in third. In the PHEV market, two Chinese models led the way. The BYD Seal U came first, ahead of the Jaecoo J7. Both PHEVs were well ahead of the Volvo XC60 in third place. Even faster battery charging The Denza Z9GT, a model from BYD’s premium marque, is set to arrive in Europe later this year. It could enable quicker charging times of up to 12 minutes. According to Denza, the Z9GT delivers a 10% to 70% charge in only five minutes, and a 10% to 97% refill in just nine minutes. The carmaker also quoted a 20% to 97% recharge in 12 minutes, even in temperatures around -30°C. Meanwhile, Chery has revealed its all-solid-state battery that can achieve a range of over 1,500km, Electrek reported. A robotic future? Renault is using an AI-trained humanoid robot, called Calvin, to help it build cars. It was developed by French robotic firm Wandercraft. Renault plans to roll out a further 350 humanoid robots over the next 18 months, according to Auto Express. This comes as carmakers increasingly identify automation and robotics investment as a key response to rising costs and competitive pressures. A recent survey by ABB robotics revealed that 31% of vehicle manufacturers and suppliers felt this way.
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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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The Automotive Update: Carmakers accelerate AI applications at CES 2026

Which carmakers and technology companies are betting big on artificial intelligence (AI), and how do they plan to use it? Autovista24 editor Tom Geggus picks out key talking points from this year’s CES in The Automotive Update podcast. Major automotive companies are integrating AI into their vehicles. This means technology companies such as Nvidia are becoming integral partners in this seismic industry shift. However, they are not alone, as automotive suppliers are looking to keep up. Subscribe to the Autovista24 podcast and listen to previous episodes on Spotify, Apple and Amazon Music. Mercedes-Benz leans into AI with Nvidia Mercedes-Benz used CES 2026 to confirm that the new CLA will feature the AI-powered Mercedes-Benz Operating System (MB.OS). This advanced driver-assistance(ADAS) technology is powered by Nvidia’s full-stack drive software, AI infrastructure and compute power. This could assist over-the-air updates (OTA), including planned upgrades to the MB.Drive drive-assistance technology. This is aimed at enabling advanced SAE Level 2 capabilities in complex urban settings.  https://www.youtube.com/watch?v=_tJMYyVaOSw Mercedes-Benz confirmed its electric GLC will utilise MB.OS, as well as AI from Microsoft and Google in its infotainment system. The model is set to arrive in the US in the second half of this year.  ‘As the automotive industry embraces physical AI, Nvidia is the intelligence backbone that makes every vehicle programmable, updatable and perpetually improving through data and software,’ said Ali Kani, vice president of automotive at Nvidia. Nvidia is also working on a collection of open-source AI models called Alpamayo family, designed to accelerate autonomous vehicle development. Plus, the company announced that its Drive Hyperion ecosystem will expand to include more automotive companies. This comes as it embraces advanced SAE Level 4 and full self-driving technology.  Afeela and AI assistants Sony Honda Mobility brought a new vehicle to CES 2026, the Afeela Prototype 2026. A production version of the model could launch in the US in 2028. Its predecessor, the Afeela 1, has been available for reservations in California since January 2025. https://www.youtube.com/watch?v=tMkmiZS0brQ Delivery hubs are set to open this spring in the US state. Arizona will see sales in 2027, with Japan due to see deliveries in the first half of that year. Sony Honda Mobility also unveiled the Afeela personal agent, an interactive, conversational AI. It will use Microsoft Azure OpenAI to provide personalised dialogue.  BMW gave a demo of its AI-powered personal assistant. Built on Amazon’s Alexa+ technology, the assistant was presented within the Neue Klasse debut model, the BMW iX3.  Users can interact with the car’s large language model to control in-vehicle operations. The assistant also has access to information beyond the car, allowing it to answer a broad range of questions. This technology will be gradually rolled out in Germany and the US in the second half of 2026.   https://www.youtube.com/watch?v=3JQu-H-iJqg Ford also announced it will roll out an intelligent assistant. It will be available on users’ phones before it reaches their cars. The Ford and Lincoln apps will support the technology beginning in the first half of this year. The carmaker said it plans to reach up to eight million customers.  The Ford AI Assistant promises to be capable of providing contextually useful information, such as vehicle storage capacity. This technology looks set to arrive in Ford and Lincoln vehicles by 2027.    Source: Ford Architecture and autonomy Geely brought its full-domain AI 2.0 to CES 2026. This unified vehicle-wide architecture utilises a central intelligence engine, capable of operating all vehicle functions. The autonomous driving system, Geely Afari Smart Driving, uses AI and large-scale real-world driving data. It features high-performance sensors, plus hardware for confident and safe driving.  ‘AI is reshaping the automotive industry in many ways, from powertrains and components to a systematic reconstruction of mobility ecosystems and lifestyles,’ said Jerry Gan, CEO of Geely Auto Group. Lucid confirmed a union with Uber and physical-AI company Nuro to produce vehicles for a global robotaxi service. Autonomous on-road testing began in December, ahead of an expected launch in the San Francisco Bay Area later this year. Source: Lucid Suppliers starring at CES Bosch showcased an all-in-one, personalised, AI-based cockpit. Life-like communication appears possible via large language model. Meanwhile, a visual language model can interpret what is happening inside and outside the vehicle.  Qualcomm confirmed it is working with ZF to deliver scalable ADAS solutions. Leapmotor’s D19 will use Qualcomm’s Snapdragon Elite platform. It combines cockpit, driver assistance, body control and connectivity into one system. The supplier also plans to expand its collaboration with Google to develop software-defined vehicles while accelerating in-vehicle, agentic AI technology.   ‘As the automotive industry rapidly evolves into an AI-powered, software-defined future, our continued collaboration is more critical than ever,’ said Patrick Brady, vice president, engineering at Google. LG’s Mobility Display Solution turns the windshield into an intelligent interface. The Automotive Vision Solution enhances safety and delivers context-aware information via Vision AI.  The In-Vehicle Entertainment Solution provides personalised content recommendations, memory-based media, plusreal-time translation.  ‘We are bringing our future mobility vision to life by embedding AI across our solutions – many of which, including in-cabin sensing, are already in production with global OEMs,’ said Eun Seok-hyun, president of the LG Vehicle Solution Company. ‘By accelerating these innovations to market, we aim to pioneer the era of AI-driven vehicles in the years ahead.’
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Can carmakers steer towards a successful 2026?

What has defined 2025 for carmakers? Will these trends continue into 2026? Enterprise sales director Thomas Luxenburger considers the upsides and downsides with Autovista24 editor Tom Geggus. What do you think the big trends have been for OEMs in 2025? We need to distinguish between the established OEMs and the newer players, including those trying to strengthen their position. Established carmakers are struggling with declining margins as they lose market share, particularly in former emerging markets. In China, there is fierce competition between importers and domestic brands, which means lots of pressure on margins. Established brands have been losing local market share, resulting in smaller margins. This means these companies have less money to invest back into development. The timing could not be worse, as these brands need to put money into the electric vehicle (EV) transition. Carmakers are also at the forefront of more protectionist politics and policies, such as tariffs. There has also been increased supply chain tension this year, impacting chips and rare earth metals. To remain competitive, companies are looking to balance the books elsewhere. This can include experimenting with direct sales models or monetising software and services. They have also looked to cut staffing and production costs, with manufacturing moved to more affordable locations. Carmaker competition So, new-car markets have seen increased competition this year. How has this impacted pricing, operational strategies and future products? In terms of development, established players have historically needed up to seven years to bring a new model to market. Meanwhile, new players can develop their cars much faster. Software-defined vehicles take far less time to launch and often cost less. This is pushing established OEMs to accelerate their development process and bring more affordable vehicles to the market. Think just about earlier generations of battery-electric vehicles (BEVs), established brands offered these at a higher price point. These models have now entered the used-car market and have changed hands once or even twice. But their residual values (RVs) are under pressure from a higher cost-new price. But now, established brands are under more pressure to increase new-car sales volumes, which means investing in more affordable cars. This means a lower list price between €20,000 and €30,000. Direct sales model hype? You mentioned direct sales models earlier. What have carmakers learnt about these systems in 2025? Following the COVID-19 pandemic, there was a lot of hype for carmakers to do everything by themselves. Some set up a flagship store in a big city and thought brand awareness would secure the business. But now perspectives on that approach have changed. Previously, I was surprised that a country like Germany did not see larger dealer groups investing in the market from abroad. However, nowadays there is a very different landscape with much larger groups acquiring medium-sized dealers. Additionally, dealers are quite open to new logos and Chinese brands. This is a totally different situation with larger dealer groups becoming increasingly important and having even greater influence. Meanwhile, new brands are battling each other to acquire their interest. In this landscape with margins under pressure, direct sales are being considered as an opportunity for OEMs. Premium brands could run direct sales models, but mass market ones might struggle more. For these carmakers, having dealer groups in the field and closer to the customer is more advantageous. This is because the risk is carried by the dealer, not the carmaker. If the current socioeconomic situation were more stable, the direct sales model would probably be more advanced. Affordable all-electric cars Carmakers have been looking to affordable BEVs to stay competitive. Do you think this trend will continue? The benefit of my job is getting to see cars at an early stage, so we know what is coming down the pipe. There is obviously an appetite to bring more affordable cars into the market. Also, battery chemistries and technologies are advancing, making it possible to reach target groups at a lower price point. In the coming years, we will see more affordable cars for commuting in urban areas. Even so, carmakers still need to earn money to justify the investment in affordable models, and only volume will cover this. To reach optimum volumes, there must be marketing, with advertising to reveal this new generation of cars. The price point for mobility is the key. Consumers will need to ask themselves what they really need in the day to day. Is a 500km BEV necessary for urban commuting, or would a solar panel and a home charger make more sense? But the used-car market is going to play an important role in the future. In the future, internal-combustion engine cars and affordable BEVs will compete in this space in terms of price attractiveness. I think OEMs need to think about a second or a third used cycle. This means supporting dealerships with the likes of a subscription model for used BEVs. Away from the new car market, this would be a new approach for the powertrain. This would certainly help while registrations continue to recover from a turbulent few years. Commercial vehicle connection What about the light-commercial vehicle (LCV) sector, where the electric transition seems far slower. Could 2026 be the year this changes? I would hope so. You know me, I am LCV addicted. I spoke with some of our colleagues to get their electric LCV adoption forecast, and it will take time. We will not see a significant move in 2026. Change will maybe start in 2027 until the end of the decade. I think it will take much more time beyond 2030 for potential customers to become fully aware of the powertrain. But I do know OEMs that have not previously offered electric LCVs and are now investigating the technology. Elsewhere, the hydrogen discussion has become a bit stuck for LCVs. For heavy trucks, it could be a solution in the future, but I would not expect that personally. I think OEMs will invest in electric LCVs. With the legislation and regulations in the EU, I think this technology will be the way forward. It will take a bit of time, but it will become more important, particularly for the total cost of ownership. Carmakers and supply chains You mentioned advancing automotive technology several times. The need for more advanced parts, like chips, has increased accordingly. But how can OEMs protect themselves when supply chains for these parts become disrupted? It will remain a real challenge. I think OEMs have responded by increasing inventory buffers. We saw this with the disruption of Nexperia chips, where many carmakers tried to fast-track alternatives. It also depends on the contracts and the supply in general. But OEMs are now seeing more reason to spread their risk. Just counting on one supplier can result in quite a mess. Companies may invest in long-term contracts to ensure supply, as well as buffers and alternatives. Some carmakers may even look to get rid of some technology. I think development will now emphasise reducing the number of control units a car needs. Less technology means less reliance on these supply chains. These countermeasures may help OEMs ride the waves of supply chain disruption, but they cannot stop the geopolitical storm. International tensions have a huge impact on the automotive industry, and that is unlikely to change in the short term. The opportunities and challenges With all that in mind, what are the biggest challenges and the greatest opportunities for OEMs in 2026? We can start with opportunities. It is generally hard to say, because I do not have a crystal ball here on my desk. However, I believe that the key lies in the used-car business. This can help support decreasing new-car sales margins. With the right pricing, taking care of RV development could be a pillar for securing the business or covering decreasing margins. A well-established, certified pre-owned programme could also help. It is about developing, coaching, and teaching in the established dealer landscape and taking care of these programmes. They could support a stable value of the cars in the market. Yet, I think the greatest opportunity is to make faster development cycles. The market requires that we move faster technologically. However, this must be done purposefully, not randomly or sporadically. A well-thought-out transition to a new technology will take time. I think 2026 will be another year of transition. Established brands will need to reduce costs, optimise their workflows and strengthen their value chains. Newcomers wanting to make an impact in Europe will look to acquire dealer groups and bring volume into the market. This increased competition will likely be reflected in pricing strategies. New brands will be able to quickly gain ground by utilising customer trust in known dealer groups. So, I am not sure whether all OEMs will survive to the end of the decade. There may be another wave of consolidation on the horizon.
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The Automotive Update: Renault and Ford collaboration plus global EV enthusiasm cools 

What has drawn two automotive giants to collaborate on future vehicles? How are delays impacting the EU emissions target discussions? Autovista24 special content editor Phil Curry discusses the week’s biggest stories in The Automotive Update podcast. In the latest episode, further details on the seismic collaboration between Renault and Ford. Also, a look at what the automotive industry wants to see in the delayed EU discussions on 2035 CO2 targets. Plus, is electric vehicle (EV) interest cooling, and what could renewed negotiations between China and the EU mean for Chinese Built EVs. Subscribe to the Autovista24 podcast and listen to previous episodes on Spotify, Apple and Amazon Music. Renault and Ford join forces on EVs Ford is to partner with Renault on development of battery-electric vehicles (BEVs) and all-electric vans. The agreement will see the development of two Ford-branded EVs based on the Ampere platform that underpins the Renault 5 and Renault 4. These vehicles will be produced at Renault’s ElectriCity manufacturing plant in the north of France.  Designed by Ford, and developed with Renault Group, the two cars will feature distinctive driving dynamics, authentic Ford-brand DNA and intuitive experiences. The first of the two vehicles is expected in showrooms in early 2028.  The RAC has predicted that the partnership could signal a return for the Ford Fiesta. The model was discontinued in 2023, as the carmaker focused on larger vehicles. However, a revival in the small car market could see the popular vehicle return, with the underpinnings of the Renault 5.    EU emissions target delay The European Commission has delayed discussions of a new proposal to potentially revise the EU’s 2035 ban on the sale of new CO₂-emitting cars and vans. According to Reuters, talks are now expected to happen on 16 December. The postponement comes as policymakers and industry leaders call for adjustments to the current strategy. ACEA director general Sigrid de Vries recently highlighted the industry’s slow post-COVID-19 recovery and limited investment in EV charging infrastructure. She also argued that the 2030 and 2035 emissions targets are no longer realistic. De Vries offered five recommendations, including stronger consumer incentives , and greater technological neutrality. Environmental groups oppose the easing of restrictions. Lucien Mathieu, cars director at Transport & Environment, warned against permitting biofuels and plug-in hybrids (PHEVs) beyond 2035. ’[The new proposals]’may give them short-term comfort, but strategically it is a mistake that risks pushing the European industry into a dead end,’ he stated. Chinese EV tariff talks resume China's commerce ministry has stated that negotiations with the EU over a minimum price plan for Chinese-built electric vehicles have restarted, Reuters has reported. The ministry has also urged the bloc not to talk independently with manufacturers. The EU approved tariffs of up to 45.3% in October 2024. This followed a European Commission investigation into whether Chinese carmakers were benefiting from unfair subsidies that could impact competition in Europe. China insists its manufacturers are simply more competitive than their European counterparts. As a result, Beijing has urged Brussels to accept a minimum price plan in place of tariffs.  Study reveals a return to ICE A new study by EY has revealed that many global car buyers are shifting back from EVs to internal combustion (ICE) models.  The EY Mobility Consumer Index shows that 50% of global car buyers intend to purchase an internal combustion engine vehicle in the next 24 months. This is an increase of 13 percentage points (pp) from 2024. In addition, battery-electric vehicle preference has fallen to 14pp, a drop of 10pp. Meanwhile hybrids preference had declined to 16%, down five percentage points. Range anxiety appears to continue to be one of the top barriers for consumers choosing EVs. According to the report, 29% of respondents cited this as their top concern, while 28% pointed to the lack of EV charging infrastructure.  New autonomous partnerships Mercedes-Benz and Momenta are ushering in the next stage of automated driving with the launch of an SAE Level 4 robotaxi service. The carmaker, together with its advanced driver assistance systems partner for China, is announcing this driverless shuttle service based on the new Mercedes-Benz S-Class.  Following an initial test phase in Abu Dhabi, the partners intend to roll out the service more broadly to other locations and markets.  Meanwhile Stellantis and mobility platform Bolt have entered a partnership. They will jointly explore the development and deployment of Level 4 autonomous vehicles for commercial operations across Europe. Automotive AI investment decline? By 2029, only 5% of carmakers will maintain strong, AI investment growth, a decline from over 95% today. That is the forecast from business and technology insights company, Gartner.  The firm predicts that only a handful of automotive companies will maintain ambitious AI initiatives after the next five years. Organisations with strong software foundations, technology awareness in its leadership, and a consistent very long-term focus on AI will pull ahead from the rest, creating a competitive AI divide.  Gartner predicts that by 2030, at least one manufacturer will achieve fully automated vehicle assembly, marking a historic shift in the automotive sector. 
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The Automotive Update: New EV incentives in Spain and tariff hope for VW Group

Spain launches a new national electric vehicle (EV) incentive framework. The EU reviews tariffs on Volkswagen (VW) Group’s countervailing duties. Also, a look into Zipcar’s potential UK exit. Autovista24 editor Tom Geggus goes behind the headlines in The Automotive Update podcast. In this week’s episode, Autovista24 is joined by Autovista Group’s regional head of valuation and insights, Ana Azofra. She offers her thoughts on Spain’s bold new EV incentive plans, and what they mean for the country’s new-car market. Also, a look into how the European Commission is reviewing tariffs on a made-in-China battery-electric vehicle (BEV) from VW Group. Finally, Zipcar looks to cease its UK operations. Subscribe to the Autovista24 podcast and listen to previous episodes on Spotify, Apple and Amazon Music. Spain’s revamped EV inventive plan This week saw the formal unveiling of Spain’s new approach to EV incentives. Dubbed the Auto 2030 Plan, the scheme will replace the current MOVES funding framework, which ends on 31 December. The plan will allocate €400 million to aid direct purchases of electric cars. It will be rolled out from 1 January 2026, according to Motor.es. Under the Auto 2030 Plan, regional administrations will no longer control and allocate funds. Instead, the process will be directed by the central government. Another key change includes providing incentives at the point of purchase, as reported by EFE. The Auto 2030 Plan will direct €580 million from an EU-funded scheme to support industrial development. Additionally, €300 million will be made available to expand the country’s EV charging infrastructure. EU review of tariffs The European Commission is reviewing its tariffs on VW Group BEVs made in China. This follows VW Anhui, producer of the Cupra Tavascan, and SEAT, importer of the model, proposing a price undertaking. Since the EU implemented tariffs on BEVs made in China last year, the model has seen countervailing duties of 20.7%. This is on top of the existing 10% import duty. SEAT confirmed with Autovista24 that its proposal includes an annual import quota and a minimum import price. ‘If accepted, this would result in the non-application of countervailing duties on the Cupra Tavascan. The exemption will take effect once the European Commission accepts the undertaking and adopts the corresponding regulation,’ a spokesperson said. The process can be expected to take a few months. A spokesperson for the European Commission told Autovista24 that: ‘the door remains open for other companies to submit price undertaking offers, either jointly by groups of companies or by individual companies, as long as they adequately address the issue of Chinese subsidies.’ End of the road for Zipcar in the UK Zipcar, the car-sharing platform, looks set to close its UK operations by the end of this year. The Avis Budget-owned company has updated its UK site with a message for customers. ‘Zipcar proposes to cease operations in the UK, subject to formal consultation with affected employees. During this period, we will not be accepting new member applications,’ it reads.   Vehicles can still be booked and used up until 31 December 2025. Any new bookings are temporarily suspended beyond this date, pending the employee consultation. Zipcar operations in the US are not affected by this proposal, according to the company’s FAQs.
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The Automotive Update: Significant EV tax changes in UK and 2026 new-car market forecast

How will the UK’s Autumn budget impact the country’s electric vehicle (EV) industry? What can be expected from the global new-car market in 2026? Plus, the latest key EV battery production announcements. Autovista24 journalist Tom Hooker presents The Automotive Update podcast. In this week’s episode, a look at what the UK government’s budget means for drivers of EVs. Also, an expert-led webinar focused on new-car markets. Finally, the latest EV battery production news, unpacked. Subscribe to the Autovista24 podcast and listen to previous episodes on Spotify, Apple and Amazon Music. UK EV drivers face revamped tax framework The UK government has announced plans for a pay-per-mile tax on battery-electric vehicles (BEVs) and plug-in hybrid vehicles (PHEVs). The latest budget outlined that BEVs will be charged 3p per mile, while PHEVs will pay 1.5p per mile, from 2028 onwards. Dubbed the Electric Vehicle Excise Duty (eVED), it will sit alongside the usual annual Vehicle Excise Duty (VED). EV owners will pay both the standard tax and the mileage-based charge. Drivers look to be required to input their annual mileage when renewing their vehicle tax. They can either pay the full amount in advance or spread payments across the year. At the end of the period, they will report their actual mileage. While some have welcomed changes to VED, there is dissent. Critics of the new plans warn that the additional charge could make EVs less appealing and may slow adoption rates. What to expect for new-car markets in 2026 Autovista Group’s latest webinar, Global new-car market outlook 2026, explored some key new-car market forecasts. https://www.youtube.com/watch?v=i-C26zAOiUU An expert panel discussed whether economic headwinds and supply-chain challenges could prevail into 2026. While gross domestic product is expected to fall in many markets as inflation remains mostly flat, EV adoption will continue. Additionally, the demand for electric powertrains is driving battery innovation. In particular, lithium iron phosphate (LFP) batteries can be expected to feature in a greater number of new electrified vehicles. The webinar also assessed the potential success of Chinese carmakers in the European market. Affordability and build quality emerged as key factors in dictating potential prosperity. These new brands look set to capture a greater share of the European EV market in 2026. The question is which ones will have the staying power to succeed. EV battery production developments CATL revealed it will train up to 4,000 workers to operate its €4.1 billion battery plant in Spain. According to Reuters, the site will begin production in late 2026, supplying batteries to Stellantis. It marks China’s biggest investment in Spain and is also backed by €300 million in EU funds. The project will be Spain’s biggest battery production facility when it is completed. Three more Spanish battery plants are planned, including projects by Envision AESC, Volkswagen’s (VW) PowerCo and Inobat. LG Chem and Sinopec announced a partnership to develop key materials for sodium-ion batteries, electrive reported. The two companies said the batteries produced would be used for applications in China and globally, including ‘low-speed’ EVs. Foxconn will expand its own battery production, according to electrive. The contract manufacturer plans to produce battery cells for EVs at its Taiwan facility. Finally, Panasonic Energy will supply batteries to Zoox, Amazon’s self-driving unit, Reuters reported. Deliveries will begin in early 2026 under a multi-year agreement. 

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