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 13^th 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.

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.

Following a listless 2025, the Italian new-car market enjoyed a promising start to 2026. Year-on-year registrations were up in January, while Chinese brands continued to break through. But which powertrains and carmakers boosted results? James Roberts, Autovista24 web editor, finds out.

The Italian new-car market kicked off 2026 with year-on-year growth. In January, 141,993 new vehicles were registered in the country, according to Autovista24 calculations of ANFIA data. This ensured a 6.2% upswing, consisting of 8,352 units.   

January marked a second consecutive month of registration improvements following a year peppered with monthly declines. It also proved to be the highest volume total since March 2025. Despite this, automotive industry body UNRAE highlighted that overall figures remain below pre-COVID-19 levels.

‘After the difficulties of 2025, this first positive result fuels the hope that the current year will show a first gradual, but significant, recovery of the market, [and is] also thanks to the expected launch of new models,’ stated Roberto Vavassori, president of ANFIA.

January also featured impressive returns from Chinese electric vehicle (EV) manufacturers. This means 2026 could signal an Italian breakthrough for numerous new market entrants.

PHEVs and BEVs provide new-car push

New-car sales were undoubtedly buoyed by plug-in hybrid vehicle (PHEV) demand in January. In total, 11,638 PHEVs left Italy’s forecourts, 6,669 more than one year prior, which signalled a significant 134.2% increase in volume.

This new high monthly watermark for the powertrain helped establish an 8.2% market share, up 4.5 percentage points (pp) year on year. UNREA attribute the PHEV appeal to an expanding range of models, coupled with new provisions on company cars and fleets.

Additional factors include an attractive tax framework. Since January 2025, PHEV drivers have been granted a 20% road tax deduction on relevant vehicles. These ‘fringe benefits’ can be applied to company-provided vehicles, making them an attractive option.

Italian BEV incentive wake receding?

Battery-electric vehicle (BEV) sales remained healthy in Italy during January. The month saw 9,423 new all-electric vehicles take to Italy’s roads. This meant a 40.7% surge in demand, 2,725 more units than in January 2025. This volume gave BEVs a 6.6% market share, up 1.6pp from one year prior.

While the year-on-year gains in January were eclipsed by triple-digit gains in November and December, the figure remains impressive. The final two months of 2025 were boosted by EV incentives announced in late October.

Although fleeting and exhausted in a short time, they did have the desired impact of elevating BEV demand. A residual effect seems to have dripped into 2026, but how long can this momentum continue without meaningful support?

21,061 new PHEVs and BEVs joined Italy’s car parc in January, carving out a 14.8% market share, 6.1pp up on 12 months ago. Coupled with an 80.5% year-on-year unit increase, this has helped bolster a double-digit hold in the overall market.  

Although impressive, the combination of PHEV and BEV registrations across the month remains considerably below internal-combustion engine (ICE) figures. It was also down 5.5pp from December’s record 20.3% market share, and closer to standard monthly figures seen throughout 2025.

Automotive package clarity required

As the Italian new-car market progresses in 2026, the EU’s proposed changes to emissions targets could influence electrification.

In December 2025, the European Commission rolled out the automotive package. From 2035 onwards, carmakers may only need to cut vehicle CO₂ tailpipe emissions by 90%, compared with 2021 figures. This means new, more polluting vehicles could be sold.

For ANFIA president Vavassori, clarity on this issue is crucial for domestic policy regarding Italy’s EV fortunes moving forward.

‘With reference to the EU’s automotive package, we have instead strongly emphasised how important it is that the revision of the regulation on CO₂ emissions of light vehicles takes a clear and pragmatic direction quickly, in order to correctly orient consumers,’ affirmed Vavassori.

Further ripples of uncertainty have been caused by manufacturer Stellantis. The carmaker confirmed charges of €22.2 billion relating to reworking its EV product strategy. It is also set to sell its stake in its battery joint venture, NextStar Energy, to LG Energy Solution. This all indicates a significant EV shift for the carmaker.

Additionally, Emanuele Cappellano, head of Stellantis Europe, recently provided a stark assessment of the robustness of natural continent-wide BEV demand.

‘In Europe, profit margins are shrinking and are on the verge of becoming negative. This is a major concern for us today. There is no natural demand for electric vehicles,’ he said, according to Car Dealer. ‘Demand only arises when there are subsidies in various countries or when car manufacturers reduce prices by burning cash,’ he added.

This comes as Stellantis doubled down on plans to increase production at several key Italian plants this year, as reported by Reuters. This follows on from a production decline last year, which saw passenger cars down by a quarter year-on-year. This is the lowest level since 1954, according to the FIM Cisl trade union, Reuters reported.

Chinese models move into the Italian mainstream

January saw BYD and Chery-owned Omoda and Jaecoo marques increase their market presence in Italy. This trio of relative newcomers enjoyed considerable success.

According to ANFIA data, BYD sold 3,553 units in January, up from 827 one year ago. This marked out a 329.6% volume increase. This meant it outsold carmakers like Cupra, Mazda and Tesla in January, suggesting 2026 could be a breakthrough year.

Combined Omoda and Jaecoo sales hit 2,496 units, etching a 357.1% year-on-year boost. The two brands have proved popular amid the demand for affordable PHEVs.

Stellantis accounted for most new-car volumes in January with 45,177 registrations. This ensured a 31.8% market share and a 8.7% year-on-year registration gain. Fiat led the way with 19,162 vehicles taking to Italy’s roads, up 20.5% on January 2025.

The Fiat Panda emerged as the best-selling new car in January with 13,300 registrations. Fiat’s overall lead was also helped by the Fiat Grande Panda, with its dual strategy as both a BEV and a mild hybrid. It accounted for 3,297 units.

Volkswagen Group (VW) followed Stellantis with 21,685 sales, a 4% year-on-year boost. While Cupra thrived with 1,712 units and a 51.8% upswing, SEAT endured significant annual declines, falling 35.1%. However, the most notable fall in January belonged to Dacia. The Renault Group brand saw year-on-year sales slump 40.8% to just 6,791 units in the month.

Hybrid momentum continuing?

The Europe-wide trend of new hybrid vehicle dominance, including full and mild versions, showed no signs of slowing in January.

In total, 74,422 new hybrid variants were registered in January, up 24.9% year-on-year in terms of volumes. This made up 52.4% of the monthly Italian new-car market, a 7.8pp improvement. It also signalled a 14,860 year-on-year unit increase.

Combining hybrid volumes with PHEV and BEV numbers saw the electrified market share reach 67.2% in January. With a total of 95,483, this underlined a new record as well as the largest ever share of the market, up from December’s previous peak of 62.9%.

In the coming months, should uncertainty continue around the automotive package and further EV incentives, this trend could continue. Alternatively, the hybrid dominance of the Italian new-car market could increase as customers remain uncertain of BEVs.

Is 2026 the year ICE finally melts away in Italy?

Despite sustained double-digit declines for combined petrol and diesel registrations across 2025, ICE popularity remained a stubborn fixture in Italy’s new-car market. However, could the dial finally be shifting?

ICE numbers slid to a fourth-lowest total in 13 months. Combined, 37,371 new petrol and diesel vehicles took to Italian roads in the first month of 2026. This equated to a fall of 11,215 units and a near 10pp drop in share to a low of 26.3%.

Following a year of declines, the Italian new-car market is shaping up to be a vibrant automotive crucible in 2026. The key questions are whether the ICE slide continues, will Italy avoid mixed EV signals and navigate choppy waters?

The German new-car market declined for the first time in seven months in January, fuelled by internal-combustion engine (ICE) losses. However, new arrivals were still able to record surging volumes. Autovista24 journalist Tom Hooker unpacks the figures.

Germany’s new-car market struggled in January, with 193,981 registrations representing a 6.6% decline year on year. This was driven by a 14.4% slump in private deliveries, according to the KBA. Conversely, the commercial market grew by 2.1%.

In a familiar trend, electric vehicles (EVs), made up of battery-electric vehicles (BEVs) and plug-in hybrids (PHEVs), provided a boost. However, ICE models placed downward pressure on volumes.

In this case, the force of petrol and diesel declines prevailed. A stagnating hybrid market, combining full and mild hybrids, was unable to provide any assistance. Moreover, while EV growth remained strong, it did slow significantly.

External factors may have also influenced Germany’s sluggish start to the year. The Federal Government adjusted its GDP growth forecast downwards at the end of January, from 1.3% to 1%.

Private consumption in Germany is projected to rise by just 0.8% in 2026 according to the Annual Economic Report. On top of this, unemployment figures reached a 12-year high in the country during January, Reuters highlighted.

So, as economic growth and labour market momentum slow, this could cause delays in new car purchases. It may also push more drivers towards financing agreements instead of buying a car outright.

Overall, January knocked the German new-car market off its footing. However, some brands performed better than others in a slowing market.

Which brands recorded growth?

Volkswagen (VW) recorded more deliveries than any other carmaker in the German new-car market during January. This was despite suffering a double-digit decline compared to the previous year. Fellow VW Group brand Skoda was the country’s second-best-selling marque in the month. However, unlike VW, it enjoyed a double-digit improvement.

Domestic marques Mercedes-Benz, BMW and Audi took third, fourth and fifth, respectively. SEAT secured sixth, despite suffering the biggest year-on-year decline out of the 10 best-selling brands, at 29.8%. Opel, another Stellantis brand, enjoyed a 27.4% sales increase in seventh.

Behind, Ford endured a 11.1% drop in eighth, as Hyundai took ninth. Fiat rounded out the top 10 with an 87.2% surge compared to January 2025. This improvement made it one of the fastest-growing carmakers in the month. The marque with one of the largest volume surges was BYD, with a 1,018.7% year-on-year uptick to 2,629 registrations.

Lynk & Co saw even greater growth of 1,175%, but only to 51 units. Leapmotor saw a triple-digit increase, alongside Xpeng and Polestar. But once again, these brands’ results were also based on lower volumes.

Slowing EV growth

While carmakers saw varied registration growth, the electric vehicle (EV) market continued its streak of double-digit improvements. Volumes increased by 23.5% in January compared to 12 months prior.

This growth seems impressive at first glance, yet it marked a significant slowdown. It was the slowest EV registrations performance since December 2024. With 64,482 units hitting the roads, it also marked the lowest monthly delivery total since August 2025.

Smaller volumes can be explained by January typically being a slower month for new-car registrations. However, with EVs playing an increasingly important role in the overall market performance, maintaining growth rates has become crucial.

The powertrain group made up 33.2% of overall deliveries in January, up 8.1 percentage points (pp) year on year.

‘The passenger car market has made an extremely cautious start to the new year. For sustainable overall market growth in 2026, we need a further increase in BEV order intake,’ commented VDIK president Imelda Labbé.

Are incentives holding back demand?

Germany’s new EV incentives are set to boost registrations of plug-in powertrains. Buyers can submit funding applications for the new scheme, applicable to both BEVs and PHEVs, retroactively from 1 January 2026. The subsidy is expected to scale with taxable household income and family size. It is also dependent on the vehicle’s powertrain.

However, applications must be submitted through an online portal, which is expected to open in May 2026. This could mean that some buyers are withholding purchases to ensure incentives are applied closer to the point of sale. But for now, the market will need to survive without the immediate aid of subsidies.

‘Customers now need clarity as quickly as possible about the modalities of the BEV subsidy that has been promised since January,’ Labbé confirmed.

Elsewhere, the ZDK urgently appealed that the government does not waste time in implementing the incentives.

‘Delays in the implementation process have been causing uncertainty among companies and customers since the announcement of the EV subsidy two months ago,’ highlighted ZDK president Thomas Peckruhn.

BEVs losing momentum?

Of the two EV technologies, BEVs saw marginally stronger growth. Registrations improved by 23.8% compared to 12 months prior, with 42,692 units leaving forecourts. This was the smallest all-electric increase in percentage terms since June 2025. Despite this, its share soared by 5.4pp to 22%.

PHEVs enjoyed a 23% uptick in volumes, with 21,790 units. Yet, this was its lowest improvement since December 2024. The powertrain captured 11.2% of total deliveries, up 2.7pp year on year.

ICE maintains declines

In line with other major European new-car markets, registrations of ICE-powered models declined again in Germany during January.

Volumes slumped by 25.5% in the month, with 71,004 units. This represented the powertrain group’s biggest year-on-year drop in percentage terms since June 2025. Its share fell by 9.3pp to 36.6%.

Petrol suffered the bigger drop of the two fuel types, with a 29.9% delivery downturn. This was its fourth consecutive double-digit decline, and its biggest monthly fall since June 2025. The powertrain recorded 43,695 registrations, nearly half of its total from January 2024.

Petrol’s share slipped to 22.5%, down by 7.5pp year on year. It also marked the closest that the fuel type has ever been to BEVs in terms of market share. Just 0.5pp separated the two powertrains in January, compared to a 13.4pp gap one year ago.

Diesel deliveries dropped by 17.1% to 27,309 units. Like petrol, this marked its fourth consecutive double-digit decline. Furthermore, it also represented the lowest diesel volume since August 2025. Yet, its 14.1% market share, although down by 1.8pp year on year, was the powertrain’s highest since July 2025.

Has hybrid growth already peaked?

The hybrid market endured a 1.8% dip in January, with 58,206 new models taking to the road. The result comes after marginal growth in December and an uncharacteristic decline in November. These results signal a shift in the technology’s consistent upward momentum. Before this, hybrids achieved 14 months of consecutive growth.

While it pushed past petrol to become Germany’s most popular powertrain in 2025, recent performances may suggest that hybrids have reached their natural peak. The technology accounted for 30% of overall registrations in January, up 1.5pp year on year, but well below the 8.1pp rise achieved by EVs.

So, as a transition technology from ICE models to EVs, the tide may have already shifted in the latter’s favour. Moreover, as EV charging infrastructure improves and technology becomes more advanced, buyers may be less compelled to choose a hybrid.

What is undeniable is that electrified models, comprised of EV and hybrid volumes, now dominate the German new-car market. The powertrain group made up 63.2% of overall volumes in January, up 9.5pp year on year. This was helped by a 10.1% growth in registrations to 122,688 units.

December delivered a much-needed boost to the Italian new-car market. However, despite an eye-catching electric vehicle (EV) uplift, this did little to revive a stagnant 12 months. Following a year of inertia, what state is the sector in? Autovista24 web editor James Roberts examines the data.

Italy’s new-car market ended 2025 in decline. Across the year, 1,524,843 new vehicles took to the country’s roads, 33,228 fewer than 12 months prior. Compared to 2024 figures, this marked a 2.1% year-on-year dip, according to the latest data from ANFIA.

Conversely, December witnessed a year-on-year improvement in fortunes. The final month of the year saw 108,075 new vehicles join Italy’s car parc. This was an upswing of 2.3% and 2,390 units, according to Autovista24 calculations of ANFIA data.

However, this was the second-lowest monthly registration total of the year after August. Following a blunt 0% growth in November, December did signal a welcome positive rebound for the first time since September.

In terms of electrification, Italy’s EV uptake conundrum was laid bare. Throughout the year, battery-electric vehicle (BEV) and plug-in hybrid (PHEV) registrations have increased. This was boosted in November and December by quickly exhausted incentives. Despite this flash of prosperity, across the whole year, the plug-in market share has struggled to make a meaningful impact.

Hybrid powertrains, including full and mild versions, accounted for the highest volumes in 2025. This was reflected in the end-of-year deliveries and market share. Meanwhile, petrol and diesel continued a pattern of decline.

High EV sales too little too late?

In total, 21,925 new EVs were registered in December, including BEVs and PHEVs. This was the second-highest monthly total of 2025. The powertrain group saw a 130.3% year-on-year uptick, to the sum of 12,406 additional vehicles.

PHEVs had a particularly good December, with 9,851 registrations. The powertrain established a 165.4% year-on-year volume gain, plus a 9.1% market share, up 5.6 percentage points (PP). This was the fourth consecutive month of triple-digit increases for PHEVs.

Meanwhile, BEVs scored a second month of triple-digit increases. In total, 12,074 new all-electric vehicles reached customers in Italy. This propelled the monthly BEV market share to 11.2%, a significant 5.7pp increase compared with December 2024.

On the one hand, this December EV result is cause for celebration. Building on November’s peak EV volumes, it seems some momentum could be carried forward into 2026. However, November and December’s PHEV and BEV upswings were fueled by fleeting national incentives.

This is not unusual, and countries such as Spain have harnessed EV incentives effectively in 2025 to boost adoption. However, in Italy, the new-car market has been punctuated by short-lived and inconsistent policies. This uncertainty has stunted EV adoption.

EV momentum likely to fade

In late October, the Italian Ministry of the Environment and Energy Security (MASE) confirmed new EV incentives.

Under Italy’s National Recovery and Resilience Plan (PNRR), private buyers could receive up to €11,000 toward a new EV. This was subject to household income and the scrapping of a Euro 5 or older internal-combustion engine (ICE) car. Small businesses could claim up to €20,000 for an electric light- commercial vehicle (LCV).

The scheme had a total budget of more than €597 million, with a view to replace about 39,000 ICE vehicles. However, the incentives were fully claimed for use within 24 hours of launch, MASE confirmed.

In the short term, this had the desired impact. Immediately following the incentive launch, plug-in registrations breached 20,000 in November. This momentum prevailed into December, helping to ensure a monthly share high of 20.3%, a sizeable 11.3pp surge.

‘What really stands out is the market share of BEVs, which reached 11.2% in December,’ affirmed Marco Pasquetti, Autovista Group’s cluster head of forecasting for Spain and Italy. ‘This is remarkable considering that for most of the year the share hovered around 5%.

‘This increase was expected and is largely the result of the incentive scheme launched in October, which generated some 55,700 vouchers for the purchase of an equal number of vehicles. Since the bonus is no longer available, this positive momentum is likely to gradually fade in the coming months,’ he added.

Poor PHEV and BEV market share

Assessing 2025 as a whole, the EV market share in Italy has increased significantly. However, as ANFIA outlined, growth remains ‘very slow.’ When isolating BEV and PHEV powertrains, the relative lack of impact in the overall market is apparent.

In all, 192,964 EVs took to Italian roads in 2025, according to ANFIA. This proved to be 74,652 more than the previous year, a 63.1% increase. EVs secured a 12.7% share, one of the lowest of the major European new-car markets.

98,340 PHEVs left Italy’s forecourts in 2025. While this signalled a satisfying 86.6% year-on-year volume increase, the overall market share stood at 6.4%. This was the second lowest of Italy’s six propulsion categories, according to Autovista24 analysis of ANFIA data.

Just 3,716 units behind, BEVs ended the year with 94,624 registrations, up 44.2% on 2024 totals. Despite the clear gains, the powertrain made up the lowest share of Italy’s new-car market at 6.2%. This was an increase of just 2pp year on year.

Hybrid decline on the horizon?

Across the whole of 2025, hybrid power proved the most popular choice for Italy’s new-car buyers. Amid stop-start and sluggish EV inroads, the thirst for this powertrain remained strong. However, despite this apparent Europe-wide trend, are things changing?

Complete ANFIA data for 2025 revealed that 671,923 hybrid vehicles were sold in Italy last year. This secured the largest portion of the country’s new-car market at 44.1%, up 4.1pp year on year. Aside from the holiday month of August, December returned the second-lowest hybrid volume of 2025. 46,048 units were delivered in the month, carving out 42.6% of the market.

While dominant, the hybrid share fell throughout the year. Compared with January, hybrid’s hold was down by 2pp in December. Although relatively small, it could suggest buyers could be turning towards alternative powertrain options.

Electrification creeping up

One thing was certain across Italy’s new-car market in 2025. When it comes to electrified vehicle registrations, hybrids provided the backbone.

Adding hybrid figures to EV volumes, these powertrains accounted for 56.7% of the Italian new-car market in 2025. In total, 864,887 units heralded a 16.7% year-on-year volume increase.

Removing hybrid totals drops the market share to just 22.6%. In many ways, this illustrates the double-edged sword of hybrid success. The powertrain could be a gateway from ICE to fully-electric cars. However, its enduring appeal amid overall low sales totals is stunting the EV transition.

The European Commission’s recent Automotive Package could see Italy standing at a crossroads. With the sale of new ICE vehicles, including mild hybrids, potentially extended beyond 2035 in the EU, questions have emerged domestically.

These changes could dent EV uptake, further hindering growth and market diversity in Italy. This is amid already uneven incentive frameworks. Industry bodies such as UNRAE have cited the Commission’s proposal as a ‘starting point, but not yet satisfactory.’

‘Critical issues remain and aspects to be clarified and improved to avoid negative effects on the market, consumers and industrial competitiveness,’ elaborated UNRAE president, Roberto Pietrantonio. ‘The transition must be effective and practicable, not just ambitious, and to become so it needs realism and listening. Adequate tools are needed, such as a review of the taxation of company cars, widespread development of electric charging infrastructure, and affordable charging tariffs.’

Decline for petrol and diesel?

While it may go against the grain of green targets, Italy’s ICE sector proved resilient amid a trend of decline. ICE totals, including petrol, diesel and bio diesel variants, accounted for 519,563 registrations in 2025. This meant a market share of 34.1%, down from 43% in 2024.

The continued decline of ICE demand in Italy is not in doubt and is reflected across most of Europe. The powertrains have been able to maintain a strong grasp on the overall new-car market. However, examining petrol and diesel registrations in isolation reveals significant drops.

Petrol ended the year 18.2% down on 2024, while diesel underwent a drastic 31.6% slide. However, both these fuel types held higher respective market shares than individual PHEV and BEV variants. After hybrid powertrain volumes, petrol clearly remains the second most popular new-car choice with 24.4% of the overall market.

Made up of liquified petroleum gas, compressed natural gas and hydrogen fuel-cell vehicles, the ‘other’ category ended 2025 strongly. It held a 9.2% market share, down just 0.2pp. It ended the year as the fourth most popular fuel type grouping, and another thorn in the side of EV uptake.

Unseating ICE resilience, as well as hybrid dominance, will be key to boosting the relatively scant EV market share in Italy. New incentive packages will be central to increased EV market share in 2026, which UNREA highlights as a ‘key year for the future of the sector.’