Segment: Government

Automotive package proposes new internal-combustion engine sales after 2035

The European Commission’s automotive package proposes new internal-combustion engine (ICE) powered vehicles could be sold past 2035 in the EU. Autovista24 editor Tom Geggus unpacks the news and what it means for the region’s automotive industry.

The European Commission’s automotive package has opened the door to greater CO2 emissions flexibility for carmakers. The proposal comes following pressure from member states and big automotive players.

Under current rules, all new cars and light-commercial vehicles (LCVs) sold in the EU would need to emit zero CO2 from 2035 onwards. Instead, the automotive package published today considers the possibility of technological neutrality.

What is in the automotive package?

From 2035 onwards, carmakers will only need to cut vehicle CO2 tailpipe emissions by 90%, compared with 2021 figures. The companies will need to make up for the remaining 10% by using low-carbon steel made in the EU, or from e-fuels and biofuels.

ICE-powered models, plug-in hybrids (PHEVs), mild hybrids (MHEVs), and extended-range electric vehicles (EREVs) will still be available to purchase. Battery-electric vehicles (BEVs) and hydrogen vehicles will also be available.

The 2030 target could also be more flexible, with a ‘banking and borrowing’ scheme between 2030 and 2032. This means manufacturers could get three years to reduce their CO2 emissions by 55% compared with 2021.

The Commission acknowledged the slower progress of the electric LCV market. It suggested the 2030 CO2 target for LCVs will be reduced from 50% to 40%.

The automotive package also sets mandatory zero and low-emission vehicle share targets for corporate fleets. These will be set at the member state level to reflect differing levels of market maturity, according to the Commission. The total number of corporate vehicles registered by large companies will then be passed back to the Commission.

The Commission has also updated its car labelling rules, which provide CO2 and energy performance information to consumers. This will now include electric energy consumption and the range of electric vehicles (EVs). The scope of these labels will also be increased beyond new vehicles. New LCVs, used cars and used vans will also be covered.

Further automotive measures in the EU

The package also proposes the use of what the Commission is calling ‘super credits’. Carmakers will be able to earn these by selling small and affordable electric cars made within the EU. The hope is that this will incentivise the introduction of smaller EVs.

The Commission also stated a €1.8 billion battery booster could accelerate the development of a local battery value chain. Of this, €1.5 billion is earmarked to support European battery cell producers with interest-free loans.

The omnibus proposal could bring savings for businesses and national administrators to €706 million, according to the Commission. This is broken down into €655 million in compliance costs and €51 million in administrative costs.

Alongside the Commission’s other omnibus measures and simplification initiatives, administrative savings could climb to €14.3bn per year. This should help local carmakers concerned about the cost of electrification and the adoption of zero-emission vehicles.

Support for automotive package

‘Innovation. Clean mobility. Competitiveness. This year, these were top priorities in our intense dialogues with automotive sector, civil society organisations and stakeholders,’ said European Commission President von der Leyen.

‘Today, we are addressing them all together. As technology rapidly transforms mobility and geopolitics reshapes global competition, Europe remains at the forefront of the global clean transition,’ she outlined.

Apostolos Tzitzikostas, Commissioner for sustainable transport and tourism, highlighted that Europe’s automotive industry is a cornerstone for the region’s economy. He stated that it contributes 7% towards EU gross domestic product and provides nearly 14 million jobs.  

‘With today’s automotive package, we are strengthening the sector’s competitiveness introducing flexibility into the CO₂ standards for cars and vans and a technology-neutral framework. We are also creating demand for cleaner corporate cars and vans, reinforcing EU manufacturing and supply chains,’ he said.

Germany’s automotive body, the ZDK, came out in full support of the automotive package. It called the proposal necessary and overdue in the step towards a more realistic European climate policy.

‘We offer highly efficient combustion engines, namely the 48-volt mild-hybrid engine, which provides a climate protection benefit when fuelled with carbon-neutral fuel. This technology is one of the options for complying with future CO2 fleet regulations,’ said ZDK president Thomas Peckruhn.

‘Specifically, emissions measurements at the exhaust must account for fuel origin. Carbon-neutral fuels should be excluded from the balance. If in the future only pure electric vehicles are demanded, these offerings will naturally disappear from the market without complicated regulations and high penalties,’ he added.

Proposal creates concern

The proposal also drew criticism. Green group Transport and Environment (T&E) said reversing the phase-out of ICE sends a confusing signal to the automotive industry and consumers. It calculates the 90% CO2 target could result in 25% fewer BEV sales in 2035 than under the current target.

It welcomed the introduction of national electrification targets for large company fleets. However, it claimed that these will not be ambitious enough to drive greater uptake for the sector.  

‘The EU has chosen complexity over clarity. Breeding faster horses could never have halted the ascent of the automobile,’ said William Todts, executive director at T&E.

‘Every euro diverted into PHEVs is a euro not spent on [B]EVs while China races further ahead. Clinging to combustion engines will not make European automakers great again,’ he commented.

‘While China accelerates, Europe is hesitating, and hesitation is not a strategy. Changing the rules midway through the game undermines business confidence after companies have already committed capital and built factories around a 100% trajectory,’ said Chris Heron, secretary general of E-Mobility Europe.

‘But once the dust has settled, we are confident the core of the 2035 framework will still matter more for the market than today’s exemptions. The world’s transition to EVs is irreversible, shaped by cost and efficiency,’ he added.

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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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Is the German new-car market bracing for an EV crash?

Will the German new-car market achieve full-year registrations growth in 2025? So far, electric vehicles (EVs) have provided some hope, but they also pose a hurdle ahead. Autovista24 journalist Tom Hooker explores the numbers.

Deliveries of new cars in Germany rose by 2.5% in November, capping a fifth straight month of improvement. The 250,671-unit total was once again driven by electrified powertrains, data from the KBA shows. But for the first time this year, not all of them recorded growth.

‘Despite one fewer working day, new-car registrations still rose. Adjusted for the calendar effect, growth was 7.6% in November, signalling continued recovery,’ noted Robert Madas, Autovista Group’s regional head of valuations.

Breaking the overall total down by sales channel, the private sector was another positive force. Deliveries to individuals rose by 10.1%. Meanwhile, commercial registrations dropped by 1%, despite making up 65.7% share of the market.

Crisis mode?

‘Year-to-date, the market is up 0.7% to 2,611,152 units,’ highlighted Madas. ‘This confirms only a modest rebound overall.’

The result means the market should see full-year growth in 2025. Yet, for some industry figures, the current level of growth does not signal a healthy environment.

‘A mini increase does not conceal the problems. The German automotive market is still in crisis mode,’ stated ZDK president Thomas Peckruhn.

Yet, upcoming EV incentives could create the perfect storm. Buyers may be holding back on plug-in purchases until they can benefit from the new scheme, which begins in January 2026. While not affecting all registrations, Germany is now more dependent on EVs compared to 2023, when subsidies were last available.

Important market changes ahead

According to ADAC, the new incentives will support private households with low and middle incomes to buy or lease an EV. Funds will be available for both BEVs and PHEVs. To receive the incentive, the car must remain in the possession of the applicant for a defined period.

The subsidies are aimed at individuals with a taxable annual household income of up to €80,000. The incentive amount will be at least €3,000, increasing by €500 per child to a maximum of €4,000. For those with a monthly net income below €3,000, there are plans for an additional €1,000 boost.

However, incentives alone are far from the only component that is vital for a healthy EV market. The VDIK stated that ‘customers are generally open to electric cars if the total costs are no higher than for combustion engines.’

‘With a fast, unbureaucratic and fair implementation of the subsidy program announced by the coalition, the expansion of infrastructure and lower electricity prices, the CO2 fleet limits could just about be achieved in the coming year,’ forecasted VDIK president Imelda Labbé.

‘This is conditional on the programme coming into force retroactively on 1 January 2026,’ she explained.

Charging infrastructure masterplan

‘Another key development supporting the EV transition is the recently adopted “Masterplan Ladeinfrastruktur 2030”. This sets the strategic framework for a nationwide, user-friendly charging network and measures strengthening demand,’ explained Madas.

‘Without timely implementation, the risk remains that infrastructure expansion lags behind EV adoption. This would undermine consumer confidence and slow the market ramp-up,’ he commented.

The plan looks to boost demand and investment, simplify and accelerate implementation, as well as increase price transparency. Improvement of the electricity grid integration and enhancing user-friendliness are also covered.

‘The master plan provides for a whole series of correct measures that can help to further increase the attractiveness of electric mobility. It will be crucial that these measures are now implemented quickly and consistently,’ outlined VDA president Hildegard Müller.

‘It is also welcomed that the master plan provides improved framework conditions for bi-directional charging technology, which the Bundestag further strengthened and made more attractive for consumers with the amendment of the Energy Industry Act and the Electricity Tax Act,’ she added.

Following the plan’s adoption, the ZDK, VDIK and BBM published a joint position paper. The document presents a transmission which grants electricity providers non-discriminatory access to public charging stations. It also enables customers to use their own electricity tariff in public spaces, regardless of the operator.

The three industry bodies say that the model ensures more transparency, uniform billing and freedom of choice between charging providers.

‘If you want to anchor electromobility on a broad scale, you have to consistently think about the charging infrastructure from the user’s point of view,’ emphasised Peckruhn.

‘Non-transparent, sometimes high charging tariffs and a jumble of payment cards and billing systems still deter many consumers from buying electric cars. The transmission model can untangle this knot,’ he added.

Historic EV performance

Battery-electric vehicles (BEVs) and plug-in hybrids (PHEVs) enjoyed another positive performance in November. Together, the EV category recorded its highest monthly volume and market share since August 2023. This month saw a pull-forward effect, before subsidies for commercial BEV buyers ended in September 2023.

The 88,174 EV total in November equated to a 58.1% rise year on year. This marked 11 consecutive months of double-digit growth. Meanwhile, the EV share sat at 35.2%, up by 12.4 percentage points (pp) year on year.

The powertrain grouping enjoyed a 48.4% uptick in volumes from January to November, with 771,507 deliveries. Plug-ins made up 29.5% of the overall market, up from 20.1% in the first 11 months of 2024.

Mysterious BEV market

In terms of growth, BEVs were the best-performing powertrain in November. This marked a fifth straight month of double-digit improvements.

‘BEVs surged 58.5% to 55,741 units, capturing a 22.2% market share, the highest since the end of purchase subsidies nearly two years ago,’ outlined Madas.

This was also the highest monthly volume and growth for BEVs since August 2023, which felt an incentive pull-forward effect. Meanwhile, its share was up 7.8pp year on year.

Across the first 11 months of the year, volumes surged 41.3% to 490,368 units. This gave BEVs an 18.8% market share, up from 13.4% during the same period of 2024.

Despite these overwhelmingly positive figures, some cracks are appearing. Private registrations of BEVs have not been as strong as expected, even with the sales channel driving overall new-car market growth.

According to the ZDK, the increase can be largely attributed to ‘persistently high self-registrations by manufacturers and dealers.’

‘The supposed rise of electromobility is on shaky ground,’ explained Peckruhn. ‘In fact, a large proportion of new BEVs initially end up in factory and dealer yards. Private and commercial new registrations are not yet quite at the level of 2023.’

PHEV’s unbreakable streak

‘PHEVs also saw deliveries accelerate, up 57.4% to 32,433 units,’ said Madas.

This proved the powertrain’s biggest monthly volume since December 2022. But once again, this month witnessed an incentive-affected pull-forward effect. The figure also continued its perfect streak of double-digit growth in every month so far this year.

The 57.4% increase was the lowest PHEV growth since February 2025, showcasing the technology’s strength this year. Plug-in hybrids represented 12.9% of the overall market last month, up 4.5pp compared to November 2024.

From January to November, a total of 281,139 PHEVs were delivered to customers in Germany. This translated to a 62.7% improvement year on year. The powertrain accounted for 10.8% of total volumes, up from a 6.7% share during the first 11 months of 2024.

Emission target impact

With EU CO2 fleet limits now averaged from 2025 to 2027, PHEVs can provide a boost towards targets. The technology does emit more tailpipe emissions than BEVs. However, they do provide a bridge for customers who are still unsure about going fully electric.

Yet, according to the VDA, the EU Commission is planning to reduce the PHEV utility factor. This means the technology will count as emitting more CO2 for fleet compliance purposes, unless it demonstrates sufficiently high electric-drive usage.

In turn, this could reduce the credit that PHEVs contribute to a manufacturer’s CO2 target. If this comes into effect, brands may try to push BEVs more than PHEVs.

‘Compared to ICE models, plug-in hybrids can make a noticeable contribution to achieving the CO2 fleet limits if used appropriately. They also significantly encourage customers to switch to pure-electric cars at a later date,’ outlined Labbé.

‘We therefore call on the EU Commission to refrain from the planned reduction of the utility factor from January 2026. This is the only way to create a meaningful framework for the federal government’s planned plug-in funding,’ she highlighted.

Hybrid’s abnormal knock

Germany’s hybrid market, including full and mild hybrids, endured an unexpected knockback in November. It recorded a 4.1% decline in registrations year on year. This was the powertrain’s worst monthly performance since July 2022 and its first drop since August 2024.

Its 70,916-unit total still accounted for a majority 28.3% share of the new-car market. However, this was down 1.9pp year on year.

In the first 11 months of 2025, hybrid volumes rose by 8.7% to 744,838. Its share sat at 28.5%, down from 26.4% during January to November 2024.

Adding hybrids to the EV total, the electrified market recorded a 22.6% increase in volumes during November. This was the powertrain grouping’s lowest improvement since June. However, its 63.5% share was the highest of the year so far. It also equated to a 10.5pp rise year on year.

In the cumulative figures, electrified registrations in Germany posted a 25.9% uptick. The three technologies captured 58.1% of overall volumes, up from 46.5%.

Petrol and diesel market parallels

Deliveries of new petrol and diesel-powered cars witnessed a similar performance in November. Petrol endured a 21.1% fall to 61,067 units, while diesel posted a 19.3% drop to 29,471 registrations.

The two fuel types also saw their market share fall to the lowest point since December 2022. Diesel models made up 11.8% of total registrations, down 3.1pp year on year. Meanwhile, petrol represented 24.4% of overall volumes, a drop of 7.2pp compared to 12 months prior.

Petrol’s once comfortable lead over BEVs is slowly eroding. The share of all-electric models in November trailed the fuel type by 2.2pp. In January this year, the gap was 13.4pp.

From January to November, deliveries of petrol-powered cars fell by 22.4% to 715,724 units. This caused its market share to drop from 35.6% to 27.4%. Diesel suffered a slightly smaller drop of 18.6% to 367,934 registrations. The powertrain accounted for 14.1% of the market, down 3.3pp year on year.

Unsurprisingly, the ICE market, which combines registrations of both fuel types, endured a 20.5% sales slump last month. This was its second double-digit drop in succession. The ICE share sat at 36.1%, down by 10.5pp year on year. The powertrain made up 41.5% of the new-car market after 11 months of 2025, down from 53%.

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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.

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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How will the UK’s pay-per-mile tax impact EV owners?

The UK budget included a pay-per-mile tax for electric vehicles (EVs). But how will this work, and what are the potential costs involved? Autovista24 special content editor Phil Curry analyses the data.

A new pay-per-mile scheme for EVs is to be introduced in the UK from 2028. The latest budget announcement confirmed that both battery-electric vehicles (BEVs) and plug-in hybrids (PHEVs) are to be subject to this tax.

For BEVs, this rate will start at 3p per mile. For PHEVs, a discounted rate of 1.5p will be introduced. This must be paid for every mile covered by the vehicle, alongside petrol or diesel.

The Electric Vehicle Excise Duty (eVED) will see drivers pay for their mileage alongside their existing Vehicle Excise Duty (VED). The pay-per-mile rates will be kept in line with inflation from 2029 onwards. Alongside the annual £195 VED requirement after the first year of registration, BEV drivers travelling an average of 7,000 miles a year would pay £405 a year in tax.

A consultation has been published to gain opinions on how the system will work. It states that drivers will estimate their annual mileage and pay for the year ahead or spread the cost monthly. At the end of the year, actual mileage can be submitted, at which point a ‘reconciliation’ will be required.

‘In moves to update the tax system for a modern-day economy the government is introducing a new per-mile levy for electric and plug-in hybrid cars, coming in 2028. All cars contribute to wear and tear on our roads, so it is only right that our motoring taxes cover EVs via a modest per-mile levy, with extra support to keep EV ownership attractive,’ the government announced.

How to pay the mileage charge

The eVED scheme will require drivers to input their annual mileage when renewing their VED. This suggests a change in the way drivers apply for VED.

Currently, vehicle owners can opt to pay for a full 12 months, six months, or a monthly fee. Automatic renewal is offered, with payments taken using direct debit. For monthly payments, this continues until cancelled.

If EV drivers need to input their mileage at the VED renewal stage, this suggests the rolling-payment scheme may end. Instead, owners will likely need to fill out new forms each year, including current mileage and projected annual mileage.

This change has not yet been confirmed but is suggested in the government’s consultation document. Whether this requirement will be rolled out to drivers of all powertrains, or just EV owners, remains to be seen.

The costs of pay-per-mile

The BEV pay-per-mile tax appears to have been calculated at roughly half the cost per-mile fuel duty for petrol. This currently sits at 53p per litre. The budget stated this will remain frozen until September 2026, when it will rise in line with inflation.

Based on an average of 36 miles per gallon (MPG), a petrol car’s per-mile fuel duty costs currently reach 7p. However, diesel vehicles, with an average of 43mpg, achieve a cost per mile of 6p. Hybrids, which have an average of around 59mpg, have a per-mile cost of 4p.

Averaging the MPG of the two pure internal-combustion engine (ICE) technologies, the cost per mile sits at 6p. This is double the planned BEV rate.

According to the latest car parc data from the SMMT, there were 1,334,108 BEVs on UK roads at the end of 2024. Assuming a yearly average of 7,000 miles, this fleet would raise over £280.16 million via the pay-per-mile tax.

This is a small amount compared to the income generated for petrol models. There were 21,041,175 of these cars on the UK roads at the end of 2024. Based on a rate of 7p per mile, this parc would generate £10.31 billion for the UK treasury. This is based on an average distance of 7,000 miles a year per car.

For PHEVs, the situation is more complex. Drivers will be paying both fuel duty and pay-per-mile tax. This could see a cost of 7p per mile for a petrol PHEV, including 1.5p for the electric powertrain.

Could pay-per-mile reduce fuel duty loss?

The pay-per-mile tax has been brought in to help offset any declines in fuel duty that the treasury as electrification continues. The Office for Budget Responsibility (OBR) stated that £1.4 billion would be raised by introducing pay-per-mileage for EVs.

However, it also warned that: ‘on the basis of the current policy settings, this only makes up for about one-quarter of the receipts that will be lost from the decline of fuel duty by 2050.’

It appears there is currently little threat of declining fuel duty income to warrant the new tax. This would require a significant reduction in the number of petrol and diesel models in the UK by 2028.

In 2024, the UK car parc stood at 36,165,401 units, according to SMMT data. This was a 1.3% rise year on year. Of these, 34,088,155 units were either a petrol, diesel or HEV. This was a 0.3% decline compared to 2023 figures, based on Autovista24 calculations.

This decline was driven by a fall in petrol and diesel figures. Combined, ICE-powered passenger cars fell 1.1% compared to 2023 totals.

Across all vehicles, fuel duty raised £24.6 billion in revenue in 2024, according to the Office for National Statistics.

If pure ICE passenger cars each averaged 7,000 miles, fuel duty would have generated £15.18 billion, Autovista24 calculates. This was down by 0.9%, compared to £15.31 billion in 2023, based on the same criteria. If the pay-per-mile tax were implemented on 2024 car parc figures, BEVs would offset this decline by £16.57 million.

While EV sales are increasing, they are not simply replacing petrol, diesel or HEV models. It will be some time before the decline in ICE passenger cars is large enough to see a significant drop in fuel-duty income.

The PHEV issue

For PHEVs, the situation is more complex. As reporting electric-only mileage will be impractical, the pay-per-mile rate has been reduced to 1.5p. This will be applied to the total mileage travelled in a year, regardless of power used. PHEVs will also be required to continue paying fuel duty when filling up.

‘The government recognises that PHEV driving habits vary and that some motorists will drive more or less than 50% in electric mode. However, alternative options would require motorists to report their exact mileage driven in petrol versus electric mode, which is not considered a practical or proportionate approach,’ the government stated in its consultation document.

‘A reduced rate for PHEVs strikes the right balance between fairness, protecting motorists’ privacy and minimising administrative burdens on motorists,’ it continued.

This would mean that for a petrol PHEV, drivers could end up paying 8.5p per mile. Covering 7,000 miles per year, plug-in hybrid owners would pay £595 a year. Of this, just £105 would contribute to electric-only usage.

In comparison to a BEV driver paying just £210 for the same distance, the charge seems disproportionate. The PHEV cost is also much higher than the £490 for petrol powertrains after 7,000 miles.

The situation could impact the PHEV market, which has been performing well throughout 2025, according to SMMT data. Drivers may not want to spend larger amounts on the powertrain. The bridging technology could see new-car deliveries plummet, with customers moving back to ICE, or switching to HEVs or BEVs.

Wrong time for pay-per-mile tax?

The introduction of pay-per-mile driving for EVs is another additional tax on BEVs. This year has already seen all-electric models eligible for VED and the Expensive Car Supplement (ECS).

The government is pushing for BEV adoption, with the zero-emission vehicle mandate placing strict requirements on carmakers. Yet these taxes, while bringing the technology in line with other powertrains, could put buyers off investing in all-electric models.

‘This new pay-per-mile charge is likely to reduce demand for electric cars as it increases their lifetime cost. To meet the ZEV mandate, manufacturers would therefore need to respond through lowering prices or reducing sales of non-EV vehicles,’ the OBR stated in its report.

‘Overall, as a result of this measure, we estimate there will be around 440,000 fewer electric car sales across the forecast period relative to the pre-budget forecast, with 130,000 of this offset by the expected increase in sales due to other Budget measures,’ it continued.

Mike Hawes, SMMT chief executive, commented: ‘Changes to the VED expensive car supplement are welcome, as is the additional £1.3 billion funding for the Electric Car Grant and support for charging infrastructure. These will help, but will not offset the impact of introducing a new electric-Vehicle Excise Duty, the wrong measure at the wrong time.

‘Manufacturers have invested to bring more than 150 EV models to market. However, the pressure to deliver the world’s most ambitious zero emission vehicle sales targets – whilst maintaining industry viability – is intense. With even the OBR warning this new tax will undermine demand, government must work with industry to reduce the cost of compliance and protect the UK’s investment appeal,’ he added.

Boosting EV uptake

The chancellor did announce an increase in the ECS for BEVs. This only became applicable to the technology in April 2025, with the level set at £40,000. This was the same amount as other powertrains.

However, BEVs often cost more than their petrol and diesel counterparts. In this regard, the budget announcement included a new limit of £50,000 for all-electric models.

This increase comes into effect in April 2026. Until then, BEVs are still subject to the £40,000 level. This could see buyers considering more expensive models delay their purchases. However, there is an increasing number of more affordable models coming to market.

In addition, an extra £1.3 billion of funding will be allocated to the Electric Car Grant. The incentive scheme will also be extended to run until the 2029-2030 financial year.

The ending of Employee Car Ownership Schemes, which was due to come into effect in April 2026, has also been delayed. These schemes can now run until April 2030.

Finally, a raft of measures for EV charging infrastructure was announced. This includes an extra £100 million investment to increase the infrastructure in the UK. In addition, a review into the cost of public EV charging will be launched in the first quarter of 2026. This will run until the third quarter of the year, after which a report will be published.

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Which new entrant is winning over the UK’s EV market?

The UK’s electric vehicle (EV) market is under pressure to perform in 2025. But how are new entrants and the introduction of the Electric Car Grant (ECG) helping to drive sales? Autovista24 special content editor Phil Curry examines the data.

The UK’s EV market, made up of battery-electric vehicles (BEVs) and plug-in hybrids (PHEVs), is continuing to grow. Sales have benefited from new entrants and the reintroduction of incentives.

In total, 522,489 EVs were sold in the country nine months into 2025, according to the latest data from EV Volumes. This equated to a 32.2% increase year on year. Of the two powertrain technologies, BEVs were more popular, accounting for 66.9% of all plug-in deliveries in the UK.

With 349,704 deliveries between January and September, the BEV market increased by 29.6% compared to the same period of 2024. Meanwhile, the PHEV sector recorded 172,785 sales, signalling a 37.7% improvement.

BEVs are under pressure to perform in the UK at present. The zero-emission vehicle (ZEV) mandate requires 28% of a carmaker’s deliveries to be either BEV or hydrogen fuel-cell models. SMMT data revealed that BEVs only made up 22.1% of the UK’s entire new-car market three quarters into 2025.

BYD leads new entrant boost

Over the last few years, the UK has become an attractive prospect for new entrants to the European automotive market. Many of these brands are subject to EU import tariffs, with a focus on BEVs built in China.

Of these new entrants, the most impressive performance came from BYD. Between January and September 2025, it sold the third-largest number of EVs in the UK, reaching 35,474 units. This was up 574.4% compared to the same period in 2024.

The marque has been helped by its popularity in the plug-in hybrid market. Over the first three quarters of the year, the UK’s best-selling PHEV was the BYD Seal U, with 16,129 deliveries. It accounted for 9.3% of all PHEVs sold, leaving the industry stalwart, the VW Tiguan, in second.

The rest of the carmaker’s tally came from the BEV market. While not placing in the annual top 10 chart after three quarters of the year, BYD did make inroads with the Sea Lion 7 in September. It was the sixth best-selling BEV in the month, moving 2,019 units. This was impressive for a model that only started deliveries in January, ending the month with a 2.8% market share.

Jaecoo impresses as another new entrant

Another impressive new entrant is Jaecoo. It only offered one model in the UK across the first nine months of 2025: the J7 PHEV. With deliveries first recorded in March 2025, it took third in the annual PHEV top 10 with 12,463 units. This puts it just 110 units behind the VW Tiguan, meaning it could end the year as the second-best-selling PHEV.

September was the model’s best month on the market, with 4,855 deliveries, allowing it to take second. This meant the Jaecoo J7 held 12.6% of the PHEV market in the month. Alongside the BYD Seal U, it was one of two models to achieve a double-digit market share in September.

However, Jaecoo’s reliance on one model over three quarters of 2025 did impact its position in the brand ranking. In September, the carmaker placed ninth. Yet this position could be boosted by the introduction of the Jaecoo 5 later this year.

Jaecoo’s sister brand, Omoda, saw 6,154 sales between January and September, placing it 23rd in the brand chart. The carmaker has not fully focused on the EV market, with its Omoda 5 model offered with BEV or petrol powertrains.

There are also other new entrants to the UK market that are still expanding their operations. These include Leapmotor, Chery, Xpeng and Geely. More brands mean more choice for consumers, something that can help spur the EV market forward.

Incentivising the market

In July 2025, the UK government announced the introduction of the Electric Car Grant. This incentive scheme sees up to £3,750 offered against the list price of a new BEV.

This plan includes two tiers, with manufacturers required to nominate their passenger cars and light-commercial vehicles to be eligible. Models will either qualify for a discount of £3,750 (€4,299) or £1,500.

The grant level is based on strict sustainability criteria. This includes the level of CO2 emitted during the production process, supply-chain emissions, and the use of renewable energy sources.

Battery production emissions account for 70% of the criteria targets, with vehicle assembly emissions weighted at 30%, the RAC reports. The carbon intensity of the electricity grids where production takes place is also considered. Additionally, only BEVs with a list price of under £37,000 will be eligible.

Currently, only three vehicles qualify for the maximum discount. These are the Ford Puma Gen-e, the Ford E-Tourneo Courrier, and the Citroën ë-C5 Aircross Long Range. Both Ford models were added to the list at the end of August, while the Citroën became eligible at the beginning of November. There are a further 38 models in the second tier, eligible for a £1,500 discount.

Is the Electric Car Grant working?

At first glance, it appears the ECG has had little impact on the UK’s BEV market. In September, the two best-selling models were the Tesla Model Y, with 4,273 units, and the Tesla Model 3, with 3,720 deliveries. The former lost volume compared to 2024, by 26.3%. However, the Model 3 jumped by 100.5% year on year.

Yet the Ford Puma Gen-e was the third-best-selling BEV in September. This was the first full month of the model’s eligibility for the ECG discount. Having gone on sale in April 2025, the Puma Gen-e did not achieve more than 635 deliveries until September. On reaching this month, it achieved a volume of 3,144 units.

The UK often sees a bounce in passenger car sales in September due to the plate-change effect. However, the Puma Gen-e achieved a month-on-month improvement of 1,383%. In comparison, the Ford Explorer saw an increase of 67.9%, while the Ford Capri achieved 109.6% growth.

Therefore, it does seem that Ford has benefited from its BEV model being eligible for the full ECG discount.

The only other ECG-approved model that made September’s top 10 BEV chart was the Skoda Elroq. Having come to market in January 2025, it saw 1,671 sales in the month, placing it eighth. This was its highest total of the year but was comparable with its 1,206 sales in March. So, it seems the model’s position is based more on the model’s popularity than its £1,500 grant.

The rest of September’s top 10 BEV table was made up of models that are not eligible for the ECG. Therefore, it may be a while before the full effect of the grants becomes clear.

Tesla domination continues

Across the first nine months of 2025, the Tesla Model Y led the market with 18,310 sales. This gave it a 5.2% market share. Close behind was the Tesla Model 3, with 16,605 deliveries and a 4.7% hold of the all-electric total.

The two US models have a commanding lead ahead of the third-placed Audi Q4 e-tron. This saw 11,087 sales in the nine-month period, for a 3.2% market share.

In the PHEV market, behind the top three, the Ford Kuga placed fourth, some way behind the Jaecoo J7. With 8,305 sales, it achieved a 4.8% share of the total PHEV volume after three quarters of 2025. It was ahead of the MG eHS, which managed 5,739 deliveries and a 3.3% market share.

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EVs continue to energise Spain’s surging new-car market

Of Europe’s major new-car markets, Spain’s is shining the brightest. But with electric vehicles (EVs) once again powering growth, could incentive uncertainty dim this success? Tom Hooker, Autovista24 journalist, evaluates the figures.

At first glance, Spain’s 15.9% year-on-year new-car market growth recorded in October seems undeniably positive. It marks the country’s sixth consecutive month of double-digit growth and the eighth overall in 2025. So far this year, the country has not registered any decreases in overall monthly volume.

Compared with October 2024, an additional 13,313 units were delivered according to Autovista 24 calculations of ANFAC data. This brought the month’s total to 96,785 registrations.

Important takeaways

Of all the powertrains, EVs and hybrids, including both full and mild-hybrids, were at the centre of this growth. This highlights Spain’s increasing interest in electrification.

‘October’s new-car registration figures provided three important takeaways. Firstly, this was the first month in which deliveries surpassed pre-pandemic levels,’ noted Ana Azofra, Autovista Group’s head of valuations and insights, Spain.

‘Secondly, we are seeing the clear dominance of hybrid vehicles, which accounted for 43.2% of all registrations. Thirdly, Spain continues to make steady progress toward electrification. Plug-in hybrids (PHEVs) and battery-electric vehicles (BEVs) reached a 22.4% market share in October, to the detriment of internal-combustion engines. For example, diesel vehicles accounted for only 5.6% of sales.’

‘Overall, the month highlights Spain’s ongoing move toward vehicle electrification, supported both by the product strategies of carmakers and by increasing consumer interest in lower fuel consumption and reduced emissions,’ Azofra commented.

Individual buying power

The private sales channel boosted registrations in October, according to ANFAC. It saw a 23.9% year-on-year increase to 51,359 units. The corporate sector also enjoyed a delivery boost of 10.2% in the month, reaching 39,860 units. Conversely, the rental channel suffered a 5.2% decline to 5,566 registrations.

Spanning the first 10 months of 2025, new-car volumes rose by 14.9% to 951,388 deliveries according to Autovista24 calculations.

‘The market continues its upward trend in October and accumulates 14 consecutive positive months. Private purchases continue to mark significant increases compared to 2024,’ said GANVAM communication director Tania Puche.

In contrast, new-car volumes in France, Germany, Italy and the UK have not deviated far from their 2024 figures. This, combined with rising economic and geopolitical uncertainty in Europe, makes Spain’s performance particularly impressive.

However, it is not all positive news. October’s result is the lowest monthly growth since June. So, is there a genuine cause for concern?

Incentive uncertainty for EVs

The MOVES III purchase incentive scheme was implemented in April this year. Since then, EV volumes, which combine BEV and PHEV deliveries, have soared.

From May to August, both BEVs and PHEVs enjoyed triple-digit year-on-year growth every month. This plug-in progress culminated in a 24.4% market share in August, according to Autovista24 figures. Last month, however, the EV market share was two percentage points (pp) lower, according to ANFAC data.

The national incentive scheme runs until 31 December 2025. There has been no official announcement that the subsidies will continue past that date.

‘On the table now is the question of whether the MOVES incentive plan will be renewed. This could help maintain the current pace of growth in the market share of EVs. In fact, the funds in some autonomous regions have already run out, with the EV market share falling by 1.6pp compared to September,’ highlighted Azofra.

‘We are concerned about the lack of visibility we have regarding the continuity of aid in those regions or autonomous communities where the budget has been exhausted,’ added Faconauto communication director Raúl Morales.

Possible impact

A complete exhaustion of EV incentives would have a heavy impact on the wider new-car market. Excluding plug-ins from October’s overall figures would have resulted in monthly registrations growth of just 2.1%.

‘It is necessary to apply immediate measures and additional allocations to respond to buyers until the end of the year. Any uncertainty around the purchase decision must be dispelled because we cannot afford for the market to lose momentum, just as it was starting to recover,’ stated Puche.

The end of a deduction in personal income tax for the purchase of EVs could also slow down Spain’s plug-in demand. The current regulation states that the vehicle must be purchased between June 2023 and December 2025.

‘Market developments highlight the urgent need to extend MOVES funds until the end of the year to avoid a sales shutdown. A situation that could worsen in January 2026, when the 15% deduction in personal income tax for the purchase of electrified vehicles also ends,’ commented ANFAC general director José López-Tafall.

EVs remain resilient

Despite incentive uncertainty, EV volumes continued to perform strongly against 2024 figures. Plug-in deliveries surged by 118.9% in October, reaching 21,690 units and a 22.4% market share, according to Autovista24 calculations.

This meant that, for the first time in 2025, year-to-date EV growth crept into triple-digit figures, recording a 100.2% improvement.

This was thanks to an extra 90,284 registrations compared to the same period in 2024. A total of 180,421 units were delivered in the 10-month period. Plug-ins accounted for 19% of the new-car market from January to October, up 8.1pp.

Yet, even with Spain’s surging EV growth, it is still behind other major new-car markets in terms of plug-in share. This includes France, Germany and the UK.

‘In 2025, electrification has taken a leap forward in Spain, motivated by the remarkable commercial effort of brands and the provision of purchase aids. However, although these figures are positive, they still place us below the European average: a 19% EV share in passenger cars compared to 25% in the EU,’ noted López-Tafall.

‘In addition, the current pace is still insufficient to meet the emission reduction targets for both passenger cars and commercial vehicles. This is not the time to settle, but to accelerate,’ he added.

PHEV surge drives EVs

For the seventh successive month, PHEVs were Spain’s best-performing single powertrain in terms of registration growth. Volumes soared by 145.5% in October to 12,621 units, according to Autovista24 calculations. Yet, after a peak improvement of 178.9% in July, growth has slowed in every month since.

On a more positive note, the technology’s market share rose by 6.8pp to 13%. This uptick was less pronounced in the cumulative figures. The powertrain accounted for 10.4% of overall deliveries compared to 5.7% during the first 10 months of 2024. Meanwhile, volumes soared by 109.6% to 99,283 units.

Meanwhile, BEVs enjoyed a year-on-year increase of 90.2% in October, with 9,069 units. This was an improvement from September’s 59.7% increase. All-electric models captured 9.4% of total volumes, up from 5.7%.

The powertrain’s share in the year-to-date reached 8.5%. This equated to a 3.3pp increase from October 2024. Volumes improved by 89.7% in the first 10 months of the year, thanks to 81,138 deliveries.

No respite for diesel

At the other end of the spectrum, deliveries of diesel-powered cars have dropped month to month, with October no exception. The fuel type endured a 28.6% fall in volumes to 5,459 units, according to Autovista24 calculations. However, this was diesel’s smallest decline since March.

This translated to a 5.6% share, down from 9.2%. It also marked the fourth time this year that the powertrain took a lower monthly share than the ‘others’ category. This grouping includes LPG-powered cars.

From January to October, diesel-powered models posted a 36.2% delivery decline to 52,697. It represented 5.5% of the market, down 4.5pp year on year.

‘In terms of technologies, the market continues to increasingly leave diesel aside, whose sales are residual. Individuals and companies are increasingly opting for hybridised or electrified models,’ commented Félix García, director of communication and marketing at ANFAC.

Petrol’s new low

Petrol-powered cars did not fare much better, with a third consecutive month of double-digit decline. A 19.6% fall equated to 22,299 registrations and a 23% market share, according to Autovista24 calculations. This signalled the fuel type’s lowest share so far this year and a 10.2pp drop from 12 months prior.

Between January and October, petrol-powered models suffered a 13.7% decline, with 273,235 deliveries. This was 43,531 registrations fewer than the same period one year before. In turn, its market share fell from 38.2% to 28.7%.

Adding together petrol and diesel volumes, internal-combustion engine (ICE) models faced a 21.5% drop in October. Meanwhile, the pair’s share slumped by 13.7pp to 28.7%. This was its lowest level of 2025, highlighting the continued switch by Spanish buyers to electrified models.

A total of 325,932 petrol and diesel-powered cars were handed over to customers from January to October. This marked an 18.4% loss in volumes.

Hybrids extra push

Hybrid powertrains have seen the greatest increase in terms of volumes of any powertrain across the first 10 months of 2025. Despite much lower overall growth than PHEVs or BEVs, an additional 84,499 hybrid models have taken to Spain’s roads so far this year, according to Autovista24 calculations.

This raised its total by 27.1% to 396,533 registrations in the year to date. It remains comfortably the most popular powertrain, accounting for 41.7% of total deliveries, up 4pp compared to the same period of 2024.

The technology saw a more subdued growth of 18.9% in October, equating to 41,792 units. In turn, its market share sat at 43.2%, up a modest 1.1pp.

Combining hybrids with the EV total, the electrified market continued to drive new-car volumes in Spain.

The powertrain grouping made up 60.6% of overall deliveries from January to October, up 12pp year on year. This was thanks to a 43.5% boost in volumes, with an extra 174,783 units handed over to customers compared to 12 months prior. This growth was reflected in October, with a 40.9% rise in registrations and a 65.6% market share.

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An electrified resurgence for the French new-car market?

October sealed a hat-trick of monthly growth for the French new-car market, with battery-electric vehicles (BEVs) pushing registrations forward. Will this momentum continue for the remainder of 2025? Autovista24 web editor James Roberts investigates.

The French new-car market recorded a third consecutive month of growth in October. Autovista24 calculations of figures published by PFA and AAA Data reveal that 139,519 models took to the country’s roads. This was 3,991 units more than in October 2024, equating to a 2.9% year-on-year upswing.

October 2025 contained the same number of working days as October 2024, highlighting the improvement in the French new-car market. The increase was not due to any offset in the available buying period, but due to genuine demand.

This monthly hat-trick has helped alleviate the country’s year-to-date deficit. Between January and October, 1,326,303 new vehicles were registered. This equalled a year-on-year decline of 5.4%, amounting to 75,132 fewer deliveries.

Just French fleet electrification?

Despite the negative cumulative figures, October’s strong showing helped reduce the longer-term negative trend. A 3.3% year-to-date drop recorded in February spiralled into an 8.2% dive in the first five months of the year. Since then, the market has been slowly improving.

Consecutive double-digit year-on-year BEV uptake from July onwards has been central to this growth, mainly driven by fleets. However, according to AAA Data, private purchases are beginning to have more of an impact on overall registrations. This is largely thanks to more favourable purchase incentives.

Both petrol and diesel registrations continued along an established trend of decline. On the other hand, the hybrid market, made up of both full and mild hybrid powertrains, continued to lead the way. Although the pair did see their lowest monthly share so far this year.

AAA Data stated that across all powertrains, private sales accounted for 51% of the market. Meanwhile, fleet sales captured 30% of the overall market.

Buoyant French BEV results

New incentive frameworks appear to be boosting BEV uptake in France. According to Autovista24 calculations based on PFA and AAA Data, the powertrain enjoyed a 63.2% delivery increase in October.

A year-best monthly volume of 34,110 units boosted the sector. This meant 13,211 more all-electric vehicles reached customers than in the same month last year. October’s BEV result also offered a 2,672 unit increase on September’s previous peak of 31,438.

With this positive uptick, the BEV market share reached 24.4% in October. This is the highest so far in 2025, and a 9 percentage point (pp) increase from October 2024.

Spanning the first 10 months of the year, 250,420 BEVs have taken to French roads, up 5.3% year-on-year. This is the first positive result for the powertrain in the year to date. Four months of positive BEV momentum has established a cumulative market share of 18.9%, up 1.9pp.

Incentives changing the BEV make-up

The French BEV market has traditionally been driven by fleets. While this channel remains a dominant driver, October saw a shift as individual buyers increasingly entered the market. According to AAA Data, registrations by individual consumers soared by 75%, compared to October 2024. This outpaced the already strong fleet registration growth of 66%.

This change has been assisted by improved purchase incentives. This included the ‘Coup de pouce’ bonus. As of 1 October, it provides an additional €1,000 for BEV purchases, provided the car is assembled in Europe and equipped with a European battery. This will remain available until 31 December.

‘The ecological transition is a lever for reindustrialisation,’ outlined Agnès Pannier-Runacher, minister of ecological transition, biodiversity, forestry, the sea and fisheries. ‘With this €1,000 increase in the ecological bonus, we are promoting electric vehicles whose batteries are produced in Europe and whose manufacture emits fewer greenhouse gases. It is a win-win measure for purchasing power, the climate and industry. It makes the electric car more accessible to the French, while supporting industry and employment.’

A favourable outlook?

This was complemented by the renewed social leasing programme on 30 September. This scheme is set to involve at least 50,000 eligible households.

‘Electric registrations to individuals accelerated significantly during the month and showed the first significant effects of the new purchase incentives,’ stated Marie-Laure Nivot, head of automotive market analysis at AAA Data.

‘The outlook for the coming months is becoming more favourable. The supply of electric models is increasingly in line with demand and their gradual arrival among second-hand professionals is contributing to the decline in average second-hand prices.’

Despite the apparent BEV gains, caution must be applied. While the new incentives seem to have immediately slowed the fall in BEV sales to private buyers, broader market struggles could be unearthed.

This includes the wider slide in popularity of new internal-combustion (ICE) purchases, and increased taxes on these vehicles. This could drive down overall new-car sales. Additionally, more stringent eligibility rules require a low-carbon production footprint. This could exclude many non-European-produced electric models from incentives.

Precarious plug-in share

The plug-in hybrid (PHEV) powertrain is no stranger to double-digit declines in France. October reinforced this dominant trend, with year-on-year declines recorded every month this year so far.

According to Autovista24 calculations, last month saw 9,323 PHEVs join the French car parc. This equalled a year-on-year slide of 14.4% and 1,569 fewer units. As a result, the PHEV market share stood at 6.7pp, a 1.3pp year-on-year drop.

Despite this lacklustre performance, October’s significant BEV success bolstered the monthly prosperity of plug-in vehicle registrations overall.

Combined, BEV and PHEV sales amounted to 43,433 units in the month, ensuring a 31.1% market share, up 7.6% year on year. However, the poor PHEV performance is stunting the plug-in market in the year to date.

Between January and October, plug-in cars captured a 25.1% share of the market. This marked a year-on-year increase of just 0.3pp and a volume decline of 4.4%.

Hybrid hotspot

In lockstep with most major European new-car markets, hybrids remain the dominant choice in France. Autovista24 calculations revealed that this trend continued in October, as the powertrain seized 42% of the domestic new-car market, a 1.6pp year-on-year increase. 58,633 of these units were registered in the month, equating to a 7% boost in sales and 3,845 additional vehicles.

Across the first 10 months of this year, 590,063 new hybrids left French forecourts. This underlined a significant 26.2% year-on-year increase, illustrating that hybrid popularity is well established in France.

In the same period, hybrids accounted for 44.5% of the French new-car market. This resulted in a year-on-year increase of 11.1pp. Although this appears healthy, it is below the trending increases seen earlier in the year.  

Adding the dominant hybrid figures to BEV and PHEV numbers reveals an expanding electrified market share. Combining the three powertrains saw a total of 922,343 electrified vehicles reach French drivers between January and October. This was up by 13.1% from the same period 12 months ago.

A strong showing in October from hybrids and BEVs helped push the electrified market share to 69.5% in the month. This is a high watermark for the year, plus an 11.3pp year-on-year lift.

ICE in the firing line

New petrol registrations remained consistent in October. However, this was no cause for celebration.

The month matched September’s market share of 19.2%, with 26,742 registrations, according to Autovista24 calculations. This lagged behind the previous month’s total by 192 units. Year-on-year declines saw petrol 7.7pp in arrears.

Spanning the opening 10 months of 2025, petrol power popularity reached a new low. Occupying just 22% of the overall market, the fuel type has nosedived 8.7pp year on year.

Diesel witnessed a similar story in October, with sales hitting a new low for 2025. 5,807 new vehicles were registered, meaning a 33.7% year-on-year plummet in volumes. While this appears significant, it is not the largest drop. That occurred in March, with a 52.1% freefall.

Between January and October, the fuel type ended up with a 4.9% market share. This was just 1.3pp above the ‘others’ category, which includes superethanol (E85) powered vehicles, natural gas, and liquid-petroleum gas (LPG).

Combined petrol and diesel registrations continue to erode. The ICE share slumped to 26.9% after 10 months of the year, as 356,478 new vehicles were registered, 178,742 fewer than the same timeframe in 2024. This resulted in the ICE share slipping by 11.3pp year-on-year.

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What is a concept car?

While many designs make it to the road, some are only destined for exhibition halls and marketing materials. But the concept car still has an important role to play in the automotive market. Autovista24 special content editor Phil Curry examines their purpose.

Over the decades, carmakers have used innovative model design to stand out from the competition. Design must also allow for regulations, with safety features and sustainability requirements needing to be considered.

However, a concept car allows these shackles to be removed as designers illustrate their unique ideas. These prototype vehicles are developed to highlight new trends in both design and technology. However, they are not created to be sold, but provide a glimpse of what could be possible in the future.

These models can feature advanced aerodynamics, futuristic user interfaces, innovative powertrains or advanced technology. Concept cars allow brands to push the limits of design without the need to worry about production or budgets.

These concept cars can also reveal the findings of studies, help develop and implement new technologies, or visualise new production models.

Concept car design

Concept cars were once a mainstay of motor shows. Brands looking to attract attention to their stands unveiled what they believed would be the car of the future. Some had a basis, while others were more experimental. But these cars attracted audiences and inspired belief in the future of mobility.

The basis for a concept car was to highlight future design trends. The first model developed as a concept was the Buick Y-Job in 1938. This came at a time when many cars featured large vertical grills, separate headlights and little design sculpting.

Black and white photo of a Buick Y-Job with man sat in driver's seat and a building in the background
Source: General Motors

But the Y-Job, created by US designer Harley J. Earl, created a different profile that fed into upcoming models. This included the 1949 Buick Roadmaster and the 1953 Buick Skylark. The grill design is still seen in Buick models today.

Since then, brands have used concept cars for a variety of purposes. Some have highlighted design trends that have carried into their production models. Meanwhile, others focused on vehicles which could inspire future trends.

Journey of the concept car

Renault has taken concept car ideas through to production on several occasions. This means it developed an outlandish future concept, then a realistic opportunity, followed by a production model.

One example is the Renault EZ-Ultimo, a model presented at the Paris Motor Show in 2018. At the time, autonomous vehicle technology was a hot topic of discussion, so the carmaker revealed a trio of ‘robo-vehicles’.

The EZ-Ultimo was a mobile lounge, showing what would be possible with driverless vehicles. Not only did it serve a purpose of suggesting future design trends in an unrestricted environment, but it also drew crowds to Renault’s stand.

Press photo of a green Renault Embleme
Source: Renault

Moving forward to 2024, Renault presented the Embleme. This model presented the potential of an alternative powertrain system. It featured dual-energy electric and hydrogen technology to reduce CO2 emissions over the entire lifecycle of the vehicle.

In 2021, the carmaker unveiled the Renault 5 Prototype. It forged a connection with the carmaker’s former model that was discontinued in 1996. The concept acted as a precursor for the Renault 5 E-Tech, which was launched in 2024. The carmaker carried many of its design features into the production model, which is now on sale.

Digital concepts

Interest in traditional motor show concepts began to wane in the late 2010s. The COVID-19 pandemic saw many brands switch to online launches. This meant fewer design restrictions in the development of concept cars.

Rather than produce a physical model, designers could dig into the digital world. Brands showcased their concept drawings and videos to show what was possible. Fast forward to 2025, and this digital mindset has stuck around.

One example is the Ferrari F76, a digital hyper car created in the form of an NFT. It combines Ferrari’s racing tradition with generative design and digital technologies.

Photo of a Ferrari F76 concept car
Source: Ferrari

Designed for clients of the Hyperclub programme, the F76 was created to support the 499P competing at Le Mans and in the World Endurance Championship.

While the development of a concept car has changed, its role remains the same. They are created to inspire both designers and consumers. They also create discussions and allow brands to build on their reputations to lead ideas around future technologies. Either digital or physical, concept cars remain a standout part of automotive development.

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Is an EV revolution brewing in the Baltics?

Latvia, Lithuania, and Estonia have all seen a notable electric vehicle (EV) uptake in recent years. What is behind this growth in the Baltics, and how bright is the future? Joanna Fabiszewska-Solares, market analyst at EV Volumes, examines the data with Autovista24 web editor James Roberts.

While EV adoption, made up of battery-electric vehicles (BEVs) and plug-in hybrids (PHEVs), remains inconsistent across Europe, some markets are pushing forward. In Portugal, every third car registered in the country last year was an EV. In Norway, BEVs account for almost 92% of new car registrations in 2024, according to EV Volumes data.

Three nations can be added to this trend: Latvia, Lithuania, and Estonia. Although not officially affiliated, they are strongly bonded through regional cooperation, historical ties, plus shared strategic and geopolitical interests.

One further thing they share is recent, and significant, uptake in BEVs and PHEVs. In all three light-vehicle markets, accounting for passenger cars and light-commercial vehicles (LCVs), the EV share reached double digits.

Underneath the apparent EV prosperity of these three geographically contiguous economies lies a complex set of circumstances. While Latvia and Lithuania are experiencing overall positive new-car sales spanning all powertrains, Estonia is seeing a more downbeat picture. The trio of markets needs to handle varying incentives, charging infrastructure challenges, and the forging of domestic energy independence.

Latvia leading the way

The second largest Baltic state in terms of population, at nearly 1.86 million, Latvia has developed a significant EV base. According to EV Volumes, between January and August, EVs accounted for 18.4% of the nation’s light-vehicle market.

This meant 2,842 plug-in light vehicles were sold in the country in the eight months. This is compared to 1,156 at the same point last year, with a 10% share of the market.

Between January and August this year, 1,076 BEVs took to Latvia’s roads, claiming a 7% market share. This was just 159 fewer than the 2024 total, which stood at 1,235, suggesting a new high will be achieved this year.

2023 set a high watermark for BEV sales in Latvia, in what was a strong year for the entire domestic automotive market. The powertrain achieved a 9.5% share of light-vehicle sales, with 1,800 units shifted. However, the following year saw a decline in BEV adoption as well as an overall fall in light-vehicle registrations.

Weaker BEV sales in 2024 were largely the result of stricter EU-wide CO2 emission standards and impending 2025 emission targets. This contributed to a year-end push to sell internal-combustion engine (ICE) vehicles across many other EU countries, including Latvia.

Underlining a pan-Baltic trend, PHEVs have enjoyed notable popularity in Latvia so far this year. Between January and August, the powertrain passed the 1,000-delivery mark for the first time, hitting 1,766 units. This is already up from 741 registered across 2024, with the powertrain achieving an 11.4% market share already this year.

Incentives driving EV uptake in Latvia

In 2023, EVs accounted for 11.6% of light vehicles taking to Latvia’s roads. This share remained stable at 11.5% in 2024, thanks mostly to an increased PHEV share. In isolation, the hybrid powertrain took a 2.1% share in 2023, then a 4.3% in 2024.

Amid the wider new light-vehicle market falling by 9.5% in 2024, the BEV market share dropped 2.3 percentage points (pp) last year. Conversely, BEV deliveries fell from 1,800 in 2023 to 1,235 one year later.

This year, major policy changes and increased availability of affordable models are supporting increased EV ownership. In April, the Latvian government raised the total funding support for EV and hybrid adoption by €11 million. This included EV purchase grants, setting subsidy levels at €4,500 for BEVs, and €2,250 for PHEVs.

Coupled with this, falling interest rates have resulted in higher corporate purchases and leasing. This has driven total light-vehicle registrations upwards, despite inflationary pressure.

Aligned with these incentives, BEVs, PHEVs, and hydrogen fuel-cell vehicles (FCEVs) remain exempt from registration tax. The policy amendments also increased the Operation Vehicle Tax (VEN) for internal-combustion engine (ICE) powered vehicles from January 2025.

EV Volumes forecasts that EV sales in Latvia’s passenger car segment alone will grow by 27.5% in 2026. This will be driven by the availability of affordable EVs, as well as the tightening of EU-wide CO₂ regulations.

Lithuania’s vibrant EV market

So far this year, Lithuania, the largest of the Baltic states, has seen a similar PHEV-driven electrification trend to Latvia.

Between January and August this year, the country saw 27,582 light vehicles registered. This puts it on course to meet last year’s total of 30,101 units. So, what percentage of these sales were attributable to plug-in hybrids?

Between January and August this year, 2,532 PHEVs were registered in the country. This is already an increase of 77.1% on 2024’s total, which stood at 1,430. BEV registrations reached 1,616 deliveries in the first eight months of this year. This is on course to exceed 2024’s total of 1,720. However, this is likely to be below 2023’s record of 2,034 units.

EV sales accounted for 15% of the Lithuanian light-vehicle market between January and August this year. This was up from 9.5% registered in the first eight months of 2024. EV growth has been mostly driven by increased PHEV registrations. The powertrain represented a 9.2% market share in the first eight months of this year, compared with just a 4.1% across the same period last year.

Looking further back, EV registrations have surged since reaching 8.1% in 2022. EV sales in the passenger car segment are projected to continue growing. A year-on-year increase of 36.5% is expected by the end of 2025, according to EV Volumes.

Varied EV incentives in Lithuania

Since 2021, EV purchase subsidies have been available in Lithuania. These include €5,000 for individuals, as well as a €1,000 scrappage bonus, extending to €4,000 for companies. BEVs are also exempt from road tax until the end of 2025. From 2026, these vehicles will receive a 75% discount.

Additionally, green tax reforms were introduced in January this year. This included the Corporate Income Tax Act (CIT), which is aimed at increasing taxable deductions for lower-emission vehicles. The sliding scale provides a maximum deduction of up to €75,000 for zero-emission vehicles (ZEVs).

Like Latvia, Lithuania’s EV sector has also benefited from falling interest rates. A growing number of leasing and renewal contracts from rental companies has helped push EV registrations up too.

When it comes to EV charging infrastructure, Lithuania leads the way in the Baltics. The country benefits from a higher density than Latvia and Estonia. According to EV Volumes, Lithuania has a total of 1,618 public EV charging locations. This is compared to 1,180 in Estonia and 1,172 in Latvia.

Estonia’s complex EV landscape

Compared with Latvia and Lithuania, Estonia’s new-car market is experiencing notable headwinds. While the three Baltic states all suffer from high inflation, Estonia possesses the second-highest rate in the EU at 6.2%.

This factor is contributing to a decline in domestic new light-vehicle sales. According to EV Volumes data, between January and August 2025, total light vehicle sales fell by 39.6%. This equated to just 8,275 units taking to Estonia’s roads in the period.

In particular, ICE sales have dramatically fallen since January. This increasing void has boosted the overall market share of EVs in the country, albeit compared with a low baseline. Although the longer-term forecast for relative EV growth is promising.

However, in volume terms, EV sales in Estonia are declining. Between January and August this year, 1,262 EVs were registered. This is compared with 1,387 in the same period last year, representing a 9% decrease. However, the EV share of passenger cars in Estonia increased to 17.3%, compared to 10.2% at the same point last year.

Estonia powertrain breakdown

Across the first eight months of 2025, BEVs held a 7.1% share of the overall light-vehicle market. Meanwhile, PHEVs took a 10.2% slice. In 2024, EVs accounted for 9.7% of the overall market, which amounted to 2,454 units. This was up from 2022, when 1,995 new EVs were registered.

Like fellow Baltic states, Estonia has rolled out incentives to boost EV uptake. The Motor Vehicle Tax Act was introduced in January. Like incentives in Latvia and Lithuania, it offers reduced vehicle tax for owners of EVs.

According to EV Volumes forecasts, passenger car registrations in Estonia will increase moderately by 3.9% year-on-year in 2026. EVs are forecast to expand, supported by ongoing tax exemptions and the EU-wide tightening of CO₂ emission standards. As a result, BEV and PHEV numbers are expected to grow by 42.8% year-on-year.

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The Automotive Update: Chinese carmakers excel in UK and emissions talks continue

Which Chinese carmakers are excelling in the UK? What is the latest on the EU emissions targets for 2035? What upcoming events should you know about? Tom Geggus, editor of Autovista24, discusses the week’s news in The Automotive Update podcast.

In this episode, Autovista24 explores how Chinese brands are making their mark in the UK. Then, as discussions continue around the EU’s CO2 emissions plans for 2035, what are industry associations saying? Finally, find out about two exclusive Autovista Group events that are just around the corner.

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

Chinese brands prove strong

September saw a strong result for the UK’s new-car market, with a 13.7% year-on-year improvement in volumes. Of the 312,891 cars delivered, 12.4% came from Chinese brands.

These carmakers are establishing a foothold in the UK. New entrants are building their customer base, providing alternatives to well-established marques, and challenging their market positions.

BYD had its best-ever month in September, with registrations up 880.1% year on year. In total, it delivered 11,271 new cars, according to data from the SMMT. This places it close to brands such as Volvo, Peugeot and Vauxhall.

The Seal U DM-i was its most popular model in the month, accounting for 66.8% of BYD’s total. This makes it the UK’s best-selling plug-in hybrid (PHEV) model in the year to date, according to the carmaker.

Omoda and Jaecoo, brands from the Chinese manufacturer Chery, also had a very strong month, with 10,812 combined registrations. This comes just over a year after the launch of Omoda, with its petrol-powered 5, and all-electric E5. It is also around eight months after the Jaecoo J7 PHEV made it to market.

Jaecoo was the more popular brand, with 6,489 registrations, while Omoda picked up 4,323 deliveries.

MG, owned by SAIC Motor, had its best September on record. In total, it secured 14,577 registrations, making it the UK’s eighth-most-successful brand, ahead of established marques such as Nissan, Peugeot, Skoda, Vauxhall and Renault. The carmaker attributed this success to its hybrid lineup, including the HS, ZS and MG3.

Discussions on emissions

Discussions around the EU’s CO2 emissions targets for 2035 are ongoing. ACEA has proposed that the Commission consider easing its rules for cars, vans and trucks.

According to Reuters, the industry body recommended longer compliance periods, as well as greater acceptance of hybrids and alternative fuels. ACEA highlighted the difficulties of cutting vehicle CO2 emissions by 100% come 2035, particularly with lower demand and a lack of EV charging infrastructure. 

The association recommended that the 2030 targets be set on an average between 2028 and 2032. It suggested small EVs be given a super credit, while PHEVs and range-extended electric vehicles play a bigger role. 

However, Transport and Environment calculated that suggested loopholes to the EU’s CO2 rules would halve the bloc’s ambition of selling only zero-emission cars in 2035.

Meanwhile, German Chancellor Friedrich Merz held discussions with industry bodies and trade unions to discuss the country’s automotive sector.

These talks covered the competitive and adaptive pressures on carmakers, including electrification, digitalisation and international competition. 

While committing to German and European climate targets, there was also support for alternative fuels as well as a flexible and realistic frameworks. 

Residual value trends

Autovista Group’s latest webinar: The road ahead: Residual value trends and the next market shift, will air on 14 October at 09.30 BST / 10.30 CEST.

Autovista24 journalist Tom hooker will discuss major used-car market valuation trends with a panel of Autovista Group experts. This includes Dr Anne Lange, product director, valuation apps, Robert Madas, regional head of valuations, and Javier Salgado, director of valuations and forecast experts.

Register now for The road ahead: Residual value trends and the next market shift. It will begin at 09.30 BST / 10.30 CEST on 14 October 2025.

Also, the winners of the Residual Value Award will be announced on 15 October. The honours recognise cars with leading value retention rates across eight categories, using Autovista Group data from 17 European countries.

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