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.
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.
What trends have defined 2025 for automotive remarketing and aftersales companies, and what lies ahead? Paul Marklew, enterprise sales director at Autovista Group, speaks with Tom Geggus, editor of Autovista24.
How has 2025 been for remarketers? What trends have defined this year for them?
Remarketers, such as dealers, auctions and advertising portals, have seen a slow 2025 that has made trading conditions challenging. With current economic uncertainties, including reduced consumer sentiment, there are fewer cars being bought and sold.
Profit margins are being squeezed significantly as dealers compete for the buyers that are in the market. This trend is reflected when looking at residual values (RVs) across the vehicles. Since the COVID-19 pandemic, most markets across Europe have seen a pretty dramatic increase in RVs. Dealers have also enjoyed increased profit margins.
Now we are seeing a rationalisation of the market. Values are dropping towards pre-pandemic levels, at quite a fast rate in some cases. This has resulted in lower profit margins when the vehicles finally go into stock. Additionally, consumers are holding on to their cars for a little bit longer. This has reduced the amount of stock in the market.
How does this compare to the year the aftermarket has had?
Aftersales, like part suppliers for example, are still some of the more profitable parts of dealer businesses. The margins in the car are a bit more difficult, but servicing and maintenance continue to be profitable.
The businesses dealing with aftermarket parts, which are normally more affordable than OEM parts, are seeing an increase in business. This comes as they move towards increased digitalisation and an improved buyer experience. So, aftersales and remarketing are really experiencing the same meta trends in different ways.
Remarketing and consumers
As you mentioned, RVs did soar during the COVID-19 pandemic, and now we are seeing a normalisation. How have remarketing companies dealt with this change?
For starters, there has been a focus on cost and buyer experience. AI and digital car-buying journeys are coming into the mix a lot more. There is also a focus on the consumer experience, and there is a lot of competition in this area. This is because you can only compete so far on price and remain profitable.
Consumers are spending less time in the dealership and more time online. Consequently, some of these online advertising portals, for example, are becoming increasingly important to the journey. So, dealers are trying to capture people online a lot more now, and they are trying to give consumers choice.
Previously, we saw businesses introduce online-only models, particularly during COVID-19. Those models had mixed success and varied longevity. But in the end, the businesses that were more successful with this, created choice for customers.
These buyers can complete as much of the buying journey online as they would like. Then, if they would like to come into a dealership to complete the transaction, that is available to them.
Closed remarketing ecosystem
So how do these digital systems lock in buyers?
Information is king in this area. Dealers are looking at new ways of providing information to consumers, including agentic AI on their websites. This helps customers do the research in the dealer ecosystem, keeping them on their website. Then they are more likely to convert that into a sale in the end.
We are seeing this in the wholesale environment as well. Traditionally, in places like the UK, physical auctions were the way to buy cars. But since COVID-19, the digital acquisition of stock is becoming more common.
Platforms that allow dealer-to-dealer customers to purchase stock digitally, either from other dealers, OEMs, or fleet companies, are becoming more common. The key factors in that are going to be getting the pricing right and accurately describing the vehicle condition.
Electric vehicle remarketing
Another hurdle for remarketing and aftersales is electric vehicles (EVs). How can the relatively low RVs of these vehicles be managed?
The depreciation happens, at scale, in the first life of the vehicle. A lot of first-life EVs go into fleets and leasing. Realistically, that loss is being handled by the businesses that are then remarketing the cars.
But EVs do remain a point of uncertainty. In some markets, they are difficult to insure. In others, they are difficult to source parts for. In some countries, they do not have the best charging infrastructure.
Some of the markets, like the UK, are bucking these trends. RVs are low, but this is mainly due to the fast development of EV technology. There is also a knowledge gap to overcome, with dealers looking to upskill themselves.
Yet, EVs are selling pretty well in the UK, even used models. As long as the dealers buy at the right price, they are not having much difficulty selling them. There are always going to be deviations from that trend, but overall, the UK EV market is pretty strong.
What about in other countries?
What we are seeing a lot of in mainland Europe is the shifting from one country to another. Many used EVs have low RVs within one country, like Germany, for example. But the vehicles are moved to the Nordics, for example, where the used EV market is strong and RVs are less disrupted.
So, if you remarket your vehicle in a country with a low RVs, that is what you will experience. However, if you move it to a country with a stronger used EV market, you avoid absorbing those financial outcomes.
Creaking supply chains
One problem the industry has dealt with this year is disrupted supply chains. How have aftersales businesses managed?
This seems to be a problem more for vehicle manufacturers. For non-OEM parts, business is actually looking pretty good. There are several factors at play.
More insurance companies are looking to control costs. Before, they may have had policies that focused on like-for-like replacements. Those become difficult policies to manage during supply chain disruption as the costs of these parts rise.
Increasingly, they are looking at viable aftermarket alternatives and, in some cases, recycled parts.
When we look at OEM parts and how businesses are trying to adapt to this, digitalisation is a key trend. We are seeing more e-commerce journeys at play. There is also an increase in purchase channels.
Dealers are looking at how they can sell parts directly to consumers online. Again, having the right data to facilitate picking the right part for the right car is key.
Opportunities and challenges
So, moving into 2026, where do you see the biggest opportunities and challenges for remarketing and aftersales companies?
I am sure we will see more overseas investment resulting in the consolidation of dealerships. When the top line is pressured, reducing costs is key. So, dealers are going to do that by investing in growing their businesses through acquisition.
There is going to be investment in digitalisation to reduce costs. They are going to make sure they have good quality data to make sure that they are making the right purchasing and selling decisions.
We will also keep seeing vehicles moving around countries in mainland Europe, ensuring businesses get the best possible price. This is because the desirability and profitability of certain vehicles are different from country to country.
The aftermarket will see something quite similar. Digitalisation, consolidation, and the reduction of costs to ensure profitability. For example, we are seeing a lot of parts wholesalers grouping together to share costs. This is not necessarily acquisition, but the forming of powerful buying groups to create economies of scale.
So, both sides of the market will need to manage the bottom line, where there is less flexibility in the top line. This means AI, digitalisation, and economies of scale.
The UK’s new-car market continued its shaky 2025 run in November, as the government announced electric vehicle (EV) pay-per-mile plans. But did this hamper battery-electric vehicle (BEV) growth, or did something else play a part? Autovista24 special content editor Phil Curry examines the figures.
The UK new-car market saw another monthly volume drop in November, as its rollercoaster ride continued. 151,154 new passenger cars were registered, according to the latest data from the SMMT. This was down 1.6% year on year, marking the sixth monthly volume drop between January and November.
After 11 months of 2025, the UK’s new-car market was up 3.4%, with 1,874,271 registrations. The country is likely to see over two million deliveries for the first time since 2019, the SMMT forecasts. Based on available data, December would need to see a 10.7% decline in volumes to miss this milestone.
Private car sales fell by 5.5% in November. Combined with 0.2% growth in the volume-leading fleet sector, the new-car market was likely to struggle. Business registrations, which make up a small percentage of overall volumes, increased by 18%. This equated to a rise of just 561 units, however.
EVs prop up uneven market
Like other major European markets, the UK is seeing registrations of petrol and diesel models decline each month. However, unlike others, the SMMT merges mild-hybrids with their respective petrol and diesel powertrains.
This means that reporting of hybrids is based solely on full-hybrid (HEV) models. This provides a more accurate view of the market’s performance. Other countries rely on the full and mild-hybrid figures to boost electrified vehicle growth. But in the UK, mild hybrids help to offset internal-combustion engine (ICE) losses.
So, the country’s electrified market consists of models that can run only on electric power for a period of time. However, with lower hybrid figures, the UK relies on EVs, including BEVs and plug-in hybrids (PHEVs), to bolster growth.
In recent months, BEV and PHEV deliveries have helped overcome declines in petrol, diesel and HEV figures. All-electric models are the second-most-popular powertrain in the UK at present, while PHEVs have rivalled HEVs in terms of volumes.
Yet, this makes the UK’s new-car market very precarious. Should one EV powertrain slow, or falter, it can push the entire market into decline. This is what happened in November. While HEVs had a slow month, so too did BEVs. The all-electric powertrain suffered its lowest growth rate in nearly two years, according to the SMMT.
BEV stagnation in November
In total, 39,965 BEVs were registered in November. This was a 3.6% year-on-year improvement, equating to an extra 1,384 units. It was the third time in 2025 that the powertrain registered single-digit growth.
However, the technology did secure a 26.4% share of the market, its second-highest of the year. This was 1.3 percentage points (pp) more than in November 2024. Yet this was also the lowest improvement of the year so far.
Between January and November, 426,209 BEVs were delivered to customers, an improvement of 26%. The technology’s market share sat at 22.7%, a rise of 4pp. The UK’s automotive market will be concerned by this result. This is because the figure is far below the zero-emission vehicle (ZEV) mandate target of 28% for 2025.
What caused the BEV result?
The slow growth in November came despite the government creating an incentive package in July, aimed at increasing BEV uptake. Clearly, such an improvement did not surface last month.
To make matters worse, a recent announcement from the government could hamper EV adoption. This was the announcement that both BEVs and PHEVs would be subject to pay-per-mile tax charges from 2028.
November 2025 has come up against a strong period of comparison. At the end of 2024, carmakers were rushing to deliver BEVs. Brands were making a last push to meet the 2024 ZEV mandated target of a 22% market share.
November 2024 saw BEV deliveries improve by 58.4%. It was the powertrain’s biggest improvement of the year and was followed by a 56.8% rise in December 2024.
Fast forward to today, and some of the financial penalties for missing mandated targets have been relaxed. There is also more flexibility in borrowing against future sales. So, compared to one year ago, carmakers seem less stressed to pull forward BEV deliveries.
It is unlikely that the recent announcement in the Autumn Budget impacted November figures. Even if the early media reports broke the pay-per-mile plans three weeks before, many sales would have occurred beforehand.
Pay-per-mile problems?
The UK market could start to see an impact from the pay-per-mile plans in the coming months. BEVs have seen their financial benefits come under pressure. This year saw the technology become eligible for Vehicle Excise Duty and the Expensive Car Supplement.
The BEV market is crucial for the UK to maintain registration growth, yet recent announcements have increased growth uncertainty. ZEV mandate targets are only going to increase, and the ban on new petrol and diesel cars looms. This makes continued BEV adoption vital.
‘Even in a fragile market, ZEV uptake continues to rise, which is exactly what we need,’ commented SMMT chief executive Mike Hawes. ‘But the weakest growth for almost two years, ahead of the government announcing a new tax on EVs, should be seen as a wake-up call that a sustained increase in demand for EVs cannot be taken for granted.’
‘We should be taking every opportunity to encourage drivers to make the switch, not punishing them for doing so, or else the ambitions of government and industry will be thwarted,’ he continued.
PHEVs provide EV boost
PHEVs were the UK’s best-performing powertrain in terms of volume growth. In total, 18,005 units were delivered, a rise of 14.8%. This equated to 2,318 more units compared to November 2024.
PHEVs secured 11.9% of the market in the month, a rise of 1.7pp. Since April, the technology has consistently held between 11.2% and 12.5% of total monthly registrations, as it pushes to match HEV volumes.
In the first 11 months of the year, PHEVs out-grew all other powertrains, with a registration increase of 34.8%. This equated to a total of 208,245 units and an 11.1% market share. The technology has improved its hold by 2.6pp, second only to BEVs when it comes to share growth.
Combining BEVs and PHEVs, the EV market reached 57,970 deliveries in November, a 6.8% year-on-year rise. This was the lowest volume increase of 2025. It also marked the first time this year the EV market has seen only a single-digit improvement.
Plug-in models controlled 38.4% of the market, up by 3.1pp. After 11 months of 2025, EVs saw an improvement of 28.8%. In total, 634,454 new plug-ins took to UK roads. This was enough for a 33.9% share, up 6.7pp.
Rollercoaster 2025 for hybrids
The UK’s HEV market is experiencing a rollercoaster year. Apart from the plate-change months of March and September, growth has been in single digits. The technology has also endured four months of decline.
November saw the lowest growth of the year, with just 1.3% more HEVs delivered to customers. This equated to a 19,836-unit total, ahead of the same month in 2024 by 245 units. The powertrain took a 13.1% share of the market, up 0.3pp.
The UK figures highlight the impact of mild-hybrids on other major European markets. Many of these countries have seen their overall hybrid registrations dominate monthly deliveries. Conversely, the UK’s HEV sector trails petrol and BEV sales. It is also coming under threat from PHEV volumes.
Electrified market dominates
When hybrid numbers are added to EV figures, the electrified market is leading in the UK. With 77,806 registrations in November, figures were up 5.3% year-on-year. The technology held 51.5% of the market, a dominant position, and a rise of 3.4pp.
During the first 11 months of 2025, the electrified market was not as dominant. It still sat behind ICE and is unlikely to overtake it in 2025. In total, 896,209 units were delivered, a 21.7% year-on-year improvement.
The powertrain group’s market share sat at 47.8% at the end of November. While this did prove a 7.2pp rise, it was also 4.4pp away from ICE.
To finish ahead in the full year, the electrified market has to overcome a deficit of 81,853 units to ICE. In November, the technology registered 4,458 more passenger cars than ICE models.
HEVs played their part in the electrified growth this year. From January to November, 261,755 units were delivered, a 7.5% improvement. This gave the technology a 14% share of the market, a 0.6pp rise compared to the same period last year.
Petrol remains the leading powertrain
Petrol and diesel registrations, including mild-hybrid powertrains, continued to decline in November. The regular drops in unit volume suggest that electrified models will overtake ICE. Should current trends continue, this will likely occur in 2026.
Last month, petrol volumes fell by 5.9%, to 66,180 units. This was still enough for a 43.8% market share, a drop of 2pp year-on-year. Meanwhile, diesel struggled again with a 24% decline. The fuel type’s 7,168-unit volume was enough for just 4.7% of the overall market, down from 6.1% a year prior.
Between January and November, petrol remained the dominant standalone fuel type, by some margin. Its 47% market share was 24.3pp higher than its nearest competitor, BEVs.
Yet this hold was still down on the 53% achieved in the first 11 months of last year. Meanwhile, its cumulative total of 880,331 units represented an 8.3% drop compared to the same period of 2024.
Diesel struggles continue
Diesel has been left behind at the bottom of the UK new-car market. With 97,731 registrations between January and November, the powertrain will likely only just make it to six figures in 2025. By the end of November, volumes were down 15.8%. Its market share of 5.2% was 1.2pp lower than the same time last year.
Combined, the ICE market achieved 73,348 deliveries in November, an 8% year-on-year decline. With 48.5% of the market, it lost its dominance for the third month in succession.
Across the first 11 months of 2025, 978,062 ICE models were registered, a 9.1% drop. However, thanks to eight months of dominance between January and August, it still led the market, with a 52.2% share. This was, however, down by 7.2pp.
So, the regular dominance of ICE is now at an end. It appears 2026 will start with electrified models leading the annual figures for the first time.
New incentives helped propel registrations of battery-electric vehicles (BEVs) to a new high in November. But behind short-term headline highlights, multiple factors are dragging the Italian new-car market down as the year’s end approaches. Autovista24 web editor James Roberts investigates.
The Italian new-car market ended up at a standstill in November. With 0% year-on-year growth, the country’s ongoing registration inertia was reflected in the delivery figures.
In total, 124,228 new vehicles took to Italian roads in November, according to ANFIA data. When compared to 2019, ANFIA confirmed registrations in the first 11 months of this year were 20.2% lower than pre-pandemic volumes.
Electric vehicles (EVs), including battery-electric vehicles (BEVs) and plug-in hybrid vehicles (PHEVs), did much of the heavy lifting in November. BEVs soared to their highest monthly total of 2025. This followed the rollout of new nationwide EV incentives in late October.
As with October, without strong showings from these powertrains, the Italian new-car market would have suffered a tangible fall. Removing these numbers, the market would have witnessed a 11.8% slump.
Between January and November, 1,417,045 new vehicles joined Italy’s car parc, according to ANFIA. This equated to a 2.4% decline year on year, amounting to 35,342 fewer units. While hybrid powertrains provided the largest share at 44.2%, BEVs and PHEVs account for just 5.8% and 6.2%, respectively. Additionally, reduced petrol and diesel uptake continued to drag on the overall market.
Italy’s new-car incentive conundrum
The success of Spain’s soon-to-be-replaced MOVES scheme is a signal of how EV incentives can support new-car market growth. Italy, however, has been gripped by uncertainty and long waits when it comes to new EV subsidies.
In August, the Italian Ministry of the Environment and Energy Security (MASE) confirmed new EV incentives. These were officially launched on 24 October and have helped boost BEV sales in the country.
As part of Italy’s National Recovery and Resilience Plan (PNRR), private consumers can receive up to €11,000 towards a new BEV. This is dependent on family income and the scrappage of a Euro 5 internal-combustion engine or earlier. Meanwhile, small businesses could apply for up to €20,000 for an electric light-commercial vehicle (LCV).
In total, the programme was allocated over €597 million in funding. This was planned to be used until mid-2026, with a target of replacing around 39,000 internal-combustion (ICE) vehicles.
However, these incentives were exhausted within 24 hours of launch. MASE confirmed in a statement. ‘According to data disclosed by Sogei to the Ministry of the Environment and Energy Security, a total of 55,680,000 vouchers were issued, requested by individuals and microenterprises,’ it stated.
One reason for this is that applications had to be submitted prior to the purchase of the new vehicle. Any funds that become available again will be reactivated for new applications.
BEVs boost new-car market
These short-lived incentives seemingly achieved their objective of boosting BEV sales in Italy throughout November. However, in the longer term, with no immediate follow ups confirmed for 2026, there is little cause for celebration.
In November, 15,266 new BEVs were received by customers in Italy. This marked the highest total of the year and a new monthly record. The previous high was set in June 2024 when 13,368 units were registered.
November’s incentive-aided total amounted to a year-on-year increase of 132.5% and an additional 8,701 units. This unsurprisingly secured a new monthly market share high of 12.3% for the powertrain. Compared with November 2024, this resulted in a significant 7 percentage point (pp) gain.
Despite the notable BEV gains recorded in November, longer-term inertia is evident. After 11 months, the crux of Italy’s new-car market issues are evident when assessing BEV fortunes.
From January to November, 82,555 new BEVs were registered in the country. While a 38% year-on-year improvement was positive, the market share upturn proved muted. BEVs made up 5.8% of the Italian new-car market, improving by just 1.7pp year on year. This made it the country’s lowest-ranked powertrain, achieving a 22,751-unit uptick.
PHEVs plough on in November
For the third consecutive month, PHEV registrations hit a triple-digit year-on-year improvement. The ever-popular powertrain recorded 8,664 deliveries in November. This ensured a 117.9% upswing, the second highest of the year, with 4,687 more deliveries than 12 months prior. This achievement meant it took 7% of the overall market, up 3.8pp.
Between January and November, PHEVs provided the headline gains. With 88,492 new cars reaching customers, this enabled an 80.6% year-on-year push for the powertrain.
But as with BEVs, apparent registration highs did little to punch through into meaningful market share gains. After 11 months, the PHEV share stood at 6.2%, the second lowest after BEVs.
Combining BEV and PHEV results into EV registrations, first impressions can be deceiving. Between January and November, the unified powertrains recorded 171,047 deliveries.
This ensured an eye-catching 57.2% year-on-year increase. It also pushed the plug-in market share to 12.1%, a 4.6pp year-on-year increase. Despite this, Italy remains in the EV doldrums. Out of the ‘big five’ European automotive markets, it continues to possess the lowest plug-in share.
Hybrids remain on top
Despite only recording a 0.6% year-on-year registration improvement in November, hybrids remained Italy’s most popular new-car option. However, it seems that the incentive impact powering BEV purchases cannibalised this popularity.
Including full and mild-hybrids, 52,819 new vehicles left Italy’s forecourts, the second lowest monthly total of the year. This resulted in a 0.6% year-on-year improvement. Hybrids also recorded their smallest monthly share this year at 42.5%, up by just 0.2pp.
Widening the scope, 626,139 hybrids were registered across the first 11 months of 2025. This equated to a 7.9% boost on 2024 figures, helping the powertrain to command a 44.2% market share, up from 39.9% a year earlier.
Adding hybrid registrations to EV volumes, November did signal some gains. As BEV numbers reached a new high, the drop in hybrid adoption hampered any significant electrified market gains. From January to November, the electrified group reached a 56.3% share, up from 47.4% 12 months ago.
Stubborn ICE and gas not helping electrification
Month-on-month declines of ICE, encompassing petrol and diesel, are the norm across Europe. Italy has been no exception. However, ICE still controls a stubbornly high market share, which is stunting gains made by electrified models.
Despite this, November did herald a small victory for decarbonisation. The month saw the ICE market share fall to a new low for 2025, hitting 29.5%.
The 36,702 registrations were also the second-lowest result after the holiday-impacted August. This marked the first time this figure dropped below 30%, and year-on-year ensured a 10.7pp share plummet.
However, after 11 months, new petrol and diesel vehicles made up 34.5% of the overall Italian new-car market. Breaking this down, petrol alone commanded a 24.8% share, the second largest after hybrids. Meanwhile, diesel held 9.7% of the market, the third largest.
Italy has another legacy fuel type offsetting electrification. The ‘other’ category, made up of liquified petroleum gas (LPG), compressed natural gas (CNG) and hydrogen fuel-cell vehicles, complicated matters. With an 8.7% market share, it outperformed both PHEV and diesels, registering 10,777 units.
Between January and November, the ‘other’ category quietly chipped away at the haphazard BEV and PHEV gains. This powertrain grouping ended the 11-month period with 9.2% of the market. This figure has proved resilient, falling just 0.2pp. Crucially, it remains above EVs in the pecking order.
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.
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.
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%.
Spain’s new-car market has prospered in 2025, aided by strong electric vehicle (EV) uptake. But could bold new incentives help or hinder this growth? Autovista24 web editor James Roberts examines the numbers and outlines what to expect from the new Auto 2030 Plan.
November marked the 15th consecutive month of growth for Spain’s new-car market. The country saw 94,124 new vehicles registered, according to Autovista24 calculations of ANFAC data. This equated to a 12.9% rise, compared with 12 months prior, amounting to 10,785 additional units.
Between January and November, 1,045,640 new vehicles joined Spain’s roads, based on Autovista24 calculations. This was up 14.7% year on year, with 134,064 more deliveries. This relentlessly positive trend remains distinct from other major European markets, which have witnessed mixed fortunes across 2025.
Strong momentum
‘The Spanish automotive market is ending 2025 with strong momentum,’ stated Ana Azofra, regional head of valuation and insights at Autovista Group. ‘Sales are nearing pre-pandemic levels and have surpassed one million units, with all segments growing, especially the private channel. EVs now represent one in four November sales, showing that Spain has finally accelerated its adoption of this technology.’
EV adoption, spanning battery-electric vehicles (BEVs) and plug-in hybrid vehicles (PHEVs), has buoyed Spain’s new-car market this year. November proved to be no exception. An important driver of this has been the MOVES incentive scheme.
The MOVES plan was introduced in 2019, funded by the EU’s NextGenerationEU recovery funds, and managed in collaboration with Spain’s regional governments. So far €1.7 billion has been allocated. Its main purpose is to provide financial incentives for both EV purchases and the installation of charging infrastructure. This is due to expire on 31 December 2025.
With the imminent cessation of the MOVES III, the Spanish government has announced a radical shake up of EV incentives. It comes in the shape of the Auto 2030 Plan, which was formally revealed on 3 December, as reported by Expansión. Coches.net confirmed it will be rolled out in early 2026.
What is the Auto 2030 Plan?
Described by secretary of state of industry, Jordi Brustenga, as a ‘shock plan for the sector,’ it will replace MOVES. It will be available from early 2026 and will allocate €400 million to aid direct purchases of electric cars.
One of the key changes is that regional administrations will no longer control and allocate funds. Instead, the process will be centralised. It will be underpinned by a long-term multi-point plan, aimed at increasing electrification in Spain.
One often cited drawback of the MOVES scheme centres around delays in payments, red tape and regional inequalities. According to Carwow, 40,000 customers remain on the waiting list for MOVES III funding, despite already having purchased an eligible vehicle. This raises concerns as to how the switch from MOVES to the Auto 2030 Plan could impact these purchases.
In the longer term, the Auto 2030 Plan looks to enable a more agile and unified process. Aligned with this, a single state fund will be created and accessible anywhere nationally. It is hoped this will solve the issue of premature exhaustion of funds under the previous regional framework. Under the MOVES III plan, demand has led to an exhaustion of funds in multiple regions, according to Coches.net.
‘With €1.28 billion in 2026 and 25 structural measures, the plan aims to boost Spain’s industrial capacity in EV and battery production,’ said Azofra. ‘It also streamlines incentives by reducing bureaucracy, centralising aid, and addressing regional disparities.’
Incentives at point of sale
The new scheme looks to enable applications for subsidies at the point of sale, according to El Independiente. This is something many manufacturers, dealers and consumers have urged. It will allow subsidy discounts to be applied at the dealership, saving consumers up-front fees. Under the MOVES incentive system, customers were required to pay for a vehicle and retrospectively reclaim any monies owed.
Unlike the periodically renewed MOVES scheme, the Auto 2030 Plan is seemingly aimed at offering a solid and consistent incentive foundation. Central to this is Spain’s aim to phase out the sale of internal-combustion engine (ICE) vehicles by 2035.
Coupled with this, the Auto 2030 plan seeks to boost the domestic automotive industry and connected innovation. In particular, the plan will look to expand the country’s EV charging infrastructure, allocating €300 million in this area.
Despite Spain’s relatively strong new-car market, there have been consistent calls from industry bodies to solidify EV incentive security. It seems that the Auto 2030 Plan has gone some way to alleviating these concerns.
‘In addition to breaking down bureaucratic barriers, the new plan also seeks to remove barriers related to charging infrastructure, an urgent requirement if demand is to grow sustainably,’ affirmed Azofra.
However, the new plan excludes leasing companies, which have been major drivers of electrification in the market. This sector is exploring alternatives to continue expanding its fleets in a sustainable and competitive manner, potentially through tax benefits or direct discounts.
‘Overall, the market shows vitality, supported and backed by state initiatives that now aim to ensure that this positive trend becomes consolidated, both on the demand side and within the industry, so that Spain does not miss out on opportunities in this field,’ concluded Azofra.
EVs charge Spain’s new-car market in November
November saw 9,318 BEVs reach customers in Spain, a 60.9% jump in registrations compared with the same month in 2024, Autovista24 calculates. This ensured a 9.9% market share, up 3 percentage points (pp) year on year.
PHEVs also enjoyed a strong penultimate month of the year. The powertrain recorded 12,001 sales, the third-highest monthly total in 2025, based on Autovista24 analysis. This ensured a 146.3% increase on figures from one year prior. As a result, PHEVs made up 12.8% of the overall monthly new-car market.
Combined BEV and PHEV numbers totalled 21,319 registrations in November. According to Autovista24’s calculations, this meant a 99.9% year-on-year volume increase. It also ensured a plug-in powered market share of 22.7%, a sizeable 9.9pp year-on-year leap.
Focusing on this year, while this is a comparative increase of 0.3pp compared with October’s share, it was down 1.7pp on August’s high watermark of 24.4%.
Spanning the first 11 months of 2025, EVs accounted for 19.3% of the Spanish new-car market according to Autovista24 calculations. This also marked a 100.1% year-on-year increase, with 201,747 units delivered.
The big question is, with new EV incentives freshly rolled out, can this momentum continue, and even build, in 2026?
Hybrid market share high
For the second consecutive month, hybrid registrations, including both full and mild-hybrid technologies, rebounded in Spain, exceeding 40,000 units. Shadowing a wider European trend, this powertrain has commanded a dominant market share in the country this year.
After recording an annual low of 39.1% market share in June, hybrid registrations reached 43.6% in November, a 1.5pp year-on-year lift. This was achieved with 41,038 units sold in the month.
From January to November, hybrids occupied 41.8% of the total Spanish new-car market, a healthy year-on-year upswing of 3.7pp. In total, after 11 months of the year, 437,547 hybrids have been registered, according to Autovista24 calculations. This was the highest volume of any powertrain.
As a result, hybrids are doing a lot of the heavy lifting when it comes to overall electrified figures in Spain. Adding hybrids to the EV total provides an electrified vehicle share of 61.1% in the first 11 months of 2025. This is a new high for 2025, and a notable 12pp year-on-year increase for the powertrain combination.
ICE holding on for winter?
As the end of the year approaches, the decline in ICE registrations continues. November saw further falls for both new petrol and diesel vehicles in Spain. For petrol, a 23.9% year-on-year volume drop marked the biggest monthly decline of 2025.
According to Autovista24, the 21,150 units registered ranked as petrol’s third lowest total this year. Despite this, petrol power still commanded a 22.5% market share, the second highest after hybrids. However, this was underpinned by a 10.8pp slide over the last 12 months.
Petrol’s decline has been evident across the year. After 11 months, volumes were down 14.6%, with 294,417 registrations. The accumulated market share of 28.2% was down by 9.6pp. Diesel also saw a double-digit decline in November. Autovista24 calculated that just 4,979 units took to Spanish roads, as the fuel type continues to hover around the 5% market share total.
Adding together petrol and diesel totals, overall ICE registrations held 27.8% of the monthly market in November. This equated to a 13.2pp fall. This fall in share was significant over the first 11 months of 2025, with unified ICE registrations still ahead of EVs.
Combined, petrol and diesel totals hit 352,199 in the period. Despite a year-on-year unit fall of 18.8%, the grouping held 33.7% of the market. The overall plug-in share lagged this by 14.4pp according to Autovista24 analysis.
The latest overhaul to Spain’s EV incentives will be key to eroding the resilient and significant presence ICE power has on the country’s new-car market. Can Auto 2030 measures provide a knockout blow, or at least stunt petrol sales, in 2026?
After three months of improvement, the new-car market in France returned to decline in November. With 2025 now more likely to see overall volumes fall, how have hybrids contributed to the market’s performance? Autovista24 special content editor Phil Curry examines the latest data.
November saw registrations fall by 0.3% year on year. 132,929 passenger cars made their way to customers, according to Autovsta24 calculations based on data from PFA. This was a deficit of just 390 units compared to the monthly total in 2024.
France has seen struggles in its new-car market this year. It was not until August that any growth was registered. Now, November’s result brings a run of three months of positivity to a close.
Across the first 11 months of 2025, the country’s market dropped by 4.9%. In total, 1,459,227 new cars were delivered, based on Autovista24 analysis. This was up by 0.5 percentage points (pp) compared to October’s decline. However, this did not spark hope for a turnaround to a full year of growth.
At the end of November, there was a gap of 75,527 units compared to the same 11-month period in 2024. Therefore, the market would need a 41.1% jump in December’s figures to see any full-year growth. In this case, it is likely that France will experience a second-consecutive year of registrations decline.
Powertrain performance in France
Like other major European markets, France has been hampered by poor results generated by petrol and diesel powertrains in 2025.
However, the country has also seen the plug-in hybrid (PHEV) market struggle. The technology has not seen a single month of year-on-year improvement between January and November, adding to the French declines.
The battery-electric vehicle (BEV) market has also suffered, with five declines in the first six months of the year. However, following changes to the ecological bonus in July and the return of social leasing, the powertrain has seen gains.
This may have come at the cost of hybrids. Combining full and mild hybrids, the market saw double-digit growth in all but one month across the first three quarters. This improvement slowed in October, while November resulted in the lowest hybrid improvement of 2025.
With such fluctuations across all powertrains, a full-year decline is to be expected. However, the lower volume base could help the market achieve growth in 2026.
Hybrid slowdown
France’s hybrid market saw just 3.3% growth in November. A total of 54,212 units were registered in the month, an increase of 1,750 models. The powertrain continued to lead overall, accounting for 40.8% of all deliveries, a 1.4pp increase year on year.
However, November’s improvement was the lowest volume increase of 2025 so far. Having started 2025 well, there has been a notable slowdown in improvement. Since a jump in August, the market has started to level out again.
This has likely added to France’s woes when it comes to overall growth. Hybrids drove registrations for most of 2025, making up for losses in petrol and diesel units.
To highlight France’s reliance on hybrids, in January, the country’s new-car market declined by 6.2%. If the powertrain had not been included, overall volumes would have fallen 28.5%, a difference of 22.3pp. In November, the 0.3% overall decline would have been at 2.6% without hybrid inclusion, a difference of 2.3ppn on the actual result.
But while the powertrain’s deliveries have slowed, they were still the best-performing across the first 11 months of the year. With 644,824 deliveries, the technology was up 24% compared to the same point last year. This total represented 4.2% of the market, up from 33.9% a year prior.
BEV bounce back continues
The hybrid slowdown has seen BEV registrations soar. In November, 34,294 all-electric units were delivered to customers, a rise of 47.5%. This was the biggest growth of the month, with an additional 11,039 all-electric models delivered.
The powertrain is now comfortably the second-most popular choice in France, having taken the position in September. Last month, it achieved a 25.8% share in the country, up 8.4pp year on year. This was also its highest market share of the year.
The turnaround in the BEV market has been remarkable. After six months of 2025, registrations were down by 6.4%. Since the introduction of amended incentives in July, monthly improvements followed. This meant that after 11 months of 2025, deliveries were up 9.1% year on year. This provided a 19.5% market share, an increase of 2.5pp against the same period in 2024.
While BEV deliveries are improving, the PHEV market is in serious decline. November saw just 9,495 registrations for the powertrain, an 18.7% fall. Their 7.1% market share was down by 1.7pp compared to the same month in 2024.
This left the technology 24.9% down 11 months into 2025. A total of 91,355 units have been registered, a difference of 30,326 deliveries against last year. With a 6.3% market share, the powertrain is performing better than diesel, but still 1.6pp lower compared to 2024.
Hybrid and BEV boosting market
The performance of the PHEV market has dragged down the overall electric vehicle (EV) sector in France.
Combining both BEVs and PHEVs, EV registrations improved by 25.3% in November. This equated to an extra 8,851 units compared to November 2024. The grouping was still ahead of the internal-combustion engine (ICE) sector, but has been unable to pull away at the rate of other major European markets.
EVs held 32.9% of the total registration volume in the month. This was its highest share of 2025, managing only a 6.7pp year-on-year rise.
Between January and November, EVs were 1.7% down compared to the same period of 2024. The powertrains accounted for 25.8% of the whole market total, up just 0.9pp. This was still behind the ICE share, with a 0.7pp difference between the two.
To highlight just how dependent the EV market is on BEV growth, the sector was 8.6% down between January and September. The pull back to a drop of 1.7% is all to do with the growth in the all-electric segment.
Adding hybrids into the mix, the electrified market grew by 12.1% in November, with an extra 10,601 units taking to French roads. This meant 73.7% of deliveries in the month featured an electric element, up 8.1pp higher year on year.
After 11 months of 2025, electrified deliveries were up 13.1%, thanks to the performance of hybrids and BEVs. The grouping accounted for 70% of the total market, up 12.2pp.
Petrol pulling down
While BEVs and hybrids grew, petrol and diesel pulled the market downward. Petrol registrations fell by 30.1% in November, with 23,358 registrations.
This meant a 17.6% market share, a 7.5pp fall compared to the same month of 2024. This was the lowest share of the year, and a significant 1.6pp drop compared to October 2025. Excluding the powertrain’s figures, deliveries in the month would have grown by 9.7%.
In the first 11 months of the year, petrol deliveries were down 32.1%, with 315,122 units. This is a drop of 148,951 units year on year. Meanwhile, the fuel type’s market share fell by 8.6pp year on year, to 21.6%.
Diesel held the lowest volume of the major powertrains in November. With just 7,059 units, registrations were down 20% compared to the same period last year. The powertrain held 5.3% of the market, down by 1.3pp.
Between January and November, diesel deliveries declined 36.7% compared to the same period in 2024. The 4.9% market share was 2.5pp lower year on year.
Combining petrol and diesel, the ICE market fell 28% last month, with a deficit of 11,814 units. Having dominated the country’s new-car market for years, its share fell to 22.9%, a drop of 8.8pp.
In the first 11 months of the year, ICE managed to hold just 26.5% of total registrations, an 11.1pp fall. With a 33% decline in deliveries, equating to 190,557 fewer units, the market is in freefall, as buyers turn to alternative powertrains.
Amid varying scenarios across Europe’s major used-car markets, one trend remains consistent: falling residual values (RVs). But how notable was November’s performance compared to recent months? Tom Hooker, Autovista24 journalist, unpacks the data.
These seven countries have suffered year-on-year %RV drops in every single month so far in 2025. This excludes France from January to April. Yet, November’s performance still stood out, for all the wrong reasons.
It marked just the third time this year that all seven markets also posted a month-on-month %RV decline. This unwanted feat was also recorded in April and October.
Used-car values saw the steepest year-on-year fall in Italy, dropping 4.6 percentage points (pp) to 44.8%. The country also posted the biggest month-on-month %RV decline of 1.3pp.
This was followed by Switzerland, which saw a year-on-year fall of 4.4pp to 42.4%. Conversely, used-car values in Austria held up the best compared to November 2024. %RVs fell by 0.5pp year-on-year to 47.2%.
Germany saw a slightly poorer performance relative to 12 months prior, suffering a 1.8pp %RV decline to 48.2%. However, this equated to just a 0.1pp fall from October, the lowest month-on-month decline of all used-car markets observed.
Lower used-car activity in Austria
‘Austria’s sales-volume index (SVI) for two-to-four-year-old passenger cars rose by 2.7% in November compared to October. However, year on year, the SVI declined by 6.4%, reflecting lower market activity and headwinds,’ stated Robert Madas, Autovista Group’s regional head of valuations.
The active-market volume index (AMVI) also increased month on month by 1.9%. Compared to November 2024, the supply was up by 1.2%. This indicates a slight recovery in supply within this age bracket.
The average time needed to sell a used car in November was 65 days, up marginally by 0.4 days compared to October. Year on year, this metric improved significantly by 4.4 days, suggesting an acceleration in turnover.
Diesel-powered used cars were the fastest-selling of any powertrain, taking an average of 59.5 days to sell. This was closely followed by petrol-powered models at 62 days. Then came plug-in hybrids (PHEVs) at 70.9 days and full hybrids (HEVs) at 71.9 days.
Battery-electric vehicles (BEVs) showed significantly improved turnover speed but continued to take the longest time to sell at 80.6 days.
Mixed residual value result
%RVs declined to 47.2% in Austria during November. This marked a 0.3pp drop from October and a 0.5pp year-on-year decrease. In absolute terms, RVs rose slightly month on month and year on year. Compared to October, this translated to a 0.2% rise and a 7.1% increase set against November 2024.
HEVs retained the highest trade %RV at 49.8%, followed by petrol cars at 49.2%. Then came diesel models with 48% and PHEVs with 45.1%. BEVs held the lowest %RV once again, at 37.6%. However, this was an improvement of 0.9pp month on month.
‘Looking ahead, %RVs are expected to remain stable until the end of the year. Forecasts suggest the same level by the end of 2025 compared to December 2024. A 0.7% decline is then expected in 2026, followed by a 0.6% decrease in 2027,’ noted Madas.
Used-car values fall in France
%RVs fell slightly in France during November. Both petrol and diesel-powered cars, as well as PHEVs, recorded marginal decreases. For the former two internal-combustion engine (ICE) powertrains, this does not signify a recurring trend.
‘Values of petrol and diesel-powered cars have not been heavily impacted by the overall market’s slumping %RV trend, which began at the start of 2023. Meanwhile, November’s PHEV result marked a continuation of its decline,’ explained Ludovic Percier, Autovista Group’s senior RV analyst for France.
The decrease in petrol and diesel %RVs was limited. This was because drivers are waiting to replace their current car. Furthermore, fewer new ICE-powered cars are entering the used-car market.
‘Petrol and diesel-powered used cars followed the month’s general trend. Even though strong demand remains for both fuel types in France, potential buyers have less money to spend on these vehicles due to a weakened global economy. Combined with this, their prices are still too high on the used-car market,’ he highlighted.
As many used-car buyers still do not accept the higher prices of PHEVs, the powertrain remained in a %RV decline. However, models with a range above 60km are less impacted by the downward pressure on %RVs.
The average days to sell a PHEV fell slightly last month. Yet, a turnover average of 70 days is still too long for dealers, even with transaction prices continuing to decrease.
PHEV demand and supply remain unbalanced. In previous years, many vehicles were sold to fleets due to fiscal advantages. However, private used-car buyers have no interest in paying such a high transaction price for PHEVs. The powertrain endured a 3.3% fall in the SVI. Smaller and cheaper PHEVs were the easiest to sell.
Hybrid demand increases
HEVs suffered a marginal decrease in November. The technology was once again the fastest-selling powertrain on average. Moreover, it took around five days less to leave forecourts compared to the previous month.
‘Used HEV demand is increasing in France. However, carmakers cannot risk adding big price premiums to these models. This would jeopardise the powertrain’s RVs,’ said Percier.
Three of the five fastest-selling HEVs came from Toyota. The RAV4 took the shortest time to sell of any HEV, while the Yaris and the Corolla also saw quick turnaround speeds. The other top spots were filled by the Hyundai Tucson and the Kia Niro.
%RVs of all-electric models saw a slight increase month on month. The technology also witnessed a rise in list prices, compared to October and 12 months ago. This was due to more premium vehicles appearing in the data. For example, the Audi e-tron GT was the fifth-fastest-selling BEV in November.
Out of all powertrains, BEVs retained the lowest percentage of their original list price after 36 months and 60,000km. The technology recorded a %RV of 35.3%, down 2.1pp year on year.
‘BEVs are being pushed on the new-car market by incentives. However, the current purchase incentive scheme is set to expire at the end of this year. Instead, social leasing is taking the lead with new fiscal advantages for BEV company cars,’ he commented.
Yet, this once again creates an unbalanced demand between the new and used-car markets. In turn, this can impact RVs.
Germany’s increasing used-car demand
Following a modest increase in September and a stable trend in October, used-car demand in Germany strengthened in November. The SVI rose by 4.6% month on month, marking a notable improvement. Year on year, the SVI was stable, indicating that demand was at the same level compared to November 2024.
‘The AMVI climbed by 6.1% compared to October. The used-car market witnessed an even stronger 17.3% increase year on year. This suggests a significant recovery in supply within this age bracket,’ noted Madas.
The average number of days needed to sell a used car in November was 62.4 days. This was one day longer than October and 1.3 days slower than November 2024. The average turnover speed of BEVs slowed month on month. However, the technology was the fastest selling of any powertrain at 60 days.
Then came HEVs at 61.2 days. Diesel-powered cars followed closely at around 62.2 days, while PHEVs took 62.8 days to sell. Petrol-powered cars sold the slowest, at 63.3 days.
Petrol leads used-car market
%RVs declined slightly to 48.2% in November. This was down 0.1pp from October and 1.8pp year on year. In absolute terms, the trade RV fell to €21,438. The result marked a 0.8% month-on-month decrease, but a 2.1% increase compared to November 2024.
Petrol cars led the market with a %RV of 50%. Then came diesel cars at 49.3% and HEVs at 49.1%, followed by PHEVs at 44.1%. BEVs increased slightly but again retained the lowest level of value at 37%.
‘RVs have stabilised recently in Germany. However, the level remains significantly lower than in previous years, and demand is still subdued. Therefore, RVs can be expected to remain under pressure,’ he outlined.
By the end of 2025, %RVs are forecast to decrease by 2.7% compared with December 2024. Pressure will probably ease in 2026, with RVs forecasted to suffer a smaller decline of 1.4%. This is projected to further soften to a 0.7% drop in 2027.
Italy’s weakened outlook
During November, RVs declined more sharply than expected in Italy. Values dropped from 46.1% in October to 44.8%, causing a downward revision of the 2025 RV outlook.
‘A year-end decrease of 9.2% compared to 2024 is now projected. Given that this trend shows no signs of slowing, further declines are anticipated in 2026. However, this is expected to be at a more moderate pace,’ forecasted Marco Pasquetti, Autovista Group’s cluster head of forecasting for Spain and Italy.
‘Despite these figures, the used-car market should not be considered in a crisis when we look at volumes. Analysing adverts from major online used cars portals indicates that stock levels are only marginally lower than last year, with the AMVI falling by 4.6% year on year,’ he outlined.
Meanwhile, sales remained broadly stable, with a 0.7% uptick in the SVI compared to 12 months prior. This trend was confirmed by change of ownership data. Additionally, the average time to sell a vehicle has improved significantly, dropping by eight days compared to October.
Diesel-powered cars and liquified petroleum gas (LPG) models recorded steeper-than-expected month-on-month %RV declines, at 1.5pp and 1.9pp respectively. These fuel types had previously shown resilience against the overall declining trend in RVs, making this result noteworthy.
BEVs and PHEVs also saw substantial drops of 1.2pp and 2pp, respectively. However, this comes as less of a surprise given their overall performance throughout 2025. The two technologies have consistently lagged behind the market average. All-electric models trailed the market average by 17.9pp in November.
Spain’s new-car market aids supply
‘Spain’s new-car registration figures in October provided three important conclusions. Firstly, monthly deliveries exceeded pre-pandemic levels for the first time,’ commented Ana Azofra, Autovista Group’s head of valuations and insights, Spain. ‘Secondly, we are seeing a clear dominance of hybrid vehicles, which accounted for 43.2% of all registrations.’
‘Thirdly, Spain continues to make steady progress towards electrification. PHEVs and BEVs achieved a market share of 22.4% in October. This was to the detriment of internal combustion engines. For example, diesel vehicles accounted for only 5.6% of sales,’ she explained.
Meanwhile, Spain’s current electric vehicle (EV) incentive scheme, the MOVES III Plan, is being revised. The new scheme will be titled Auto Plan 2030. Further details of the plan will be announced in December, as reported by El Independiente.
The system looks to revitalise the industry, infrastructure and consumer demand. This could help maintain the current pace of growth in the market share of EVs.
Longer used-car selling times
This demand is also evident in the second-hand market where sales of BEVs and PHEVs have grown at a steady pace. This was aided by increased supply and more affordable transaction prices.
This was particularly evident for PHEVs. After 36 months and 60,000km, the technology saw trade residual values on the second-hand market fall by an average of around €400.
Average prices for other powertrains, including petrol and hybrid models, fell slightly. Meanwhile, absolute RVs for diesel-powered cars rose marginally. The fuel type still accounts for half of all used car sales.
‘However, it is important to monitor metrics that show some wear and tear, in what has been such a positive year,’ said Azofra.
For example, it took 12 more days to sell a 24-to-48-month-old used car in Spain compared to the previous month. The current average is 77.5 days, a figure that was comfortably improved upon by the month’s fastest-selling models. The Toyota Yaris Cross, the Kia Rio and the MG ZS all took around 47 days to leave forecourts on average.
Switzerland’s used-car market pressure
‘After a slight decline in October, used-car demand in Switzerland softened further in November. The SVI edged down by 0.6% month on month and was 2.1% lower year on year. These two results signal that pressure remains on the market,’ stated Madas.
‘The AMVI also slipped by 0.5% compared to October. Year on year, supply fell sharply by 7.8%. This confirmed a continued tight supply of used cars in this age bracket,’ he noted.
%RVs declined to 42.4% in November. This represented a 0.3pp drop from October and a 4.4pp decrease compared to November 2024. In absolute terms, the trade RV rose slightly to CHF 26,320. Compared to the previous month, this was a rise of 0.3% month on month but down 4.5% year on year.
HEVs retained the most value of any powertrain in November by far at 47%. Then came petrol-powered cars at 43.8%, diesel-powered models at 42.1% and PHEVs at 40%. BEVs continued to be the worst-performing powertrain, holding only 35.8% of their original list price.
BEVs improved turnover rates
The average number of days to sell a used car in November was 77.1 days, up 0.5 days compared to October. Year on year, this metric improved significantly by 6.6 days, indicating faster turnover.
Petrol models sold fastest at 73 days, followed by HEVs at 77.6 days and diesel cars at 79.5 days. BEVs improved significantly year on year, with an average turnaround time of 82.1 days. This meant they sold faster than PHEVs, which took 87.5 days to leave forecourts.
%RVs are forecast to decrease in the coming years, but at a slower pace. By the end of 2025, %RVs are expected to fall by 7.8% compared to December 2024. A further 1.7% decline is anticipated in 2026, with a 0.4% drop projected in 2027.
UK’s cautious used-car dealers
‘November’s used-car market showed steady activity with some notable shifts. At first glance, the average time to sell a 24-48-month-old used car rose to 37.1 days. This was an increase of 3.2 days compared to October, which might suggest a slowdown,’ outlined Jayson Whittington, Autovista Group’s regional head of valuations, UK.
‘However, the SVI tells a different story, showing sales activity actually strengthened, with 8.5% more cars leaving forecourts during the month. Conversely, the AMVI reported 4.7% fewer cars advertised for sale. This indicates dealers are not replenishing stock at the same pace they are selling.’
‘This could point to demand outstripping supply. However, it is more likely that dealers are exercising caution as the year-end approaches. They may be becoming more selective in their acquisition strategies during what is traditionally a quieter period,’ he commented.
Stock moving quickly
Despite the longer selling time in the UK, the country’s performance remains strong compared to other European markets. At 37.1 days, UK dealers sold cars 40 days quicker than in Spain or Switzerland.
Its turnaround rate was nearly 29 days faster than France, 28 days ahead of Austria, and over 25 days quicker than Germany. The UK’s average was also more than 23 days ahead of Italy, the closest market in comparison.
%RVs softened slightly in November, averaging 48.7% of the original cost new price. This equated to a decline of just 0.2pp from October and 2.4pp lower than November last year.
‘Overall, used-car market activity appears fairly busy for the time of year. Dealers seem to be selling well, while keeping a closer eye on what stock they buy as the year comes to an end,’ concluded Whittington.
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.
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.
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.
What automotive trends have fleets navigated this year? What do these companies need to prepare for ahead of 2026? Tim Wellman, enterprise sales director at Autovista Group, answers these questions and more with Tom Geggus, editor of Autovista24.
How have fleets been performing this year? What are their big takeaways from 2025?
This year has been reasonably positive for fleet customers in general. Certainly, the post-pandemic supply shortages are well behind us, and new vehicle availability seems reasonable.
I do see some movement in terms of who is taking market share in the fleet sector. We have seen some changes across selected fleet companies throughout 2025. But overall, the fleet sector seems a reasonably positive segment.
Supply chains have been back in the news with the potential disruption of Nexperia chips, causing carmakers some alarm. Has it also concerned fleets?
Fleet clients predominantly source their vehicles via OEMs. So, any manufacturer lead concerns will naturally impact fleet suppliers. Constriction on supply chains due to the Nexperia chip shortages will inevitably wash through to fleet operators.
The COVID-19 pandemic was a huge lesson for the whole industry in terms of supply chains. How have fleets tried to prepare themselves for disruptions ahead?
Post pandemic, we have seen significant valuation volatility, and the push and pull of supply and demand are playing their part.
There certainly has been some stabilisation post pandemic, but not across all fuel types. There are still prominent spikes evident in our data when comparing battery-electric vehicles (BEVs), internal-combustion engines (ICEs) and plug-in hybrids (PHEVs). This typically varies by each European market.
Fleet providers definitely have an appetite for data insights and intelligence around valuation movements. This is unsurprising given the overarching financial and regulatory frameworks mandating responsibility for the asset portfolios under their care.
Fleets boosted by BEVs?
Speaking of regulation, electrification has been a big deal for fleets. Do you think BEVs have provided them with positive results? What has the reality been of defleeting these models?
The onward march to carbon net zero is critical, and fleets take up around 60% of new vehicle registrations across Europe. So, this is naturally going to be a BEV route to market for many consumers and businesses.
Many all-electric registrations throughout Europe are driven by government grants, but also by advantageous breaks in company car taxation. This drives the adoption of cleaner, greener vehicles superbly well.
However, there are some headwinds that interlace with all of this in terms of the used BEV market. While we see good numbers of all-electric registrations being driven to market by legislation, that does not exist for second-ownership. This is having a material impact on resale values that are under constant pressure.
We have seen residual values (RVs) for BEVs impacted quite heavily this year, certainly in some European markets. Is there anything that fleets can do when it comes to observing those values?
Every fleet operator needs to understand the month-to-month valuation movements in their asset portfolio. With the relevant insight and intelligence across those asset portfolios, fleet operators can make informed decisions on whether to extend the leasing agreements or look to remarket assets sooner.
We are seeing an emerging trend among more fleet operators. They are now looking very closely at their remarketing efforts. Where it is evident, there is a disparity in resale values across European countries. It may be the case that a given tranche of vehicles may afford a better remarketing price in a neighbouring market.
So, being acutely aware of valuation trends across borders, particularly throughout Europe, is really important. If you are seeing potential BEV losses in France, for instance, you may be able to mitigate some of those losses by remarketing in Germany or Spain.
Attentive fleet managers are looking to those neighbouring markets to optimise their remarketing revenues and alleviate unplanned losses.
New brand boom for fleets?
Europe has seen the entrance of new brands over the last few years. Are these newcomers going to see a spike in fleet purchases given their affordability and advanced technology? Or are established brands going to hold firm?
We know some of the Chinese brands coming to market are doing so very professionally, with some fantastic products. These products will naturally challenge some of the established, traditional OEMs.
There are only so many consumers and businesses across Europe that are going to purchase cars. This means there will be fluidity in which brands these people gravitate towards.
One thing that will always remain fundamental in the fleet, finance, and leasing sectors is the importance of both RVs and cost new prices. A strong brand with robust RVs is better positioned to compete across European markets, standing firm against other OEMs.
Ultimately, list price and RVs are critical factors that drive competitiveness and long-term performance.
One technology we have seen become increasingly prevalent is advanced driver-assistance systems (ADAS). Are fleets demanding this kind of technology, or is it just an added cost?
There is an important balance to consider here. As a responsible employer, there is a duty of care owed to company car drivers and vehicle owners.
Providing a vehicle equipped with ADAS not only supports that duty of care but also demonstrates a commitment to protecting employees in the best way possible.
While there may be additional costs associated with this, the value of safeguarding employees while they are on the road representing the business is significantly greater.
Health and safety considerations within fleet management are central to this approach. Enhancing vehicle safety features remains a key component of responsible fleet operations.
How can fleets prepare for 2026?
What do you think are the biggest challenges for fleets in 2026, and what are the greatest opportunities for them?
In terms of the biggest challenge, we are seeing a huge uptick in BEV fleet adoption. We have already discussed the value volatility of used BEVs. We have also got new battery technologies and competitive entrants coming to market.
There will always be some downward pressure on older batteries being surpassed by newer technology. We will also see positive adoption of challenger entrants.
The RVs of all-electric models will continue to come under pressure in the foreseeable future. With that in mind, this will certainly be one of the biggest challenges for fleet companies in 2026 and potentially for years to come.
The biggest opportunity in these scenarios is being as agile as possible; Looking at new strategies for remarketing these BEVs and ensuring that any fluidity in those residual values is managed in the best way possible. I think fleet companies that are agile, reactive and keep a very close eye on what is going on in the market will fare best.
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.
