Segment: OEM

Should a slow start for the EU’s new-car market cause concern in 2026?

For the second consecutive year, the EU saw a fall in new-car registrations during January. But is this trend a reason for alarm in 2026? Plus, is the tide turning away from hybrid dominance towards a more electrified landscape? James Roberts, Autovista24 web editor, assesses the latest data.

The EU’s new-car market kicked off 2026 with a year-on-year decline in January. A total of 799,624 new cars were registered across the 27 member states, according to Autovista24 calculations of ACEA data.

This marked a 3.9% year-on-year decline, the second consecutive negative start to a year. In total, just 10 EU member states saw year-on-year increases in new-car registrations during January. The result brought an end to six months of consecutive growth, with the EU’s largest markets witnessing varying fortunes.

Germany endured a troubled start to 2026 with a 6.6% slide in new-car deliveries. With 193,981 units registered, the EU’s largest market saw falls in all but two powertrain variants. Following a disappointing 2025, France followed suit with a 6.6% drop and 107,157 newly registered vehicles.

Meanwhile, Spain eked out a 1.1% increase in volumes, with new electric vehicle (EV) incentives yet to find their feet. Italy fared the best of the ‘big four’ EU markets. It recorded a 6.2% volume increase, with 141,993 new cars taking to the country’s roads. This was boosted by a significant uptake in plug-in hybrid (PHEV) demand.

Hybrid popularity reaching a peak?

In 2025, hybrids, including both mild and full-hybrid versions, were the most popular new powertrain for drivers in the EU. January 2026 provided a continuation of the trend. However, this could change as the year develops.

In total, 308,364 new hybrids took to EU roads in January. This equated to an upswing of 6.2% and 18,024 additional units. This strong start to the year ensured a new 38.6% market share high, up 3.7 percentage points (pp).

Amid its overall January decline, Germany saw hybrid volumes drop by 1.8%. In total, 58,206 new models featured the technology in the month. This followed on from marginal growth in December. As the EU’s biggest new-car market, Germany sets the stage in terms of powertrain demand. The technology may have reached a natural peak in the country, as the tide shifts towards EV sales.

For France, January brought stagnant hybrid demand, with a 0.1% year-on-year improvement. Conversely, Spain witnessed a 9% increase, while 74,422 new hybrids joined Italy’s car parc, capping a 24.9% boost.

In total, 15 of the EU’s 27 nations recorded year-on-year hybrid gains. Following a year in the doldrums, Estonia registered the highest upswing at 158.3%. Bulgaria also saw triple-digit hybrid lift of 140%. Austria, Czechia, the Netherlands and Portugal all witnessed hybrid growth.

However, Poland, the EU’s fifth-largest market in terms of overall volumes, saw a 17.2% year-on-year decline in hybrid registrations. Meanwhile, the country continued a trend of strong EV adoption, suggesting a shift towards fully-electric cars.

Solid start to 2026 for EVs

EV uptake, made up of battery-electric vehicles (BEVs) and PHEVs, appeared strong across the EU in January. However, this was measured against a comparatively low baseline 12 months ago. The plug-in share equated to 29.1% in January as a total of 232,971 plug-in models made their way to customers. This was up 6.9pp from 12 months prior.

Breaking down the powertrains, 154,230 new BEVs made their way to EU customers in January, up 24.2%. This ensured a market share of 19.3%, up 4.4pp year on year. Meanwhile, PHEVs accounted for 9.8% of new-car volumes with 78,741 vehicles registered. This equated to a 2.4pp uplift. Volumes increased by 28.7%, the fastest growing of all powertrains.

Breaking down EU EV uptake

The EU’s largest markets underwent mixed fortunes in January when it came to new BEV adoption.

Germany returned buoyant all-electric vehicle numbers in the month. In total, 42,692 BEVs were registered, a 23.8% year-on-year increase. This was coupled with a healthy 23% lift to PHEV figures, amounting to 21,790 units. This came as a new domestic incentive framework, retroactively available from 1 January, was rolled out.

France saw a 52.1% increase in BEV registrations. In total, 30,307 battery-powered models reached customers. This was assisted by a combination of tax reduction, infrastructure support and regulatory incentives. However, this comes amid wider market declines.

Fired by incentives, Spain proved a consistent BEV powerhouse in 2025. Despite measures changing at the end of last year, January was a good month. In total, 6,472 new BEVs meant a 29.1% delivery increase. Meanwhile, PHEV demand soared by 66.7% year on year, amounting to 8,740 units. Domestic industry bodies have urged for clarity regarding incentives, hoping to ensure the country’s electrification can continue in 2026.  

Poland continued its 2025 trend. January saw year-on-year BEV increases of 216.1%, the highest figure in the EU. This was achieved with 3,544 units. Coupled with this, Polish PHEV registrations jumped by 95.7%. Demand for these powertrains has been facilitated by the country’s NaszEauto incentives programme, which was launched in 2024.

PHEV power proving important

Of the EU’s major new-car market players, Italy saw PHEV popularity come to the fore in January. In total, 11,638 new models made their way to customers, up 134.2% year on year. Industry body UNREA highlighted an expanded range of models and an attractive tax framework as motivation for this healthy business.

The BEV market saw a notable decline in the Netherlands, down 35.4% fall in January. However, the reverse was true for PHEVs. In total, 8,025 new plug-in hybrids left Dutch forecourts, ensuring a year-on-year boost of 49.1%.

Austria also witnessed double-digit increases in both BEV and PHEV registrations in January, with 23% and 66.7% growth, respectively. This came despite there being no EV purchase subsidies in the country, as written by the European Alternative Fuel Observatory.

Instead, a mixture of tax incentives and cash subsidies, plus a favourable approach to EV fleet support, helped boost numbers. Plus, a new electric mobility information platform called eMove Austria was launched in January.

Despite a 4.2% drop in BEV volumes, Czechia enjoyed notable PHEV gains. In total, the country saw 850 units registered, a 32.6% uplift.

ICE drifts into 2026

It is no small surprise that January saw internal-combustion engine (ICE) registrations continue to fall across the EU. Amid legislative changes to CO₂ targets, both new petrol and diesel interest have petered out across all major markets.

Combined petrol and diesel registrations reached 240,539 units, signalling a 26.7% year-on-year volume decline. Coupled with this, the powertrain group captured 30.1% of the EU new-car market, a 9.4pp dive.

This dwindling fuel type group remains a relatively strong market player. In January, ICE registrations exceeded combined BEV and PHEV volumes by just 7,568 units. The plug-in market share trailed petrol and diesel by just 1pp. With the narrowing gap, the coming months could see the EV market overtake ICE, signalling a shift in powertrain dynamics.

In terms of new petrol registrations, 175,989 new vehicles took to EU roads in the opening month of 2026. This marked a 28.2% drop. Market share came out to 22%, down 7.5pp on 12 months prior. Five nations recorded petrol volume increases. Austria saw a 3.3% lift, while Estonia saw an eye-catching 248.8% surge. Yet this amounted to just 286 units.

Diesel declined in 23 of the 27 EU new-car markets. January saw 64,550 new vehicles registered across the bloc. This marked a 22.3% year-on-year fall. Once again, Estonia saw triple-digit increases at 431.4%, as 186 new diesels found their way to customers.

Will Hungary see automotive growth in 2026?

Following three years of economic underperformance and uncertainty, Hungary faces a challenging 2026. Barnabás Kovács, head of valuations for Hungary at Autovista Group, explores the numbers with Autovista24 editor Tom Geggus.

Industrial production and investment in key sectors continue to be strained. High energy prices and taxation have put extra pressure on businesses. Meanwhile, households are struggling with affordability. Higher costs, perceived inflation, and economic uncertainty have led consumers to save rather than spend where possible.

After three consecutive years of weak GDP performance, the country’s economy is expected to grow by to 2.4% in 2026. This could support a modest recovery in consumer demand.

The National Bank of Hungary (NHB) confirmed the average rate of inflation in the country was 4.4% across 2025. This year, the institution expects inflation to rise by 3.2%.

Interest rates were cut to 6.5% in September 2024, and no changes have been made since then. ING believes the NHB could cut rates down to 6.25% on 24 February, with another cut to 6% possible in March.

Regarding financing, the most competitive car loans on offer currently come with approximately 10% interest. Meanwhile, some higher rates are closer to 18%. Dealers long for lower rates of between 3% and 5%, which would encourage a more promising market.

Registration growth continues in Hungary

Thanks to lower results in the early 2020s, the Hungarian new-car market continued to record growth in 2025. Passenger car registrations increased by 6.4% year on year to 129,440 units, as confirmed by ACEA. This was 20.1% higher than in 2023.

Pure internal-combustion engines (ICEs) and mild hybrids (MHEVs) continued to dominate the market. The fuel types accounted for 70.8% of all new-car sales. Meanwhile, full hybrids (HEVs) took a 14.8% share. Suzuki maintained market leadership over these powertrains with locally produced models, followed by Toyota and Skoda.

New EV growth in Hungary

Hungary’s BEV market saw significant growth, with sales up 28.5% year on year and a share of 8.5%. All-electric demand was boosted by various incentives. This included purchase subsidies, as well as company tax, registration tax and ownership tax benefits, according to the European Alternative Fuels Observatory (EAFO).

Tesla was the leading brand in the BEV market, followed by BYD and BMW. The most popular models were Tesla Model Y, Kia EV3 and Tesla Model 3.

The PHEV market showed slower growth of 25.3%, taking a 5.5% market share. These powertrains were heavily driven by corporate buyers, accounting for 74% of PHEV and 80% of BEV registrations.

Last year, the Hungarian new-car market experienced a significant influx of Chinese car brands, led by BYD. The carmaker is about to produce the Dolphin Surf and Atto 2 at its new Szeged plant in Hungary. Other key players expanding their presence include Chery’s Omoda and Jaecoo, Nio, Leapmotor and SAIC-owned MG.

Growth expected in 2026

This year, Hungary’s new-car market is forecast to grow slightly following post-COVID-19 volatility. While new-car sales may see a modest increase, the market faces pressures from high consumer prices and strict emission standards. This is despite Hungary’s currency, the forint, strengthening to its highest level in recent months.

HEVs can be expected to continue dominating the new-car market in 2026. The government’s BEV incentive scheme for business fleets has been extended again. It will now run until 15 April, and with a budget of over 5 billion forints (€13,175,000).

The EAFO expects a new subsidy scheme to be introduced for private buyers this year. However, no date has yet been confirmed. With or without them, it is doubtful that these vehicles could gain a significant market share in Hungary.

Imports increase in Hungary

The number of used cars imported into Hungary nearly matched last year’s new car registration total at 128,155 units. This level was 15.5% higher than in 2024 and 21.3% above 2023.

On average, an imported car is now 12 years old. Meanwhile, the total market saw average age hit 16.3 years in 2025, which has been growing slowly. Nominal prices are continuously crawling upwards because of the increasing demand and limited supply. Even the improving exchange rate cannot offset this phenomenon.

Most buyers are looking for more affordable vehicles, opting primarily for Euro 4 and Euro 5 cars. Among these models, naturally aspirated petrol engines are the most popular propulsion systems. Diesel is also popular for larger vehicles and covering long distances. Tesla has a high ranking as a BEV brand, with the Model 3 considered a reliable choice.

Germany continues to be a primary import market for Hungary, thanks to reliability and a wide selection of cars. Belgium is another major source, which sees well-maintained, regularly serviced cars in good condition.

Elsewhere, Italy brings rust-free bodies, and the Netherlands imports well-maintained cars with detailed, manipulation-free online registration.

The Automotive Update: What does China’s slowing EV market mean for global sales?

What is happening in China’s electric vehicle (EV) market? How much is Uber investing in autonomous vehicle charging hubs? Can Europe build its own EV batteries? Tom Geggus, Autovista24 editor, discusses these points in The Automotive Update podcast.

In this episode, Autovista24 analyses China’s slowing EV market and reveals the best-selling models in the country. Plus, how has Tesla avoided suspension of its dealer and manufacturer licence in the US?

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

China’s slowing EV market

Globally, China accounts for 59.1% of battery-electric vehicle (BEV) sales and 70.3% of plug-in hybrid (PHEV) deliveries. But despite dominating the figures, the country saw its total EV numbers struggle in December. Figures rose by just 0.5%, according to the latest data from EV Volumes.

Despite total plug-in sales increasing between January and December last year, this was not helped by the country’s PHEV market. It experienced a run of monthly declines from July onwards.

One reason for this poor performance was the decline of BYD. The brand accounted for 33.3% of total EV sales in China during 2025 and dominated the PHEV market. Yet its sales were down 9.9% across the year.

However, with new players entering the PHEV market, 2026 will see more brand diversification. This could help boost figures, while new BYD models will also help impress buyers.

BEV sales rose by just 4% in December 2025 following a run of double-digit improvements. China’s carmakers will be hoping this is not the start of a new trend, especially if the PHEV market continues to struggle.

Tesla avoids suspension

Tesla has avoided a 30-day suspension of its dealer and manufacturer license in California. This follows the brand halting its use of the term ‘Autopilot’ in its vehicle marketing in the state.

The Department of Motor Vehicles adopted a decision that the use of the term is ‘misleading and violates state law’. This is linked to Tesla’s use of Autopilot to describe its advanced driver-assistance systems.

Uber invests in autonomous charging

Uber Technologies will invest more than $100 million (€84.9 million) into autonomous vehicle charging hubs, according to Reuters.

The company will deploy DC fast charging stations at its fleet depots and other locations throughout priority cities. This is expected to begin in the Los Angeles Bay Area as well as Dallas, before hitting other hubs.

Uber will also work with charge point operators to establish ‘utilisation guarantee agreements’. This will support the rollout of hundreds of new chargers in cities across the world.

EV charging offer in the Netherlands

Leasing provider, Ayvens, has launched a new EV charging offering. Ayvens Power promises customers in the Netherlands access to over one million charging points across Europe, spanning different operators. Drivers will get real-time availability and pricing details before arrival.

Meanwhile, a fleet portal will provide charging insights, cost visibility and reporting tools. The solution is due to roll out in France, Germany, Italy, Belgium, and the UK later in 2026.

Can Europe build EV batteries?

Yann Vincent, CEO of the Automotive Cells Company  (ACC), has questioned who will make batteries for Europe’s domestic carmakers.

‘One crucial question remains: who will manufacture the batteries for European cars?’ Vincent asked. ‘Asian players, particularly Chinese giants, as is already the case for 99% of them? At the risk of putting the strategic independence of European car manufacturers solely in the hands of BYD, CATL, LG, etc?’.

The CEO also confirmed that the ramp-up of ACC’s gigafactory in Hauts-de-France is taking longer and costing more than expected. This is weakening the company’s financial position. He also stated the goal of building the factory was ‘too close to give up on.’

Which EVs came out on top in China’s slowing market?

China’s plug-in hybrid (PHEV) market struggled in 2025, but could December’s results suggest a slowing battery-electric vehicle (BEV) market? Autovista24 special content editor Phil Curry examines the market and the best-selling models of 2025.

China’s electric vehicle (EV) market ended 2025 with growth. But the BEV and PHEV results in December suggest that 2026 could prove to be a difficult year.

In total, 8,097,866 BEVs were sold across 2025, a rise of 27.6% year on year, according to EV Volumes’ latest data. Meanwhile, 5,072,986 PHEVs made their way to customers in China, an increase of 4.2%.

A slowdown in the plug-in hybrid market across 2025 altered the powertrain dynamics in the country. During December alone, PHEV sales fell by 4.2%, with 558,513 units leaving dealerships. This was the sixth monthly decline in a row, according to the latest EV Volumes figures.

Yet the BEV market also slowed in December. With 788,471 units delivered, volumes increased by 4% year on year. This was the lowest growth since June 2024. This meant the combined EV market recorded 1,346,984 deliveries, a rise of just 0.5% compared to the same month in 2024.

So, BEVs accounted for 61.5% of all EV sales last year, an increase of 4.9 percentage points (pp). This meant PHEVs took 38.5% of the market, down from 43.4% a year prior. With PHEV sales in decline, the country’s EV market will be hoping December is not a precursor for what is to come.

China’s best-selling PHEV: the BYD Qin Plus

BYD dominated China’s slowing PHEV market in 2025. The carmaker placed seven models in the country’s top 10, however, only one of these achieved year-on-year growth.

The best-selling PHEV in China last year was the BYD Qin Plus. Having placed second in 2024, it jumped to the top of the chart with 281,413 sales in 2025. However, this was down by 17.6% compared to its volumes in the previous year. The result was good enough for a 5.5% market share, a drop of 1.5pp.

In December, the BYD Qin Plus topped the PHEV chart with 40,000 sales in the month. This was an increase of 31.1% compared to December 2024. The result was good enough for the model to achieve a 7.2% market share, up by 2pp.

In second place at the end of 2025 was the BYD Seal 6, which achieved 188,525 sales across 12 months. This was a 2.6% decline year on year, while its market share of 3.7% was down 0.3pp.

December saw the model suffer its worst volume result since it first recorded sales in May 2024. Just 6,111 units were sold, a 77.1% decline year on year. This left it in 27th position, while the Qin Plus increased its lead in the annual chart.

Changing times in China

Third in 2025 went to the BYD Song Pro as it recorded 180,661 sales. This was a drop of 28.3% year on year. The model took fourth in December, as 18,373 units made it to Chinese roads, a decline of 27.6%.

The Song Pro was helped in the annual chart by a terrible month for the fourth-placed BYD Song Plus. It ended December 44th in the monthly chart, with just 4,000 sales, an 88.3% volume decrease.

This was in stark contrast to its performance in Europe. Known in the region as the Seal U, it topped both December’s and the annual best-selling PHEV chart.

In China, the Song Plus achieved 166,764 deliveries between January and December. This was a decline of 51.4%, the worst percentage drop recorded in the PHEV top 10. Having won the title in 2024, its market share of 3.3% was down by 3.7pp.

The first non-BYD model was the Li Auto L6 in fifth. With 166,174 deliveries, it ended the year just 590 units behind the BYD Song Plus. However, its volumes were down by 13.6%. This gave the model a similar 3.3% market share. The L6 was helped by a ninth-place finish in December’s table, although the 12,334-unit tally was down by 55.6%.

Making their mark

The BYD Qin L recorded 162,817 sales across 2025. It was another BYD model to see sales drop, down by 29.1% year on year. In December, the model finished 13th with 10,000 sales.

The newest model in the 2025 top 10 was the Aito M8 in seventh. With sales first recorded in April 2025, it achieved a total of 148,934 deliveries, to grab a 2.9% market share. It was helped by a sixth-place finish in December, with 17,123 sales.

The BYD Song L took eighth. It was the only model from the brand in the top 10 to record growth. Furthermore, it was only one of two PHEVs in this list to see its sales increase at all. With 141,686 deliveries, it achieved a 16.5% improvement year on year. December saw the model finish eighth as well, with 13,000 deliveries, although this was down by 42.1%.

The BYD Destroyer 05 jumped to ninth, with 127,509 sales, a 40.5% decline. Having started the year strong, sales slipped from March onwards. Although the 123,137-unit total for 2025 was 496.7% up compared to 2024.

The Galaxy Starship 7 was not helped by a 32nd-place finish in December. Just 5,190 units were delivered, the model’s worst volume total since its launch. Having started the year strongly, declining fortunes across 2025 meant it finished 10th in the annual table.

New models fight for places

Many of the 2025 top 10 secured their place in the chart thanks to strong performances early in the year. But five different models made the table in December alone, suggesting 2026 could see more competition than ever.

Finishing second was the Fang Cheng Bao Tai 7, with 34,086 deliveries. It was followed in third by the Aito M7, with 26,468 units delivered, a 97.3% year-on-year increase. Fifth went to the BYD Sea Lion 6, with 17,380 units sold. The BYD Seal 5 was seventh with 16,484 deliveries in just its third month on the market.

Rounding out December’s table was the WEY Gaoshan, with 10,846 sales. This was a record result for the model, which has been on the Chinese market since September 2023. It was also the second time it achieved a five-digit volume in its history, following another impressive performance in November.

China’s best-selling BEV: The Geely Geome Xingyuan

China’s best-selling BEV in 2025 was the Geely Geome Xingyuan. With 471,410 deliveries, it powered to the top spot in its first full year on sale. It comfortably beat 2024’s BEV leader, the Tesla Model Y, taking back the market for domestic brands. It achieved a 5.8% market share across 2025.

In December, the Geely Geome Xingyuan placed second with 41,619 deliveries, a rise of 152.4% year on year. This was good enough for a 5.3% market share, up 3.1pp.

Taking second in the annual table was the Wuling Mini, with 431,617 sales. This was an increase of 65.3% compared to 2024, while its 5.3% market share was up 1.2pp.

The model had a rollercoaster 2025, with strong results in the last months of the year. It topped monthly sales tables in September, October and November, helping it take second in 2025. This run ended in December, as the Mini placed sixth with 19,076 deliveries, down 49.5% year on year.

Rounding out the top three last year was the Tesla Model Y. After taking the best-selling BEV title in 2024, it slipped down the rankings with 425,337 sales, a drop of 11.4%. This meant its 5.3% market share was down by 2.3pp compared to 2024.

Yet the US BEV did claw back some of its gap to the second-placed Wuling Mini in December. It topped the monthly sales, with 65,874 units, a rise of 6.5%, in line with its usual end-of-quarter delivery peak. However, results earlier in the year left it battling the domestic brands across 2025.

BYD Seagull fails to fly

The BYD Seagull, which took second in 2024, fell to fourth place last year with 310,956 sales. This was a drop of 29.7%. It was responsible for 3.8% of all BEV deliveries in China last year, down from the 7% achieved in 2024. December was a difficult month for the Seagull, with 18,307 units taking to Chinese roads, a 62.5% decline.

The Xiaomi SU7 was the fifth-best-selling BEV in China last year, with 258,065 sales. This was an 85% increase compared to 2024, with a 1pp jump in market share to 3.2%. Its position was not helped by a 16th-place finish in December’s table, with 11,024 deliveries, its worst volume of the year.

In sixth was the BYD Yuan Up, with 217,814 deliveries between January and December. This was an increase of 61.5% compared to 12 months prior, bucking the trend of BYD declines. It achieved a 2.7% hold of China’s BEV total, a rise of 0.6pp. December saw the model finish in seventh, with 18,766 deliveries, a 1.2% rise.

The Tesla Model 3 ended 2025 in seventh with 200,361 units making their way to customers. This was an increase of 13.3% compared to 2024, although its market share fell 0.3pp to 2.5%. The US BEV was helped by a strong December, where it placed fourth with 27,969 sales. This was a 32.9% improvement on the year prior.

Strong positions despite poor results

The Xpeng M03 took eighth in 2025 with 177,150 units. This was a 264.7% rise against 2024’s figures. Its 2.2% market share was up from 0.8% the year before. The model had a steady year in 2025, although it placed 12th in December with 14,183 sales.

The Geely Panda Mini was the ninth-best-selling model of 2025, with 162,108 deliveries, an improvement of 23.2%. However, with increased competition, the model’s market share fell 0.1pp to 2%. This was despite placing just 54th in December’s sales chart, with 4,373 units, its lowest volume recorded in a month since January 2023.

However, this was not enough for the BYD Dolphin to take advantage. The model jumped into the annual top 10 with 160,745 sales, up by just 0.1%.

Ones to watch in 2026

Four models made December’s top 10 best-selling BEVs list, while not entering the yearly table. Leading this group was the Xiaomi YU7 in third, with 38,927 sales. The model has proven popular since its launch in June 2025.

The Nio ES8 achieved a record result, despite deliveries starting around March 2018. December saw the model record 20,354 sales, a 1,933.4% increase year on year. It was only the second time the ES8 had recorded five-figure deliveries after November’s tally.

Having started deliveries in August 2025, the ArcFox T1 made its top 10 debut in December, with 17,170 sales. This was good enough for ninth. Meanwhile, the Li Auto I6 took 10th with 16,080 deliveries in its fourth month on the market.

What was Europe’s best-selling new EV in 2025?

European deliveries of battery-electric vehicles (BEVs) and plug-in hybrids (PHEVs) reached new highs in 2025. For both powertrains, however, the best-selling model did not hail from a domestic carmaker. Autovista24 journalist Tom Hooker reveals the two EV champions.

Europe’s historic EV performance in 2025 was a joint effort between BEVs and PHEVs. Both technologies contributed to the continent’s record-breaking plug-in growth, with double-digit improvements of around 30% year on year.

BEVs enjoyed a 29.9% sales increase to 2,598,165 units, according to EV Volumes’ latest data. This was the powertrain’s biggest full-year percentage growth since 2021.

PHEVs saw a smaller volume of 1,283,160 units. However, this represented a steeper rise of 34.2% compared to 2024, the technology’s best year-on-year improvement in four years. The result marks a significant comeback for PHEVs, which suffered full-year declines in 2022, 2023 and 2024.

PHEV’s notable volume growth translated to a bigger slice of the EV market. Plug-in hybrids made up 33.1% of all new EV deliveries in Europe during 2025. This was an increase of 0.8 percentage points (pp) year on year, and 0.2pp ahead of its 2023 share.

While BEVs remained dominant, the powertrain’s share fell from 67.7% in 2024 to 66.9% in 2025.

BEV’s remarkable growth

All-electric cars witnessed a remarkable increase in deliveries during December, which gave the EV figures a final boost. Volumes surged by 52.3% year on year to 311,801 units.

This was the biggest percentage growth recorded since August 2023. The result also completed a 12-month run of consecutive double-digit improvements.

PHEV’s December was also impressive, with a total of 127,251 sales equating to a 40.1% increase year on year. This result displayed consistency, the determining factor in the technology outpacing new BEV growth in 2025.

PHEVs started the year poorly, with two declines in January and February. Since March, however, the powertrain recorded 10 double-digit gains, six of which surpassed the 40% mark. Meanwhile, BEVs only managed to clear this threshold in December.

New EV sales by country

Amid relatively balanced new BEV and PHEV growth, some countries saw their EV market shares surge, while others stalled. Within Europe’s new all-electric car market, Germany recorded the highest number of sales. 20.8% of BEVs sold in Europe last year were delivered in Germany, up 1.9pp year on year.

The UK, which led Europe’s BEV market in 2024, fell to second despite a double-digit improvement. It accounted for 18.2% of all BEV sales in Europe, down 0.9 pp.

Third was France, which saw a steeper share decline of 1.8pp to 13%. Norway finished fourth, enjoying the biggest year-on-year volume increase of any country in the top five. Sales soared by 50.7%, as its share rose by 0.9pp to 6.6%.

The Netherlands came fifth, with its market hold decreasing by 0.5pp to 6.1%, even with deliveries improving by 20.6%.

In the PHEV market, Germany also topped the standings, again helped by strong sales growth. Its share surged by 4.2pp to 24.2%. The UK followed with a 17.6% hold, stable from 2024.

After posting the sixth-highest new PHEV volumes in 2024, Spain jumped to third in the table, thanks to a 118.3% rise in sales. Consequently, its market share went from 6.1% to 10%.

France faced falling PHEV deliveries in fourth. This caused its share to slump, dropping from 15.2% in 2024 to 8.6% in 2025. Italy was fifth with a 7.6% market share, up 2.1pp year on year. The country witnessed an 85.7% uptick in PHEV sales during 2025.

Europe’s best-selling new EV revealed

While EV adoption speeds varied across European countries last year, one model emerged as a clear champion.

After taking the title in 2022, 2023 and 2024, the Tesla Model Y was victorious in 2025. With 150,605 sales, the crossover was not only the best-selling BEV, but the best-selling EV overall. It captured 5.8% of the all-electric car market, and it sat 56,518 units ahead of its closest competitor.

Following its usual quarterly reporting pattern, the Model Y also dominated the BEV standings in December. This was thanks to 23,732 sales. However, despite its lead, its volume represented a 17.4% decline year on year.

This forms part of a waning trend for the Model Y in Europe. The crossover’s full-year sales total marked a drop of nearly 60,000 units compared to 2024. It also represented a loss of over 100,000 units from 2023.

Skoda’s new SUV secures second

Second place was claimed by the Skoda Elroq, which posted 94,087 units between January and December 2025. This was an impressive feat considering the compact SUV began series production in January 2025.

Sales showed no signs of slowing in December, with a best-ever monthly total of 12,645 units. This was enough to put it in second in the monthly BEV table.

The combined sales of the Renault 5 and Alpine A290 took third in the full-year standings, with 90,770 units. Like the Skoda Elroq, European deliveries began in 2024, building into a record result in December 2025. The hatchbacks saw 11,903 deliveries during the month, up 86.4% year on year, securing third.

The Tesla Model 3 finished fourth in 2025, posting 86,612 sales. Unusually, the sedan ended the year with a delivery drop compared to November. This contradicts the BEV’s regular trend of recording higher sales at the end of the quarter. Yet, its 11,227-unit total was still enough for fourth in December, despite representing a 26.9% fall year on year.

Last-minute position changes

Fifth went to the Volkswagen (VW) ID.3, as it posted 78,899 deliveries in its fifth full year on the market. December was its highest volume month, with 8,451 new models leaving dealerships, its best figure since June 2024. This also equated to a 76.1% improvement year on year, putting it sixth in the monthly standings.

Just 576 units behind was the Skoda Enyaq, with 78,323 sales in 2025. Of this total, 7,437 units came in December alone, a 2.9% increase on 12 months prior and its highest monthly volume since March 2025. However, with other models seeing steeper growth in December, this was only enough for ninth place.

A further 335 units back was the VW ID.4, with 77,988 deliveries. Like many other BEVs, December marked a high point for the model in 2025. Its 8,565-unit total was its best since July 2023 and equated to a 57% rise on December 2024. It placed fifth in the monthly table, just ahead of its sibling, the ID.3.

Record results

Another all-electric offering from VW’s ID range secured eighth with 76,528 sales: the ID.7. It achieved a new monthly delivery record in December, with 8,359 units, up 49.2% year on year.

Overall, five VW Group models featured in Europe’s BEV best-sellers table in 2025. Additionally, Audi’s Q4 e-tron and Q6 e-tron models placed 11th and 12th.

BMW’s iX1 took ninth, with 67,618 deliveries. This was helped by a strong December, where the SUV placed seventh. A total of 8,423 new models left dealerships, its best-ever monthly figure and up 55.1% year on year.

The Kia EV3 rounded out the full-year standings in 10th, as the crossover SUV posted 66,350 sales in 2025. The model failed to make December’s table.

Instead, placing 10th in December was the Audi Q4 e-tron, with 7,180 sales. This was an increase of 19.6% year on year and meant five models from VW Group made the monthly top 10.

BYD’s new PHEV champion

Europe’s PHEV market crowned a new champion in 2025: the BYD Seal U. The SUV led the way with 66,611 sales from January to December, giving it a 5.2% share. It marked BYD’s maiden win in Europe, as the PHEV fended off strong competition from domestic models.

The model also topped December’s monthly standings, with 8,606 deliveries translating to a year-on-year increase of 213.9%.

Its closest rival, the VW Tiguan, was 6,109 units behind across the year, with 60,502 new models leaving dealerships in 2025. The model recorded 4,827 sales in December, an improvement of 28.5%.

Third went to the 2024 victor, the Volvo XC60, which recorded 58,979 deliveries. The PHEVs’ sales pace slowed in December, as it suffered a 6.5% decline to 5,981 units.

New sales trail off

Some distance behind in the full-year standings was the Ford Kuga in fourth, with 44,500 sales. This was still more than it achieved in 2024 when it placed second, highlighting the increased competition in Europe’s PHEV market.

Volumes trailed off in the final quarter of the year, culminating in a weak December. The Kuga delivered 2,722 units in the month, its lowest figure since May 2024.

The Mercedes-Benz GLC enjoyed a much stronger end to 2025, finishing in fifth with 39,373 units. It finished in the same place in December’s standings, with 4,576 deliveries. This was the fourth consecutive month where sales passed the 4,000-unit threshold.

Just one unit behind in the yearly table was the MG eHS. This was a lucky escape for the GLC, as the MG eHS stormed to second in December’s table with surging sales. Its 6,000-unit total was up 223.6% compared to 12 months prior. The result also marked the PHEV’s largest-ever monthly volume.

These moves came at the expense of the BMW X1, which took seventh in the full-year table. The model posted 39,226 units in the 12-month period. As its closest rivals placed highly in December, the SUV could only manage eighth. The X1 suffered a 19.5% year-on-year drop in the month to 3,083 units.

Jaecoo’s accelerating progress

The Toyota C-HR claimed eighth in 2025 with 35,356 units. In December, the PHEV enjoyed a 114.1% sales jump to 3,194 units. Taking ninth was the Jaecoo J7, thanks to 29,587 deliveries in 2025.

Strong monthly results towards the end of 2025 helped to accelerate its progress, including a sixth-place finish in December. Rounding out the yearly table was the Cupra Formentor, which took 10th. The PHEV posted 29,327 deliveries from January to December.

Key new EV market trends

This meant that the top 10 best-selling PHEVs in Europe last year were all SUVs. This contrasted with the BEV chart, which included other segments such as hatchbacks.

However, compared to the BEV best-sellers list, the PHEV top table featured a higher variety of brands. For the latter, 10 different carmakers filled the top 10 spots, while six marques placed in the BEV standings.

These trends could change by the end of this year, as new EVs continue to enter the market. Competition is set to increase as volumes grow further. This will make it harder for individual models and brands to solely dominate the BEV or PHEV standings.

The world’s best-selling new BEVs and PHEVs of 2025

Which new battery-electric vehicle (BEV) and plug-in hybrid (PHEV) models recorded the greatest sales volumes in 2025? How did regional dynamics dictate the best-seller tables? Autovista24 editor Tom Geggus unpacks the data.

Following two years of global new PHEV sales growth outpacing all-electric cars, 2025 saw BEVs surge ahead. With 13,697,372 units taking to roads around the world, the powertrain recorded year-on-year delivery growth of 26.7%. This is according to the latest data from EV Volumes.

Meanwhile, PHEV deliveries slowed to an increase of 11.1%, down significantly from the 55.2% acceleration in 2024. Last year saw 7,217,499 plug-in hybrids making their way to customers.

Much of this came down to China’s slowing PHEV market. The country was responsible for 70.3% of the powertrain’s sales, meaning declining results impacted the global market. In contrast, Spain saw triple-digit sales growth for the technology, but it made up a far smaller global share of just 1.8%.

Between the two, the US made up 4.6% of the world’s PHEV market, with sales up 4.8%. Then came Germany with 62.5% growth and a 4.3% share. The UK had the fourth largest PHEV market, accounting for 3.1% of sales globally. The country saw deliveries increase by 34.5%.  

The slowdown was highlighted by an increase in December’s global volumes of just 0.9%, as 758,073 sales were recorded.

BEVs bounce ahead

In contrast, China saw its BEV market pick up speed last year, with growth reaching 27.6%. Despite a smaller portion of global sales compared to PHEVs, it still dominated global deliveries at 59.1%.

This was still far ahead of the next biggest market, the US, which saw sales fall by 3.9%. In total, 8.7% of all-electric car sales took place in the country.

Given China’s slowing EV market and emissions regulation changes in the US, the dynamic of the global EV sector could shift in 2026 and beyond.

Germany followed with 4% of the global BEV market as sales increased by 43%. The UK was 0.5 percentage points (pp) behind with a 3.5% share as sales increased by 24.2%. France saw all-electric sales increase by 13.6% as it made up 2.5% of all-electric deliveries.

In December, BEVs managed a global increase of 12.4%, as 1,376,827 units made their way to customers.

Best-selling BEV: Tesla Model Y

The Tesla Model Y was the world’s best-selling BEV of 2025. With new variants and designs launched, it was the only electric vehicle (EV) to exceed the one-million delivery mark. In total, 1,085,521 units made their way to customers as it retained the market lead it has held since 2022.

However, within an increasingly competitive space, the model saw its sales fall by 7.5% year on year. This meant its market share shrank from 10.9% in 2024 to 7.9% last year.

Most of the Model Y’s sales in 2025 took place in China. Given the country’s greater EV market development, this should come as little surprise. However, the US was only 9.2pp behind, with 30% of the model’s overall sales taking place there.

Behind these two formidable markets came South Korea, Turkey and Canada, representing 4.6%, 2.9% and 2.6% of the BEV’s sales.

The Tesla Model Y was helped by a strong December. 129,650 units were sold in the month, boosted by its traditional quarterly reporting period. This was, however, 4.3% down year on year.

Tesla takes second as China dominates

The second-best-selling BEV last year had four things in common with the market leader. It was another Tesla, it saw updates in 2025, it retained its position from 2022 onwards, and its deliveries fell.

The Tesla Model 3 saw sales decline by 5.5% to 499,685 units in 2025. This meant its market share dropped by 1.3pp to 3.6%.

The Model 3 saw 40.1% of its sales take place in China. But once again, the US was only 9.1pp behind at 31%. The all-electric sedan saw positive uptake in the UK, with 3.1% of its deliveries occurring in the market.

In December, the Model 3 placed second thanks to Tesla’s quarterly reporting. It achieved 55,198 sales, a 5.6% dip year on year.

The Geely Geome Xingyuan, also known as the EX2 in some locations, ended the year in third. A relative newcomer in the BEV market, it first recorded sales in September 2024. It saw a marked increase of 800% to 473,948 units as its market share jumped by 3pp to 3.5%.

While the Tesla Model Y and Model 3 each recorded sales across more than 75 markets, the Xingyuan contrasted heavily. It only posted deliveries in four markets, China, Brazil, Mauritius and Colombia.

However, the latter three markets noted relatively minimal sales compared to China. It saw 99.5% if its sales take place domestically. The model is scheduled to enter major European markets in 2026.

The Geome Xingyuan saw 43,185 sales in December alone, as it increased volumes by 161.9% year on year. This capped an impressive first full year on sale for the Chinese BEV.

Eight Chinese BEVs in top 10

The Xingyuan began an avalanche of BEVs from Chinese carmakers. Eight of the top 10 in the best-sellers list came from the country.

The Wuling Mini was fourth as it saw sales climb by 65.3% to 431,779 units. This gave it a market share of 3.2%, up from 2.4% in 2024. The BYD Seagull, also known as the Dolphin Surf in some markets, took fifth. However, its sales fell by 13.3% to 409,550 units. This took its share down by 1.4pp to 3%.

The Xiaomi SU7 came sixth as its market share increased by 0.6pp to 1.9%. This was thanks to year-on-year sales growth of 85.3%, reaching 258,824 units.

With a similar 84.2% rate of growth, the BYD Yuan Up, also known as the Atto 2, recorded 252,441 deliveries. Its share climbed by 0.5pp to 1.8%.

The BYD Dolphin saw a 4.6% rise in sales to 227,352 units. Even though this was a better volume than in 2024, greater competition meant the BEV saw its market share shrink. It accounted for 1.7% of all BEV deliveries, down from 2%.

The BYD Yuan Plus, also known as the Atto 3, saw sales decline by 33.7% to 225,133 units. This resulted in a 1.5pp decline in share to 1.6%. In 10th, the Xpeng M03 enjoyed a 264.7% sales increase to 177,150 units. Its grip on the market increased to 1.3% from 0.4% in 2024.

Best-selling PHEV: BYD Song Plus

While BYD was able to capture four of the top-10 best-selling BEV positions, it excelled in the PHEV market. In total, it claimed seven of the best-selling slots in the year, including first place.

The best-selling PHEV in 2025 was the BYD Song Plus, known in some markets as the Seal U. This extended its winning streak, after it claimed the title in 2024. Last year it recorded 328,094 sales, taking 4.5% of the market.

However, like the majority of BYD’s PHEVs in the top 10, it saw its deliveries fall compared with 2024. Its volumes declined by 9.8%, while its share was eroded by 1.1pp to 4.5%.

At 50.8%, the Song Plus saw over half of its sales take place in China. Single-digit shares were recorded in 49 other markets. This included Turkey, Mexico, the UK and Brazil, accounting for 7.8%, 7.5%, 6.3% and 5.5% of its sales respectively.

The end-of-year success came despite a fall in monthly performance. It ended December in fifth, with 22,226 units delivered, a 49.1% year-on-year decline.

Qin Plus takes second

In comparison, the Qin Plus was the second-most popular PHEV of 2025, but only recorded sales in 10 countries. China accounted for the vast majority of its deliveries at 96.2%. Globally, its volumes declined by 15.9% to 292,572 units. This meant it took a 4.1% market share, down 1.3pp.

The model still topped the PHEV chart in December, thanks to 40,818 deliveries, a 30.1% increase compared to the same month in 2024.

The BYD Song Pro took a marginally larger fall. Its share stumbled by 1.4pp to 3.2% as its sales decreased by 22% to 231,143 units. While China accounted for 78.2% of its sales, Brazil managed 10.5%, followed by Mexico at 4%. Highlighting the Song Pro’s struggles, it ended December in fourth, with its 24,070 sales down by 26.4%.

The BYD Seal 6 took fourth in the global PHEV top 10 at the end of 2025. Its sales increase by 3.1% to 206,136 units. This made it one of two BYD models in the top 10 to achieve this positivity. However, this was not enough to stop its market share from slipping. It accounted for 2.9% of all PHEV sales last year, down from 3.1%.

The first non-BYD model in the top 10 was the Li Auto L6 in fifth. It saw sales drop by 13.2% to 166,965, taking a 2.3% share, down 0.7pp. The BYD Qin L took sixth with a 2.3% grasp on the market. This reflected a drop of 1.2pp as sales slowed by 29.1% to 162,817 units.

The BYD Destroyer 05 took seventh in 2025 even as its deliveries dropped by 32.7% to 150,677 units. Its share also took a downturn, hitting 2.1% from 3.4% in 2024.

Share increases possible                                                      

The top seven highest-performing PHEVs in the world all saw their grip on the market weaken in 2025. However, this was not the case throughout the top 10.

After first recording sales in April 2025, the Aito M8 claimed a share of 2.1% with 148,934 deliveries. The BYD Song L came ninth, as its share increased to 2% from 1.9% in 2024. The model’s volumes increased by 16.8% to 142,301 units, the only other BYD to achieve this in 2025’s top 10.

The Galaxy Starship 7, also known as the Starray, first recorded sales in November 2024. Across 2025, its deliveries soared by 512.8% to 126,461 units. This meant its market share climbed by 1.5pp to 1.8%.

While the global PHEV market slowed in December, two models saw impressive performances in the last month of the year. The Fang Cheng Bao Tai 7 ended the month second in the PHEV table. It saw 34,086 sales, accounting for 4.5% of the global total. Meanwhile, the Aito M7 placed third with 26,468 deliveries. This was a 97.3% year-on-year improvement, the best result in the top 10. This gave it a 3.5% market share, up from 1.8% recorded a year prior.

What was the best-selling EV brand in China in 2025?

New electric vehicle (EV) sales in China continued to grow in 2025. Did a plug-in hybrid (PHEV) slowdown affect the country’s biggest brands? Autovista24 special content editor Phil Curry examines the latest figures.

China’s EV market endured a challenging end to 2025, but finished the year with further growth. According to EV Volumes’ data, plug-in sales ended 2025 up by 17.5% year on year.

In total, 13,170,852 new battery-electric vehicles (BEVs) and PHEVs were delivered, an increase of 1,960,139 units.

However, this was down from the 34.3% growth recorded across the first half of 2025. Since then, China’s PHEV market has slowed, recording its first declines since February 2024. This impacted the share balance between the two electric powertrains.

BEVs ended 2025 with a 61.5% hold of the Chinese EV market. This was an improvement of 4.9 percentage points (pp) compared to 2024. Meanwhile, PHEVs fell to a 38.5% share.

The PHEV slowdown impacted EV results in the final quarter of the year. While BEV volumes increased by 4% between October and December, PHEV sales declined by 4.2%. This left the overall EV market with a 3.6% increase in the period, as 4,020,708 units made their way to customers.

BYD leads despite decline

BYD sold the largest volume of EVs in China during 2025. The carmaker achieved 3,170,489 sales across the 12-month period, with the market representing 79.9% of its total global deliveries. This equated to a dominant 24.1% market share in its domestic market.

Despite its comfortable lead, BYD had a troubled 2025. Overall sales were down 9.9% compared to the previous year, as the brand increased its focus on global exports. The carmaker’s market share fell by 7.3pp compared to 2024.

Yet, BYD’s BEV deliveries grew by 2.8%. This was led by the Seagull with 310,956 deliveries. The model made up 9.8% of BYD’s EV sales and was the carmaker’s most popular. PHEVs made up 52.8% of BYD’s sales in China. However, its deliveries of the technology declined 18.9% year on year, despite the marque’s popularity in the market.

The BYD Qin Plus was BYD’s second-best-selling model of the year, and its leading PHEV. It achieved 8.9% of the brand’s sales between January and December. Following this was the Yuan Up BEV, with 6.9% of BYD’s total. The Seal 6 and Song Pro, both PHEVs, accounted for 5.9% and 5.7% of deliveries, respectively.

BYD may be hoping for a stronger 2026. Despite its dominant position in the PHEV market, other carmakers saw impressive figures across the year. The carmaker would need a catastrophic period of results to see its 15.2pp market share lead wiped out. Yet competitors are clearly maintaining momentum at present.

Geely impresses in China

One of the most improved carmakers in China during 2025 was Geely. The marque took second place in China’s EV market, thanks to the performance of its Geely and Galaxy models.

In total, 1,177,257 plug-in models made their way to customers across the year, an improvement of 156.8% compared to 2024. The carmaker was the only other brand to sell over one million models. Geely’s market share more than doubled last year, up 4.8pp to reach 8.9%.

Geely owes this record-breaking performance to its prowess in the BEV market. All-electric sales accounted for 66.9% of the carmaker’s total. The Geome Xingyuan was comfortably the brand’s best-selling model, making up 40% of Geely’s total sales. With deliveries only starting in September 2024, this was quite an achievement.

The brand’s second and third best-selling models were also BEVs. The Geely Panda Mini took 13.8% of the carmaker’s overall total, while the Galaxy E5 held 10.6%.

These models helped Geely to increase its BEV volume by 156.8% in the year, directly matching its overall EV improvement. Meanwhile, the marque’s PHEV sales grew by 156.8% compared to 2024.

In the last quarter of the year, Geely saw a 63.5% increase in sales, as 340,955 units made it to China’s roads. This was enough for an 8.5% market share, up 3.1pp.

Wuling bets on BEVs

The third biggest EV seller in China last year was Wuling, incorporating Baojung models. With 897,582 sales, it saw volumes rise by 33.3% year on year. This was good enough for a 6.8% share of China’s EV total, a rise of 0.8pp.

Wuling was driven by BEV sales in 2025. The technology represented 93.7% of the manufacturer’s deliveries, while its top seven best-sellers were all-electric models. The brand’s dominant leader was the Wuling Mini, which contributed to 48.1% of sales.

The BEV’s 431,617-unit total was almost three times higher than the Wuling Bingo in second, with 147,841 units. This was enough for a 16.5% hold of the carmaker’s total.

Wuling’s BEV sales increased 40.7% year-on-year. This came at the expense of its PHEV market, however, which experienced a 25.1% decline. The carmaker’s best-selling PHEV was the Xingguang S, with 18,518 sales, placing eighth in the brand’s best-sellers list.

Tesla struggles in China

After a third-place finish in 2024, Tesla slipped to fourth in China’s EV top-sellers list, ending the year with 626,498 sales. This was a drop of 4.9% year on year.

The US carmaker recorded a 4.8% share of the market, down by 1.1pp compared to 2024. While Tesla suffered declines in both halves of 2025, its second half of the year was stronger. The marque’s 6.5% drop from January to June reduced to a 3.7% dip from July to December.

Leapmotor placed fifth, with 530,891 sales. This was an 85.7% increase compared to 2024, and gave the brand a 4% market share, up 1.5pp. The Leapmotor C10 led its sales, with 108,376 units.

Aito took sixth, with 453,037 deliveries. This was enough for a 17.1% year-on-year increase, while the marque was responsible for 3.4% of China’s EV sales. However, with increased competition, this was a drop of 0.1pp compared to 2024. Aito’s M8 model led its EV sales, achieving 148,934 deliveries.

Impressive results

Seventh went to Xiaomi, which saw the biggest year-on-year volume increase out of the top 10 EV sellers. With 411,323 sales, the carmaker achieved an improvement of 194.9% year on year. This was good enough for a 3.1% share of the EV total, up from 1.2%.

The result was even more impressive considering Xiaomi only fielded two models, both in the BEV market. The SU7 led the way with 258,065 sales, while the YU7 achieved 153,258 deliveries.

Li Auto slipped to eighth in 2025 after placing fourth in 2024. With 408,059 sales, volumes dropped 18.5%. This meant its market share fell by 1.4pp, to 3.1%. Ninth went to Xpeng, with sales jumping 122.5% to 385,529 units. It held 2.9% of the EV total, up 1.4pp.

Chery rounded out the top 10, with 313,763 deliveries. This was a 10.3% improvement year on year, and gave the marque a 2.4% share. However, with increased competition, this was 0.1pp down compared to 2024.

The Automotive Update: Which brands sold the most EV models in 2025?

How did global and European electric vehicle (EV) markets perform in 2025? Which brands sold the most EVs? How has one model navigated EU countervailing duties? Tom Geggus, Autovista24 editor, answers these questions in The Automotive Update podcast.

In this episode, Autovista24 analyses the global and European EV markets and examines the best-selling brands by plug-in volumes. Plus, a look at the latest twist in automotive trade talks between Europe and China.

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

The world’s best-selling EV brand

Global sales of new EVs, including battery-electric vehicles (BEVs) and plug-in hybrids (PHEVs), rose 20.9% to 20,914,871 units in 2025. However, this growth rate reflects a slowing trend. The global EV market has seen its pace of expansion slow consistently since 2021. During this period, BEVs consistently accounted for the majority of EV sales.

Conversely, Europe saw its steepest full-year growth since 2021, with a 31.3% improvement to 3,881,325 sales. This followed a decline in 2024. Last year’s increase was helped by a strong fourth quarter. In this period, the continent recorded 1,150,986 units, the first time more than one million sales occurred in a quarter.

BYD sold the greatest number of EVs in 2025, as its volumes increased by 3.1% to 3,967,070 units. However, due to increased competition, its market share fell by 3.2 percentage points (pp) year on year to 19%. Tesla followed in second, with 1,635,753 deliveries. However, this equated to a 8.5% drop in volumes.

In Europe, Volkswagen (VW) took the best-sellers title, with sales up 86.8% to 426,325 units. Consequently, its market share rose by 3.3pp to 11%. This marked the first time the marque led Europe’s EV market since its victory in 2021.

EV exempt from EU tariffs

The European Commission confirmed a minimum import price (MIP) for a BEV made in China. As of 11 February, VW can export the Cupra Tavascan into the EU at or above a proposed MIP.

The agreement will exempt the SUV from countervailing duties of 20.7%. Alongside the MIP, the carmaker will also limit its import volumes and invest in BEV-related projects in the EU.

‘SEAT and Cupra welcome the decision of the European Commission to accept SEAT and Cupra’s undertaking offer exempting the Cupra Tavascan from countervailing duties,’ the carmaker said in a statement sent to Autovista24. The statement went on to highlight that the Tavascan is a key model for the brand and its electrification journey.

The SUV is designed and developed in Europe and produced in China by a VW Group majority-owned subsidiary. The carmaker also said that the tariffs have had a significant impact on the results and performance of SEAT and Cupra in 2025. However, the carmaker ensured that this did not affect the price of the Tavascan.

This development could pave the way for more brands to reach similar agreements in the future. Meanwhile, China’s commerce ministry is now allowing carmakers from the country to negotiate independently with the EU, according to Reuters.

Which brand sold the most EVs in 2025?

One carmaker continued to lead the global electric vehicle (EV) market in 2025. However, as competition heated up, its lead was eroded. Autovista24 editor Tom Geggus examines the plug-in market and its sellers with data from EV Volumes.

The global EV market, consisting of battery-electric vehicles (BEVs) and plug-in hybrids (PHEVs), continued to grow in 2025. In total, 20,914,871 new plug-in units hit roads across the world. This equated to a year-on-year increase of 20.9%.

While positive at first glance, this growth rate reflects a slowing market trend. Since recording triple-digit growth in 2021, the new EV market has seen its pace of expansion slow consistently.

However, one thing which has not been consistent is which powertrain has driven this trend. In 2020, 2023 and 2024, PHEV sales, including extended-range electric vehicles (EREVs), enjoyed higher year-on-year growth than BEVs.

This was more pronounced in 2020 and 2024, with at least 40 percentage points (pp) separating PHEV and BEV improvements. However, this was not true in 2021, 2022 and 2025 when all-electric car sales grew faster, but the disparity was smaller.

Yet, one thing did remain consistent across the global EV market, and that was the dominance of BEVs. Since 2020, all-electric cars made up at least 62.5% of all EV sales globally, as they recorded larger volumes. But which brand led the global plug-in market last year?

BYD leads EV brand table

In 2025, BYD led the global EV market with 3,967,070 plug-in sales, recording growth of 3.1%. This equated to a market share of 19%, far ahead of the Chinese brand’s next closest competitor. However, with increased competition, BYD saw its share of the global EV market fall by 3.2pp year on year.

BYD owed much of this success to its domestic performance, where its PHEVs sold in greater volumes than its BEVs. However, this imbalance levelled out on a global level, where all-electric models made up 50.1% of its total EV sales.

The BYD Seagull, also known as the Dolphin Surf in select markets, was the brand’s best-selling EV in 2025. The BEV accounted for 10.3% of the carmaker’s plug-in volumes in the year.

It was closely followed by two PHEVs. The BYD Song Plus, also known as the Seal U, made up 8.3% of BYD’s EV sales. Meanwhile, the Qin Plus captured a 7.4% share. All three have been offered by the carmaker since at least January 2024.

This year, the carmaker can be expected to continue developing its presence globally. The brand is looking to offer 2,000 points of sale in Europe, according to Reuters. BYD wants to produce and source half its components from its Brazilian factory by the end of 2026.

This expansion will need to pay off as the carmaker’s EV sales fell consistently throughout the latter half of 2025. From July onwards, its monthly volumes dropped from between 2.6% and 28% year on year.

Tesla’s global tumble

Tesla took second place in the global brand ranking. It sold 1,635,753 units and accounted for 7.8% of global EV deliveries. However, both results equated to losses for the brand. Its deliveries were down 8.5% compared with 2024, while its EV market share sank 2.5pp.

This is still impressive given that the carmaker only sells BEVs while its competitors also offer PHEVs. Focusing on all-electric cars, Tesla made up 11.9% of global volumes. However, this was still down from 16.5% in 2024.

The Tesla Model Y accounted for nearly two-thirds of the brand’s volumes in 2025 at 66.4% with 1,085,521 units. With just under half of this share, the Model 3 made up 30.5% of the carmaker’s sales. The Cybertruck, Model X and Model S made minimal contributions towards Tesla’s sales, accounting for 1.5%, 1% and 0.6%, respectively.

Looking ahead, Tesla plans to make some major changes to its operations. Its top-selling model will see the launch of a more affordable, all-wheel drive powertrain, Business Insider reported. This also provides an opportunity for the carmaker to remove the ‘Standard’ edition naming convention.

Electrek reported that the Model S and Model X are being discontinued because the carmaker is pursuing autonomous technologies. The BEVs can be expected to be shelved by the end of the second quarter this year. This follows the brand’s new strategy to lean into artificial intelligence, autonomous technology and robotics.

Geely brand generates growth

Geely, including its Galaxy models, sold the third-largest volume of EVs in 2025. In total, it moved 1,196,394 units, equating to a 160.9% year-on-year increase. This was the highest rate of growth recorded in the brand top 10.

Last year’s improvement was also up on the 120.1% rise recorded in 2024. This recent growth elevated Geely’s market share to 5.7% in 2025, up from 2.7% in 2024.

Three BEVs topped the brand’s model offering in terms of volume. The Geely Geome Xingyuan, also known as the EX2, accounted for 39.6% of the brand’s EV sales last year. It was followed by the Panda Mini with a 13.6% share. The carmaker’s third most popular model was the E5, also known as the EX5, with an 11.5% hold.

Looking ahead, Geely wants its global vehicle sales to reach 6.5 million units by 2030. More than one-third of this figure is expected to be generated by overseas sales. The overall goal is to be among the top five biggest carmakers during a time of increasing competition.

Brand table titans

Below the top three seven-digit sales performers sat a range of brands, many boasting their own EV delivery growth. With increasing competition in the global EV market, only a handful of top-table listed carmakers saw EV sales declines.

Wuling, including Baojun models, took fourth with 912,260 vehicles hitting the roads. This was up by 32.5% compared with 2024, while its market share climbed by 0.4pp to 4.4%. 93.8% of the carmaker’s EV sales came from BEVs, with the Wuling Mini recording 431,779 deliveries alone.

Then came Leapmotor, with an impressive 97.6% sales increase to 569,629 units. This gave it a 2.7% share, up 1pp. The C10 BEV led its efforts, recording 118,354 deliveries in the year. While lower than its BEV performance, the carmaker recorded 107,803 EREV sales across 2025, including the C16, C10, C11 and C01.

The first legacy European brand came in sixth. Volkswagen saw its EV sales climb by 25.1% to 568,032 units. This gave it a market share of 2.7%, up by just 0.1pp. BMW was not too far behind, although its EV deliveries dropped by 0.4% to 535,910 units. This saw its share drop by 0.5pp to 2.6%.

With EV deliveries increasing by 17.1%, Aito moved 453,037 units, making up 2.2% of the plug-in market in eighth. This was static on its 2024 performance.

Xpeng recorded 427,309 sales, up 126.4% year on year. This meant a 0.9pp boost to its EV market share, which hit 2%. The third decline in the table came in 10th, as Li Auto’s EV sales fell by 19.3% to 424,987 units. Accordingly, its share fell by 1pp to 2%.

Which brand dominated the European EV market in 2025?

Amid historic electric vehicle (EV) growth in Europe during 2025, one brand emerged as a comfortable winner. Behind, some carmakers enjoyed significant improvements, while others faced big declines. Autovista24 journalist Tom Hooker reviews the winners and losers.

Europe’s EV market performance in 2025 was record-breaking, for many reasons. The continent recorded 3,881,325 battery electric vehicle (BEV) and plug-in hybrid (PHEV) sales from January to December. This equated to an additional 924,422 units compared to 2024, according to EV Volumes.

The figure also marked a year-on-year improvement of 31.3%, the steepest growth achieved since 2021. So, following a marginal decline in 2024, this can be seen as a strong rebound for European EV sales.

One million EV sales surpassed

This bounce-back was helped by soaring volumes in the latter part of the year. For the first time, Europe recorded more than one million sales in a single quarter. Between October and December, a total of 1,150,986 new EVs were delivered. This was 203,691 units higher than the previous record set in the second quarter of 2025.

The figure translated to a staggering growth of 40.9% year on year. This was the continent’s best improvement since the third quarter of 2021.

Furthermore, it ensured double-digit growth in every quarter of 2025. Volumes lifted up gradually throughout the year, starting with a 20% rise from January to March. This was bettered by 27.4% and 35.5% increases in the second and third quarters, respectively.

This culminated in a surging December performance, which saw the highest number of EV sales ever achieved in one month. With a total of 439,052 units, the result overcame a long-standing record set back in December 2022.

This figure represented a year-on-year sales increase of 48.5%, the biggest monthly percentage growth seen since August 2022. December’s increase was complemented by significant improvements in October and November of 36.6% and 36.4%, respectively.

Europe’s best-selling EV brand

Among surging EV growth in Europe, Volkswagen (VW) comfortably posted the most sales. The marque enjoyed a 86.8% year on year rise to 426,325 units. Out of the top five best-selling EV brands in Europe, this was the highest percentage increase recorded.

Consequently, its market share soared from 7.7% to 11%, becoming the only carmaker to surpass the 10% threshold in 2025. VW’s full-year performance was consolidated by a strong fourth quarter, topping the table with a 52% year on year improvement.

Overall, 2025 was a comeback year for VW, which previously led the continent’s EV standings in 2021. It went on to place third in 2022 and 2023, before dropping to fifth in 2024.

VW’s success can be attributed to three models from its ID range. This was the ID.3, ID.4 and ID.7. These models accounted for 54.8% of the brand’s EV total, with the ID.3 recording the highest share of the trio at 18.5%. The ID.4 and ID.7 made up for 18.3% and 18% of volumes, respectively.

Another model that performed strongly was the VW Tiguan, which accounted for 14.2% of VW’s EV sales in 2025.

The carmaker will be hoping that an electric model offensive can help it to retain its top spot in 2026. The much-anticipated ID.Polo, previously called the ID.2, will make its debut in spring 2026. It is one of six new EVs planned for launch this year.

Could the Neue Klasse drive volumes?

BMW made it a fourth-consecutive year of second-place finishes in 2025. The brand’s market share fell by 1.2 percentage points (pp) due to increased competition, ending the year at 8.7%. This came despite a 15.6% improvement in sales to 337,298 units.

BMW’s sales consistency was also shown in the final quarter of 2025, as the manufacturer posted a 15% EV sales increase.

The marque’s best-selling plug-in over 2025 was the BMW iX1, representing 20% of its overall total. The i4 and X1 also enjoyed solid volumes, with 13.7% and 11.6% shares, respectively.

Like VW, BMW will hope to continue its upward momentum into 2026, thanks to new models. The iX3, the first EV to use the Neue Klasse platform, will hold its official European market launch on 7 March. The second Neue Klasse EV, the i3, is expected to enter series production in the second half of 2026.

EV dominance for German brands

Mercedes-Benz claimed third in the cumulative table. So, for the first time since 2021, Europe’s top three best-selling EV brands came from Germany. However, with a 1.6% rise to 261,438 units, Mercedes-Benz did not enjoy the same sales pace as VW or BMW. Unsurprisingly, its market share dropped by 2pp to 6.7%.

A wide range of EV models contributed to its figures. Capturing 16% of plug-in volumes, the Mercedes-Benz EQA posted the highest sales, followed by the GLC with a 15.1% share. The Mercedes-Benz EQB also had a positive year, accounting for 13.3% of overall deliveries.

The new generation of the brand’s GLC SUV could help the brand improve on its marginal growth. Deliveries are expected to begin in mid-2026 for some countries, such as the UK. The new electric GLB also opened its order books in Europe after celebrating its global debut at the Brussels Motor Show.

Mercedes-Benz’s electric SUV range will be expanded further with the new generation of the C-Class and GLA. Both models will celebrate their premieres this year. Elsewhere, the updated CLA Shooting Brake will host its European market launch in March 2026.

This comes after the saloon version of the new CLA began deliveries in 2025. The latter may have played a part in the manufacturer’s 6.1% sales growth from October to December.

Tesla’s European EV troubles

Tesla was the fourth best-selling EV brand in Europe in 2025. This was a disappointing result for the BEV-only carmaker, which took the title in 2022, 2023 and 2024.

A total of 238,511 new Tesla models were delivered between January and December, its lowest full-year figure since 2022. The number also equated to a 27.1% slump year on year. Its market share also plummeted from 11.1% to 6.1%. Tesla placed seventh in the fourth quarter standings with a 22.2% sales drop.

Unlike the other carmakers in the top 10, Tesla’s volumes in 2025 were almost solely driven by two models. This was the Model Y and Model 3, which made up 99.4% of the brand’s total. The former recorded the majority of sales, with a 63.1% share, while the Model 3 accounted for 36.3% of deliveries.

Both BEVs received a new, lower-cost version at the end of 2025. According to Reuters, the Model Y Standard launched in October. This was followed by the Model 3 Standard in December, the news outlet wrote.

Audi’s fourth-quarter flourish

Just 8,613 units behind Tesla in the full-year standings came Audi. The German marque achieved 33.3% growth in 2025, as 229,898 new models left dealerships. Despite a double-digit improvement, its market share only saw a marginal rise of 0.1pp to 5.9%.

Of Europe’s top five best-selling EV brands, Audi ended the year well. Sales surged by 95.9% year on year in the fourth quarter.

Three of Audi’s e-tron BEVs made up most of the brand’s cumulative figure. This was the Q4 e-tron, the Q6 e-tron and the A6 e-tron. The trio accounted for 64.9% of Audi’s EV sales, while the Q4 e-tron alone made up 27.2%.

Towards the end of 2025, the marque launched a new entry-level variant of the SUV, which may help maintain its sales pace this year.

The Q6 e-tron and A6 e-tron achieved market shares of 24.9% and 12.8% within the carmaker’s stable, respectively. Outside of the e-tron model range, the Audi A3 also posted positive figures, making up 11.6% of Audi’s total volumes.

While the brand’s best-sellers came from larger segments last year, future volumes may be boosted by an upcoming entry-level BEV. Production of the model is planned to start in 2026.

Triple-digit EV growth

Fellow VW Group brand Skoda secured sixth in the full-year standings, jumping up from ninth in 2024. Volumes soared by 109.1% compared to one year prior, with 212,721 deliveries. This translated to a market share of 5.5%, up 2.1pp year on year.

Sales pace slowed slightly in the final quarter, with the Czech brand posting a 74.2% increase.

Skoda could continue its rise this year, with the introduction of the Epiq. The all-electric city SUV will be fully unveiled in the first half of 2026. Meanwhile, a large all-electric SUV, called the Peaq, is scheduled to hold its world premiere this year.

On the other hand, Volvo endured a 13.1% EV delivery decline in 2025, landing seventh. With 207,098 sales, it trailed Skoda by just 5,623 units. The manufacturer made up 5.3% of total EV volumes, down 2.8pp year on year. It placed ninth in the fourth quarter standings, after a 2.1% fall in sales.

Volvo will be hoping to bounce back in 2026, aided by the introduction of a new BEV model called the EX60. Following the success of the smaller EX30, the mid-size SUV is scheduled to begin deliveries this summer.

BYD’s rapid EV expansion

BYD comfortably recorded the steepest growth out of Europe’s top 10 best-selling EV brands in 2025. Sales surged by 271.8% year on year to 187,112 units, enough for eighth in the table. In turn, its market share jumped from 1.7% to 4.8%.

The Chinese brand managed an even higher placing of fifth in the fourth quarter standings, as volumes improved by 222.8%.

BYD’s EV range will be bolstered by the BYD Atto 3 Evo, a comprehensive update of its existing BEV SUV. Deliveries in some markets, such as Belgium and Luxembourg, are expected to start in spring 2026.

Renault also enjoyed a strong finish to 2025 in ninth. The marque delivered 172,700 new models between January and December, ensuring an improvement of 87.3% year on year. It took a 4.4% market share, up 1.3pp. Renault saw greater sales growth in the fourth quarter, with a 95.3% increase compared to the same period in 2024.

The brand’s new Twingo city car may help maintain sales pace heading into this year. The BEV opened its orders to the general public in January 2026.

Closing out the full-year standings was Cupra. The carmaker delivered 155,220 EVs from January to December, translating to a 69.3% increase year on year. Consequently, its share rose by 0.9pp to 4%. Along with fellow VW Group brands, Cupra is also launching a small BEV in 2026, called the Raval.

Narrowly missing out on a top 10 finish in 2025 was Ford. The American marque finished just 712 units behind Cupra in the full-year table. This was despite a strong end to 2025, with an 87.1% delivery improvement in the fourth quarter alone.

Strong start to 2026 for Italian new-car market as new brands make impact

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

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

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

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

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

PHEVs and BEVs provide new-car push

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

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

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

Italian BEV incentive wake receding?

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

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

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

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

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

Automotive package clarity required

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

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

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

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

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

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

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

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

Chinese models move into the Italian mainstream

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

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

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

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

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

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

Hybrid momentum continuing?

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

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

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

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

Is 2026 the year ICE finally melts away in Italy?

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

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

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

Spain returns to new-car market growth, but is trouble ahead?

Spain was the most impressive new-car market of Europe’s big five last year and started 2026 with growth. But behind the positivity, is there a volume challenge ahead? Autovista24 special content editor Phil Curry examines the data.

Spain’s new-car market resumed its upward trajectory after a stumble in December. The country saw 73,103 registrations in January, according to industry association ANFAC.

This represented a 1% increase compared to 12 months prior. Despite the slow growth, however, it displays promising signs for the market. In January 2025, new-car deliveries were boosted by replacement schemes. This was in the wake of Storm Dana, which hit the country at the end of 2024.

ANFAC states the relief programme saw an additional 3,995 units delivered in the first month of 2025, funded through the Reinicia Auto Plan. Excluding these registrations from the January 2025 figures would have resulted in a 6.8% improvement last month.

Uncertainty ahead for Spain?

However, the country’s new-car market is also facing uncertainty. New incentive plans for electric vehicle (EV) purchases are yet to be finalised. The former MOVES III subsidies drove plug-in sales and the overall market forward in 2025. Until incentives are implemented, this may place pressure on volumes.

A delay in activating EV subsidies could hinder the private sector, where buyers can be more price sensitive. While EV list prices declined in 2025, they remained more expensive than ICE models on average in Spain, according to GANVAM.

The private channel did see registrations decline by 6.4% year on year to 35,775 units in January. Business sales fall by 2.4% in January, with 27,312 deliveries. Only sales to rental companies saw an increase, with volumes up 63.5% to 10,016 units.

‘It is true that rental car purchases have been key, but private buyers are also holding strong,’ outlined Félix García, director of communications and marketing at ANFAC.

‘We in the sector insist that there is currently no support whatsoever for electric vehicles. The Auto+ Plan has not been published, nor is the extension of the 15% income tax deduction for the purchase of an electric vehicle in effect,’ he continued.

‘It is necessary to provide certainty to the market and consolidate the transformation towards electromobility. It is an unstoppable trend, as can be seen in the fact that diesel’s market share is steadily declining and was below 5% [in January].’

Trouble ahead for BEVs in Spain?

Registrations of battery-electric vehicles (BEVs) increased by 26.9% in January, reaching 6,472 units. This was enough for an 8.9% market share, up by 1.8 percentage points (pp) according to Autovista24 calculations.

BEV deliveries were boosted by the reintroduction of MOVES III in 2025. Between May and August, the powertrain saw triple-digit percentage improvements. Double-digit rises followed since then.

In January, the market was due to hear a funding criteria announcement for the new Plan Auto+, which was first unveiled in December 2025. This was expected to set out how Spain’s central government will handle the expected €400 million subsidy scheme.

However, the European Alternative Fuels Observatory noted that industry stakeholders have highlighted ongoing uncertainties. These centre on the environmental criteria for determining eligibility. Electrive reported that Spain’s Ministry of Economic Affairs want to adopt a system similar to France’s current EV incentives.

This would calculate the entire carbon footprint of a vehicle. It also means that models built outside of the EU would be ineligible for funding, according to La Tribuna de Automoción.

The debate around the criteria of the plan has stalled the official approval and publication. This could impact BEV sales and registrations going forward. Drivers may wait to see what financial aid will be offered, and which brands and models it will apply to.

‘The lack of a support plan for the purchase of electric vehicles has discouraged many sales and prevented the generation of orders for the coming months,’ confirmed Raúl Morales, communications director of Spanish dealer body Fanonauto.

‘That is why it is so important that the details of this plan, especially the amounts and their retroactive application, are communicated as soon as possible. This will give buyers confidence and allow us to overcome the market stagnation we are already seeing in January,’ explained Morales.

PHEVs continue forward

The plug-in hybrid (PHEV) market continued its strong growth in January. In total, 8,740 units were delivered to customers, a rise of 66.7% year on year.

This gave the powertrain a 12% market share, up by 4.8pp year on year. While this was a good result, January marked the first time since April 2025 that volumes missed triple-digit percentage growth.

The confusion around the Plan Auto+ scheme does seem to be impacting the market. Morales highlighted that many registrations in January came from sales in December. This was during the MOVES III period, which ceased on the last day of 2025.

It seems that the market relied on the previous incentive scheme to uphold volumes last month. Yet, as these sales coast out, there could be problems ahead for the market. The industry is likely hoping for a quick resolution to the bottleneck holding up the latest incentives.

Combining BEV and PHEV registrations, the EV market recorded a total of 15,212 deliveries in January. This was an increase of 47.1% compared to 12 months prior, according to Autovista24 calculations. The technology saw a market share of 20.8%.

Spain’s ICE slide continues

Petrol’s slump continued into January, as buyers continued to move away from the powertrain. A total of 16,533 units were delivered in the month, a decrease of 22.5% year on year.

The fuel type accounted for 22.6% of overall volumes, a drop of 6.8pp year on year. However, despite this fall, it is still comfortably the second-best powertrain after hybrids.

Meanwhile, diesel registrations fell by 33.7%, as just 3,299 units took to Spanish roads. This was enough for a 4.5% market share, down by 2.4pp.

Combined, the internal-combustion engine (ICE) market dropped by 24.6% compared to January 2025, according to Autovista24 calculations. The technology’s market share also fell closer to EVs’ hold, reaching 27.1% in the month. This was a fall of 9.2pp and meant the gap between the two groups was just 6.3pp.

Hybrid dominates new-car share

The hybrid market, made up of both full and mild hybrid powertrains, achieved an 8.9% improvement, according to Autovista24 calculations. This gave the technology a 48.7% market share, a rise of 3.6pp.

Adding hybrids to the EV total, registrations of electrified models increased by 18.1%, based on Autovista24 analysis of available data. This led to a 69.5% market share, up 10.1pp.

However, Spain’s new-car market must be prepared for the impact of incentive uncertainty. With no EV subsidies currently in place, the market’s performance remains in question.