While the UK new-car market started 2026 positively, battery-electric vehicles (BEVs) struggled as external circumstances impacted registrations. But how did plug-in hybrids (PHEVs) push the country’s overall market to growth? Autovista24 special content editor Phil Curry explores the data.
The UK’s new-car market started 2026 with a year-on-year improvement. However, growth was predominantly driven by the PHEV market, as BEV demand stagnated.
In total, 144,127 new passenger cars were registered during January. This was a 3.4% improvement, according to data released by the SMMT. The month is traditionally a slower one for new-car deliveries in the UK, highlighted by the unit-total increase of just 4,782 models.
January marked a second consecutive month of improvement, and the country will be hoping for a better start to 2026. January 2025 began a rollercoaster year with a decline, the first of six monthly volume drops in the 12-month period.
Should February prove positive, it would be the first period of three or more successive months of growth since between August 2022 and July 2024. This highlights the market’s inconsistent performance since August 2024.
However, the SMMT is optimistic about 2026. The UK motoring authority has revised its forecast from October 2025, and projects a 1.4% rise in volumes across the year. This would mean the delivery of 2.048 million units.
But some powertrains came up against strong results from January 2025, creating a challenging picture for the beginning of 2026.
Influences on BEVs
The UK’s BEV market stalled last month, as exceptional circumstances combined to impact figures. With 29,654 registrations, volumes increased by just 0.1%. This equated to 20 more all-electric units being taken to UK roads compared with January 2025.
This was the worst year-on-year performance since December 2023. Both these poor results are the work of external market dynamics. At the end of 2023, carmakers held back BEV registrations. This was so that deliveries counted towards the zero-emission vehicle (ZEV) mandate. The move resulted in a 34.2% decline in December’s figures.
Fast forward to January 2025, and another market change led to a three-month period of growth above 40%. In this instance, it was the introduction of vehicle excise duty (VED) in April 2025 that caused a pull-forward effect. Drivers rushed to have their BEVs registered before the implementation, to avoid an initial one-off VED cost.
There was another pull-forward effect at the end of 2025. Carmakers rushing to meet the year’s ZEV mandate target may also have impacted January figures. These combined factors, together with a traditionally slower month for deliveries, have skewed the overall BEV result.
This left the powertrain with a market share of 20.6%, the lowest recorded since April 2025. This was also a drop of 0.7 percentage points (pp) compared to January 2025. This may be a concern for the industry.
Difficulty for BEVs ahead?
In 2026, the ZEV mandate target for carmakers to achieve is 33% of their fleet. This is up from 28% last year. The overall market only achieved a 23.4% share across 2025, so starting with a decline is not the optimal position for the sector to be in.
However, the SMMT has revised its forecast for BEV uptake from its previous October predictions. The powertrain is expected to reach a 28.5% share of the UK new-car market by the end of this year. This would represent progress over 2025, but still fall short of the mandated target.
Still, the industry body is calling for a holistic review of the UK’s transition to BEVs. The country is still on course to ban sales of new petrol and diesel models from 2030. This is despite a pushback on similar plans in the EU.
Alongside the Electric Car Grant incentive scheme, the government launched a campaign in January highlighting the benefits of going electric. However, this will need to combat the new eVED pay-per-mile scheme set to come into effect in 2028. With this in mind, the SMMT believes demand will be further suppressed in the coming years.
‘Britain’s new car market is building back momentum after a challenging start to the decade. It is also decarbonising more rapidly than ever and, despite a January dip in EV market share, the signs point to growth by the end of the year,’ commented SMMT chief executive Mike Hawes.
‘The pace of the transition, however, may be slowing and is certainly behind mandated targets. With sales of new pure petrol and diesel cars planned to end in less than four years, there needs to be a comprehensive review of the transition now, to ensure ambition can match reality,’ he concluded.
PHEVs provide relief
BEV’s electric vehicle (EV) stablemate, PHEVs, provided the uplift needed for the new-car market to achieve growth. Without the 18,557-unit total achieved by the powertrain, the whole market would have experienced a 0.9% decline.
The additional 5,959 units equated to a 47.3% year-on-year increase. This marked the technology’s best performance in terms of volume and percentage growth since September 2025. It also represented a continued streak of double-digit improvements that stretches back to February 2025.
This also meant PHEVs achieved a 12.9% market share, up by 3.9pp. This left the powertrain just 0.5pp behind the full-hybrid (HEV) market. PHEVs closed this gap across 2025, with the powertrains’ shares split by 4.2pp in January of last year. This is a trend that looks set to continue in 2026.
Combining BEV and PHEV volumes, the EV market saw 48,211 registrations in January. This was 14.2% higher than 12 months prior. This allowed for a 33.5% market share, up 3.2pp.
However, EVs were unable to repeat their December high of beating the internal-combustion engine (ICE) model share. This was thanks in part to the poor BEV performance, together with a stronger ICE result in the month.
Slow times for HEVs
The UK records hybrid registrations differently from other major European markets. Only full-hybrid (HEV) figures are counted in this category, while mild-hybrid totals are merged with their respective petrol and diesel counterparts.
In January, 19,297 HEVs were registered, a 4.8% improvement year on year. This equated to a rise of 884 units and a 13.4% market share, up 0.2pp.
The powertrain has seen slow growth in the UK. During 2025, the only months with double-digit volume rises were the plate-change periods of March and September. This allowed PHEV registrations to catch up, setting up an intriguing battle between the two hybrid technologies this year.
Combining HEV and EV figures, electrified vehicles recorded 67,508 registrations last month, up 11.3% year on year. This gave the grouping a 46.8% market share, up 3.3pp, but not high enough to topple the ICE segment. This was the first time since August 2025 that electrified powertrains were not the dominant grouping in the country.
ICE slide slows
Petrol registrations continued to decline in January. However, their 1.9% fall was the best monthly result since a 2.4% improvement in September 2025. In total, 68,757 units were delivered to customers, a drop of 1,318 units.
January marked the fourth month in a row of single-digit declines, suggesting the market’s fall is slowing. The 47.7% market share recorded in the month was down by just 2.6pp. This was the fuel type’s best result since May 2025.
Meanwhile, diesel deliveries fell by 8.8%. However, with 7,862 units, this was a drop of just 763 registrations year on year. The powertrain took 5.5% of the UK’s total volume, a fall of 0.7pp.
Combined, ICE registrations achieved 76,619 units, a fall of 2.6%. The powertrain group returned to dominance in the month, with a 53.2% hold of the market, down 3.3pp.
The slowdown in the ICE decline helped the UK’s overall growth in January. However, with the new ZEV mandate and the resurgence of PHEVs, 2026 could see swings towards electrified models.
The German new-car market declined for the first time in seven months in January, fuelled by internal-combustion engine (ICE) losses. However, new arrivals were still able to record surging volumes. Autovista24 journalist Tom Hooker unpacks the figures.
Germany’s new-car market struggled in January, with 193,981 registrations representing a 6.6% decline year on year. This was driven by a 14.4% slump in private deliveries, according to the KBA. Conversely, the commercial market grew by 2.1%.
In a familiar trend, electric vehicles (EVs), made up of battery-electric vehicles (BEVs) and plug-in hybrids (PHEVs), provided a boost. However, ICE models placed downward pressure on volumes.
In this case, the force of petrol and diesel declines prevailed. A stagnating hybrid market, combining full and mild hybrids, was unable to provide any assistance. Moreover, while EV growth remained strong, it did slow significantly.
External factors may have also influenced Germany’s sluggish start to the year. The Federal Government adjusted its GDP growth forecast downwards at the end of January, from 1.3% to 1%.
Private consumption in Germany is projected to rise by just 0.8% in 2026 according to the Annual Economic Report. On top of this, unemployment figures reached a 12-year high in the country during January, Reuters highlighted.
So, as economic growth and labour market momentum slow, this could cause delays in new car purchases. It may also push more drivers towards financing agreements instead of buying a car outright.
Overall, January knocked the German new-car market off its footing. However, some brands performed better than others in a slowing market.
Which brands recorded growth?
Volkswagen (VW) recorded more deliveries than any other carmaker in the German new-car market during January. This was despite suffering a double-digit decline compared to the previous year. Fellow VW Group brand Skoda was the country’s second-best-selling marque in the month. However, unlike VW, it enjoyed a double-digit improvement.
Domestic marques Mercedes-Benz, BMW and Audi took third, fourth and fifth, respectively. SEAT secured sixth, despite suffering the biggest year-on-year decline out of the 10 best-selling brands, at 29.8%. Opel, another Stellantis brand, enjoyed a 27.4% sales increase in seventh.
Behind, Ford endured a 11.1% drop in eighth, as Hyundai took ninth. Fiat rounded out the top 10 with an 87.2% surge compared to January 2025. This improvement made it one of the fastest-growing carmakers in the month. The marque with one of the largest volume surges was BYD, with a 1,018.7% year-on-year uptick to 2,629 registrations.
Lynk & Co saw even greater growth of 1,175%, but only to 51 units. Leapmotor saw a triple-digit increase, alongside Xpeng and Polestar. But once again, these brands’ results were also based on lower volumes.
Slowing EV growth
While carmakers saw varied registration growth, the electric vehicle (EV) market continued its streak of double-digit improvements. Volumes increased by 23.5% in January compared to 12 months prior.
This growth seems impressive at first glance, yet it marked a significant slowdown. It was the slowest EV registrations performance since December 2024. With 64,482 units hitting the roads, it also marked the lowest monthly delivery total since August 2025.
Smaller volumes can be explained by January typically being a slower month for new-car registrations. However, with EVs playing an increasingly important role in the overall market performance, maintaining growth rates has become crucial.
The powertrain group made up 33.2% of overall deliveries in January, up 8.1 percentage points (pp) year on year.
‘The passenger car market has made an extremely cautious start to the new year. For sustainable overall market growth in 2026, we need a further increase in BEV order intake,’ commented VDIK president Imelda Labbé.
Are incentives holding back demand?
Germany’s new EV incentives are set to boost registrations of plug-in powertrains. Buyers can submit funding applications for the new scheme, applicable to both BEVs and PHEVs, retroactively from 1 January 2026. The subsidy is expected to scale with taxable household income and family size. It is also dependent on the vehicle’s powertrain.
However, applications must be submitted through an online portal, which is expected to open in May 2026. This could mean that some buyers are withholding purchases to ensure incentives are applied closer to the point of sale. But for now, the market will need to survive without the immediate aid of subsidies.
‘Customers now need clarity as quickly as possible about the modalities of the BEV subsidy that has been promised since January,’ Labbé confirmed.
Elsewhere, the ZDK urgently appealed that the government does not waste time in implementing the incentives.
‘Delays in the implementation process have been causing uncertainty among companies and customers since the announcement of the EV subsidy two months ago,’ highlighted ZDK president Thomas Peckruhn.
BEVs losing momentum?
Of the two EV technologies, BEVs saw marginally stronger growth. Registrations improved by 23.8% compared to 12 months prior, with 42,692 units leaving forecourts. This was the smallest all-electric increase in percentage terms since June 2025. Despite this, its share soared by 5.4pp to 22%.
PHEVs enjoyed a 23% uptick in volumes, with 21,790 units. Yet, this was its lowest improvement since December 2024. The powertrain captured 11.2% of total deliveries, up 2.7pp year on year.
ICE maintains declines
In line with other major European new-car markets, registrations of ICE-powered models declined again in Germany during January.
Volumes slumped by 25.5% in the month, with 71,004 units. This represented the powertrain group’s biggest year-on-year drop in percentage terms since June 2025. Its share fell by 9.3pp to 36.6%.
Petrol suffered the bigger drop of the two fuel types, with a 29.9% delivery downturn. This was its fourth consecutive double-digit decline, and its biggest monthly fall since June 2025. The powertrain recorded 43,695 registrations, nearly half of its total from January 2024.
Petrol’s share slipped to 22.5%, down by 7.5pp year on year. It also marked the closest that the fuel type has ever been to BEVs in terms of market share. Just 0.5pp separated the two powertrains in January, compared to a 13.4pp gap one year ago.
Diesel deliveries dropped by 17.1% to 27,309 units. Like petrol, this marked its fourth consecutive double-digit decline. Furthermore, it also represented the lowest diesel volume since August 2025. Yet, its 14.1% market share, although down by 1.8pp year on year, was the powertrain’s highest since July 2025.
Has hybrid growth already peaked?
The hybrid market endured a 1.8% dip in January, with 58,206 new models taking to the road. The result comes after marginal growth in December and an uncharacteristic decline in November. These results signal a shift in the technology’s consistent upward momentum. Before this, hybrids achieved 14 months of consecutive growth.
While it pushed past petrol to become Germany’s most popular powertrain in 2025, recent performances may suggest that hybrids have reached their natural peak. The technology accounted for 30% of overall registrations in January, up 1.5pp year on year, but well below the 8.1pp rise achieved by EVs.
So, as a transition technology from ICE models to EVs, the tide may have already shifted in the latter’s favour. Moreover, as EV charging infrastructure improves and technology becomes more advanced, buyers may be less compelled to choose a hybrid.
What is undeniable is that electrified models, comprised of EV and hybrid volumes, now dominate the German new-car market. The powertrain group made up 63.2% of overall volumes in January, up 9.5pp year on year. This was helped by a 10.1% growth in registrations to 122,688 units.
Which carmakers are considering partnerships? What are the fastest-selling used cars across Europe? How might the EU’s automotive package impact battery-electric vehicle (BEV) sales? Autovista24 editor Tom Geggus reveals all in The Automotive Update podcast.
In this episode, an update on a potential partnership between major automotive manufacturers. Plus, a look at how used-car markets performed across European countries during January. Finally, what are the latest views on the EU’s automotive package?
Ford and Geely are in partnership talks, according to a number of people familiar with the matter, Reuters has reported.
Discussions are apparently advancing, particularly around manufacturing locations. Geely may be able to use Ford’s factory in Spain to produce vehicles for the region, navigating import tariffs.
Sources close to the matter also revealed a possible framework for exploring autonomous driving and other technologies. This could help curb costs at a time when development is steering decision making.
Separately, Renault is expected to build a small electric vehicle engine with parts from Shanghai e-drive, as reported by L’Argus. The entry-level drive component will be built at the carmaker’s site in Cléon, Northern France. It will also be used in Dacia and Mitsubishi models.
A new production line is anticipated in early 2027 and is set to produce 120,000 units annually. Renault currently imports Shanghai e-drive components for its Twingo model, according to Reuters.
Fastest-selling used cars
European used-car markets could soon see increased demand, as revealed in the latest Monthly Market update. Consumer price indices appear resolutely high as affordability remains a sticking point.
Meanwhile, new-car list prices continued to climb in Europe last month. Austria, France, Germany, Italy, Spain, Switzerland and the UK all recorded year-on-year increases. Some used models are already seeing quick selling times.
Austria saw the fastest model-selling time of the observed markets with the Audi Q3. In Switzerland and the UK, the Tesla Model Y sold the fastest. The Toyota Yaris moved quickly in France, while its stablemate, the Toyota Corolla, saw fast sales in Spain. Meanwhile, the Volvo XC40 spent the least amount of time on dealership forecourts in Germany.
Automotive package update concerns
Sustainable mobility group, Transport and Environment (T&E), has released a position paper citing potential results of changes to emissions targets.
In mid-December last year, the European Commission published its automotive package proposal. This outlined possible changes to the current new-car emissions targets. Key to this was the possibility of internal-combustion engine (ICE) vehicle sales in the EU after 2035.
T&E claim that moving the 2035 CO2 reduction target from 100% to 90% will reduce the expected BEV share from 100% to 85%. It also believes the package will introduce greater uncertainty. The paper outlined that BEV sales could fall by between 50% and 95%, depending on the powertrain strategy.
Additionally, adopting an average target between 2030 and 2032 is also expected to have a negative impact. T&E forecast a 10-percentage point reduction in the BEV share in 2030, down to 47%
After a difficult 2025, the French new-car market will be looking to bounce back in 2026. Battery-electric vehicles (BEVs) enjoyed some success, but were there any other green shoots of recovery in January’s registrations? James Roberts, Autovista24 web editor, assesses the latest data.
The new-car market in France underwent a slow start to 2026. In January, a total of 106,805 new vehicles were registered, according to Autovista24 analysis of PFA and AAA data. This marked a year-on-year decline of 6.9%.
The French new-car market recorded its worst January in 15 years, according to PFA. However, this excludes January 2022 during the semiconductor shortage crisis. Compared with 12 months ago, the drop in volumes amounted to 7,867 vehicles.
Understanding BEV gains in France
In 2025, any gains for BEV adoption were weighed down by wider declines in new-car volumes. This was exacerbated by a terminal fall in registrations of internal-combustion engine (ICE) vehicles, and wider market inertia.
Despite this, BEV uptake gathered significant late-year momentum in France, and this seems to have continued into 2026. BEVs emerged as the only powertrain to record growth in January 2026.
In total, 30,308 BEVs join France’s car parc, according to Autovista24 analysis of PFA and AAA data. This ensured a 28.4% market share, 11 percentage points (pp) up on January 2025. However, behind these apparently positive figures lies a complex picture.
BEV demand propped up by incentives?
Since late September 2025, electric vehicle (EV) adoption in France has been assisted by social leasing. This scheme was rolled out to help lower-income households access new BEVs at reduced monthly costs.
Aligned with this, commercial fleets have helped lift BEV registrations in recent months. These buyers are supported with a combination of tax reduction, infrastructure support and regulatory incentives. This makes BEVs an attractive option for fleets.
Despite these policy-led catalysts, which are undoubtedly firing BEV numbers, natural demand is harder to generate. Marie-Laure Nivot, analysis for AAA Data, underlined that: ’The peak in electric car sales recorded in January demonstrates the influence of purchase incentives and obscures the market picture.’
Emanuele Cappellano, head of Stellantis Europe, recently provided a stark assessment of the wider European BEV market and the appeal of buying an all-electric vehicle.
‘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.
Hybrids start where they left off
In 2025, hybrids, made up of full and mild hybrid models, took a considerable percentage of new-car markets across the EU. France was no exception, underlining a consumer powertrain preference.
This trend continued in January, as 51,171 full and mild hybrids took to French roads. This marked a marginal 0.5% year-on-year drop in volumes. However, the powertrain accounted for 47.9% of the overall market.
Hybrids continued to provide the bulk of electrified registrations in France. Together with PHEVs and BEVs, electrified models secured 80.8% of the market, a new high watermark. This momentum could be difficult to sustain should BEV demand fall and hybrid volumes stagnate or drop off.
While BEVs and hybrids performed relatively well, PHEVs started 2026 in a year-on-year deficit. 4,821 PHEVs left French forecourts, albeit with a small fall of 0.6%, equating to 31 units. In terms of market share, PHEVs captured 4.5%, up 0.3pp on January 2025.
Despite this, the bumper BEV return helped facilitate 32.9% market share for plug-in vehicles, an 11.3pp jump. With 35,129 new BEVs and PHEVs rolling out of dealerships in January, this helped continue a trend established in late 2025.
Petrol and diesel continue to fall
The arrival of a new year continued an old story for ICE registrations in France. In parallel with most of Europe’s new-car markets, both petrol and diesel sales continued to diminish in January.
In total, 15,326 new petrol vehicles were sold in France during the month. This ensured a dramatic year-on-year plummet of 14,648 units, down 48.9%. Despite the decline, the fuel type commanded a 14.3% market share, down 11.8pp. This made petrol the third most popular powertrain choice in France.
Diesel declines have become part of the French new-car market narrative. Just 2,521 units reached customers in January. As a result, it accounted for 2.4% of the overall market, just 0.1pp above the ‘other’ category. This includes hydrogen fuel-cells, super ethanol, natural gas, and liquified petroleum gas vehicles. However, when it comes to the used-car market in France, demand for diesel vehicles continues.
Combined ICE figures were eclipsed by both plug-in and electrified registrations in January. The combination of new petrol and diesel units hit a low of 17,847, underpinning a 48.9% year-on-year slump. As a result, the ICE market share equated to just 16.7%, 13.8pp down on January 2025.
In Europe, new-car list prices continued to rise as consumer price indices (CPIs) stuck close to record levels. As affordability pressures increase, used-car demand could grow in 2026. Against this backdrop, which models are already selling quickly this year? Tom Hooker, Autovista24 journalist, investigates.
Major European automotive markets entered 2026 following elevated CPI results in 2025. In December, the EU was 12 basis points (one basis point equals 0.01%) off a record high, Trading Economics reports.
The UK’s Office for National Statistics saw its CPI index continue to climb compared with 2015. Switzerland stood out as an exception, with inflation remaining stable year-on-year in December, according to Trading Economics.
Meanwhile, new-car list prices continued to climb compared to 12 months ago across all observed markets. Austria, France, Germany, Italy, Spain, Switzerland and the UK all recorded year-on-year increases in January. Spain saw the biggest new-car list price increase with 8.9%, followed by Austria at 8.4%.
At the same time, major used-car markets have recorded growing sales volumes. As new-car prices and CPIs climb upwards, the used-car market may present a more affordable option for consumers. With this in mind, what used models are already selling quickly this year?
Fastest-selling used cars in 2026
Across observed markets in January, the fastest-selling two-to-four-year-old used car was seen in Austria. The Audi Q3 took an average of just 27.7 days to leave forecourts. However, the average was recorded across just 15 units in the month.
In the UK, the Tesla Model Y led the fastest-sellers chart. It posted an average turnover rate of 29.6 days from 458 units. The battery-electric vehicle (BEV) placed ahead of the MG ZS, which was the country’s fastest-selling used petrol car.
The Tesla Model Y was also Switzerland’s fastest-selling two-to-four-year-old used car, taking 34.4 days to change hands. Yet, this was based on a much lower sales total of 25 units.
In Italy, the Dacia Sandero topped the chart, shifting 229 units in an average of 33.3 days. It was also the country’s fastest-selling compressed natural gas (CNG) model. Its sibling, the Dacia Duster, secured second place overall while leading the diesel chart.
Toyota Yaris’ speedy turnover
Roughly half a day separated the top two fastest-selling models in France during January. The Toyota Yaris led the leaderboard, moving 1,360 units in an average of 38 days. The Hyundai Tucson trailed with a much smaller transaction total of 288 units, recording a turnaround rate of 38.6 days.
Volvo’s XC40 was the fastest-selling model in Germany. The SUV took 39.6 days to leave dealer forecourts, with 242 sales recorded. Close behind was the Mercedes-Benz EQA with a 40.2-day turnover rate on average.
In Spain, Toyota took four of the five fastest-selling model positions. The Corolla led the pack, moving 63 units in an average of 42.3 days. The C-HR came second, while the Yaris took third. This meant that out of all observed markets, the hatchback appeared in the top five fastest sellers table in three different countries.
The only non-Toyota in Spain’s fastest-sellers list was the Peugeot 5008 in fourth. The model also topped the standalone diesel standings. Fifth went to the Toyota Yaris Cross.
Seasonal effects in Austria
‘Austria’s sales-volume index (SVI) for two-to-four-year-old passenger cars weakened sharply in January due to seasonal effects. Compared to December, the SVI dropped by 28.7%, reflecting a pronounced seasonal slowdown at the start of the year,’ outlined Robert Madas, regional head of valuations.
‘Yet, the index declined only by 5.5% year on year. This underlined that demand was just a bit softer than a year ago, despite some stabilisation in prices,’ he commented.
The active-market volume index (AMVI) also eased slightly month on month, falling by 1.2% compared to December. However, supply was 1.1% higher year on year. This indicated that stock levels remain relatively well balanced and slightly above last year’s level.
The average time needed to sell a used car increased further in January, rising to 69.6 days. This represented an increase of around one day compared to December and a nearly three-day deterioration year on year. Compared to the beginning of 2025, this signalled slower turnover and weaker buyer activity.
Among powertrains, full hybrids (HEVs) took the lead in turnover speed, taking an average of 62.7 days to sell. This was followed by diesel-powered cars, which took an average of 63.2 days to sell. Then came petrol-powered models at 69.6 days and plug-in hybrids (PHEVs) at 71.8 days.
BEVs showed significantly worse turnover speed compared to the previous month and one year prior. The technology continued to take the longest time to sell at 89.8 days.
Short-term price support
The residual value (RV) of 36-month-old cars at 60,000km, expressed as a percentage of original list price (%RV), was 47.8% in January.
‘This marked a 0.5 percentage-point (pp) increase compared to December. However, it also equated to a 0.4pp decline year on year. This suggests short-term price support despite a structurally softer market,’ highlighted Madas.
In absolute terms, the absolute trade RV rose to €22,742.9. This was up 2.5% month on month and 7.4% higher than a year earlier. The increase was partly driven by higher list prices, which climbed to an average of €47,573. This was up 8.4% year on year.
HEVs retained the highest trade value at 50.2%, followed by petrol cars at 49.9%. Then came diesel models with 48.6% and PHEVs with 45.4%. BEVs held the lowest %RV once again, at 38.6%. However, this was a slight improvement of 0.1pp month on month.
Looking ahead, %RVs are expected to decline slightly in the next few years. In December 2026, a 0.7% decline compared to December 2025 is forecasted. A 0.6% decrease is expected to follow in 2027.
Declining residual values in France
%RVs decreased slightly in France during January, while list prices remained stable. Overall, used-car volumes are always lower in January than in December, with the former being a historically quiet month.
Compared to December 2025, all powertrains took longer to sell on average. This was except for BEVs, which already took 90 days on average.
Petrol-powered cars followed the general trend of the month, while the RVs of diesel-powered vehicles were slightly less impacted. Used diesel models are still in demand in France as the volume of new internal-combustion engine (ICE) cars shrinks.
‘HEV %RVs decreased year-on-year. This marked a departure from the recent trend over the last few months, where the technology held value relatively well. This is also linked to the increasing number of HEV models offered in France. Most of these new entrants are from mainstream brands,’ said Ludovic Percier, senior RV analyst for France.
‘These cars do not hold RVs as well as Toyota’s HEVs, with the carmaker being the pioneer of this technology. In fact, three of the top five fastest-selling HEVs came from Toyota,’ he noted.
Overall, used HEVs are in demand in France, but carmakers cannot risk adding big price premiums to these models. This would jeopardise the powertrain’s RVs.
Are used PHEVs struggling?
PHEVs saw some worse results, with used-car buyers not accepting the powertrain’s higher prices. As a result, stock days increased compared to last year, reaching 71.2 days on average.
‘Many brands have seen list prices increase, as some PHEVs now feature longer ranges. In turn, this has impacted all PHEVs, with vehicles offering an electric-only range of below 60km most affected. PHEV demand and supply remain unbalanced. In previous years, many vehicles were sold to fleets on the back of fiscal advantages,’ said Percier.
‘However, private used-car buyers have no interest in paying such a high price for the technology. Year on year, the powertrain saw the SVI fall by 10%. Smaller and cheaper PHEVs in the C-SUV segment were the easiest to sell,’ he highlighted.
At 35.4%, BEVs retained the lowest percentage of their original list price after 36 months and 60,000km. Fleet users have seen high tax rate increases for all vehicles except for BEVs. These models only experienced a very slight increase, provided that they met France’s environmental score criteria.
This is helping keep the technology’s new-car volumes stable compared to last year, when social leasing was supporting volumes. This scheme will increase BEV volumes on the used car market in the future.
Reinforced fiscal BEV advantages for fleets will also help to push registrations forward. Overall, the new and used BEV markets continue to be crowded.
Conversely, ICE-powered models have faced heavier penalties and declining registrations since the beginning of 2025 in the new-car market.
Alongside increasing all-electric volumes, these two trends will likely accelerate the flow of BEVs into an already oversupplied used-car market. Social leasing will only exacerbate this situation when it is reintroduced.
Germany’s weakening used car demand
Following a solid end to 2025, used-car demand in Germany weakened noticeably in January. This reflected a seasonal slowdown at the start of the year. The SVI fell sharply to 71.6, down 28.4% month on month. Yet, on a year-on-year basis, demand only declined by 1%.
‘In contrast, supply conditions continued to improve, with the AMVI rising by 2% month on month. Compared to January last year, the AMVI surged by 18.8%. This confirmed a sustained recovery in used-car stock availability, particularly within the core age brackets,’ stated Madas.
The average number of days needed to sell a used car increased to 61.7 days in January. This marked around a one-day rise month on month and an increase of two days year on year. Benchmarked against the end of 2025, this signalled a slight slowdown in market liquidity.
Tesla and Volvo’s fast-selling BEVs
The average turnover speed of BEVs decreased slightly month on month. However, the technology was again the fastest-selling of any powertrain, taking just 55.3 days to leave forecourts. This was driven in part by bestsellers like the Tesla Model Y and the Volvo XC40.
Then came PHEVs at 56.1 days. Diesel-powered cars followed at 61.9 days, while HEVs took 63.6 days to sell. Petrol-powered cars sold the slowest, at 64.7 days.
Elsewhere, RVs came under renewed pressure. %RVs declined to 46.9% on average, down 1.2pp month on month and 0.8pp year on year. However, in absolute terms, trade RVs increased marginally to €21,617.6, supported by rising list prices. This translated to a 0.2% rise month on month and a 2.3% uptick year on year.
Petrol-powered cars led the market with a %RV of 48.3%, closely followed by diesel-powered models at 48.2%. HEVs were also not far behind, holding an average %RV of 47.9%. Meanwhile, PHEVs were a bit further back at 44%. BEV values decreased slightly and again retained the lowest %RVs at 36.8%.
‘Looking ahead, RVs are expected to remain under pressure, in line with previous forecasts. By the end of 2026, %RVs are projected to decline by 1.4% compared with December 2025 levels. Pressure is predicted to ease somewhat in 2027, with a smaller decline of 0.7% expected,’ forecasted Madas.
Italy’s continued residual value drops
In January, the dashboard displayed an increase in some metrics compared to December. Despite this, 2026 clearly carried on an RV trend observed at the end of 2025.
‘The rise recorded in January is a recurring pattern in the Italian market. This should be interpreted mainly as a seasonal effect. For an accurate reading, it is essential to compare RVs with those of last January,’ outlined Marco Pasquetti, cluster head of forecasting for Spain and Italy.
%RVs declined by 4pp year-on-year, corresponding to absolute values falling by €1,405 year on year.
At this stage, the market moved exactly as expected, following a trajectory of progressive RV declines that are expected to continue throughout 2026. Current forecasts for the end of the year point to a decrease of around 5.2%. This trend is likely to persist into 2027 before stabilising by 2028.
‘January’s %RV decline was broadly uniform across all powertrains. This was except for HEVs and PHEVs, which both showed a more pronounced contraction of 5.2pp. In contrast, LPG‑powered vehicles displayed remarkable stability, with a very modest reduction of just 0.6pp,’ noted Pasquetti.
BEVs continue to retain the lowest %RV of all powertrains. After three years and 60,000km, the powertrain retained only 29.5% of its original list price. This confirmed that the technology remains the most affected by current market dynamics.
Used cars show strength in Spain
Even in a month when operations tend to slow down, Spain started 2026 showing the same strength observed throughout 2025.
After intense activity at the end of 2025, promotional pressure eased in January as prices continued to rise. This was especially true for diesel-powered models, which saw absolute RVs increase by 1.9% compared to December and 9.7% year on year. Overall, used-car demand remains high.
HEVs were the only powertrain to not experience an increase in absolute trade RVs during January. Compared to December, this metric dropped by 0.5%.
Used hybrids in high demand
‘However, this effect is more closely linked to changes in the data basket. It should not be seen as a genuine deterioration of HEVs in the used-car market. Instead, the decline was more of a representation of new brands and models entering the mix with weaker RV performance,’ explained Ana Azofra, head of valuations and insights for Spain.
‘In fact, HEVs remained the most in-demand technology in Spain, with a positive RV outlook in the years ahead. The powertrain’s average turnover rate was just under 55 days in January, around 19 days faster than the market average,’ she stated.
Moreover, the average HEV selling pace was almost half the time it takes to sell a BEV. The all-electric technology experienced slightly higher sales and RV pressure at the start of the year.
In line with current trends, three Toyota models topped the January ranking for the fastest turnover performance. This was the Toyota Corolla, the Toyota C-HR and the Toyota Yaris.
Switzerland’s seasonal slowdown
After a lacklustre finish to 2025, used-car demand in Switzerland weakened further in January. The SVI fell sharply by 33.3% month on month, reflecting a pronounced seasonal slowdown at the start of the year.
Compared to January 2025, the SVI was 5.4% lower. This confirmed that demand remained under pressure despite some stabilisation seen late last year.
In contrast, the AMVI improved in January. Supply increased by 4.6% compared to December, while the AMVI rose by 6.1% year on year. This indicated that stock availability improved notably and was clearly above last year’s level.
‘Meanwhile, %RVs showed a modest recovery month on month. The average %RV of 36-month-old cars at 60,000km stood at 42.5%. This was up 0.1pp compared to December,’ said Madas.
‘However, compared to January 2025, %RVs were 3.4pp lower, underlining the ongoing depreciation pressure in the Swiss used car market,’ he commented.
Weaker used car pricing power
In absolute terms, trade RVs increased to CHF 26,736, rising by 1.4% month on month. Year on year, however, values were 1.1% lower, reflecting weaker pricing power despite higher list prices.
HEVs retained the most value of any powertrain in November by far at 47.1%. Then came petrol-powered cars at 44%, diesel-powered models at 42.3% and PHEVs at 40.2%. BEVs continued to be the worst-performing powertrain. Despite a slight month-on-month recovery, the powertrain retained 36.2% of its original list price.
The average number of days to sell a used car improved slightly in January. At 76.7 days, turnaround times shortened by around one day compared to December and improved significantly by nearly five days year on year.
BEVs continued to improve and sold fastest at 69.8 days, driven by bestsellers like the Polestar 2 and Tesla Model Y. This was followed by petrol-powered models at 74.9 days and HEVs at 75 days. Then came PHEVs, which took 81.8 days to leave forecourts, followed by diesel-powered models at 84.2 days.
Looking ahead, %RVs are forecast to decrease further in the coming years, but at a slower pace. By the end of 2026, %RVs are expected to fall by 1.3% compared to December 2025. A further 0.4% drop is anticipated in 2027.
UK’s deceptive residual value result
‘The average three-year-old car in the UK retained 49.9% of its original cost-new price in January 2026. This represented a slight month-on-month uplift of 0.4pp,’ highlighted Jayson Whittington, regional head of valuations for the UK.
‘However, this was the result of a new plate effect. A like-for-like comparison with January 2025 shows that values have declined by 2.8pp,’ he explained.
All powertrains recorded modest increases over December. This was except for PHEVs, which saw a marginal decline of 0.2pp. Petrol-powered cars and HEVs both rose by 0.4pp, as values of diesel-powered vehicles increased by 1pp. Meanwhile, BEVs led the market with a notable 1.9-point improvement.
Retail dynamics in January’s dashboard reflected typical seasonal trends. The average number of days it took dealers to sell a used car increased by nearly five days compared with December’s dashboard.
‘This is not unusual, as the 30 days measured in this report cover the festive period, where demand usually slows. However, a comparison with a year earlier shows that cars were sold around three days faster,’ stated Whittington.
Used car sales volumes slip
Sales volumes also slowed, with 10.7% fewer used cars sold. Diesel demand dropped by 8.1% while petrol-powered cars suffered a 11.2% fall. PHEVs saw the SVI decline by 12.6% and HEVs by 18.5%. BEVs were the only powertrain to record growth, albeit marginally, rising by 0.2%.
‘Overall, used-car supply is not expected to exceed demand throughout 2026. Consequently, RVs should remain broadly stable. A slight decline in average RVs of around 1% is forecast in December 2026 compared to 12 months prior,’ projected Whittington.
‘Meanwhile, BEVs continue to differ from the general market. Undoubtedly, used BEVs are increasing in popularity. They continue to be the fastest-selling powertrain, and quite clearly, dealers are feeling more comfortable stocking them,’ he commented.
Compared to twelve months ago, the AMVI rose by 38.8%. However, BEV RVs are expected to fall slightly more than other powertrains. By the end of 2026, a year-on-year drop of 2% is forecasted.
Car financing is key to the automotive ecosystem. It can heavily influence how cars are bought and sold, plus, it provides consumers with multiple purchasing options. But what exactly is it? Tom Hooker, Autovista24 journalist, explains how the process works from start to finish.
Finding a vehicle purchase can be difficult for buyers. Car financing allows customers to possess a vehicle without paying for its full value upfront. It converts a large, one-off purchase into a series of predictable payments. In turn, it plays a vital role in how cars are priced, sold, and managed across the automotive industry.
Car financing simultaneously prices the value of the vehicle today and its forecast residual value (RV). It also determines the cost and risk of lending money over time.
The payment method links the car itself to an agreement. This sets how the car is paid for, who takes on the financial risk and who earns money from the deal. Furthermore, it establishes when the value of the car is recovered. This could be retrieved upfront, gradually through monthly payments, or at the end of the contract.
Why does car financing exist?
For many consumers, tying up money in a depreciating asset may not be a desirable financial decision. Car financing solves this by spreading the cost over time. It aligns payments with consumer income, usage, and expected vehicle depreciation.
Meanwhile, for manufacturers and dealers, it can support consistent demand. Customers may be more willing to buy when monthly payments feel manageable, instead of paying one lump sum.
This can allow dealers to sell higher-value vehicles and avoid sales declines. It can also enable them to have more influence over what models customers choose through finance offers.
From a commercial standpoint, car financing is a framework made up of different structures that allocate risk in different ways. Some finance products prioritise ownership, while others prioritise usage. Sometimes, RV risk sits with the lender, and in other cases, it remains with the customer.
These RVs directly influence pricing competitiveness, profitability, and used-car market performance. Accurate RV forecasting can support lower monthly payments and healthier margins. Conversely, poor forecasting could lead to stock imbalances or value erosion later in the vehicle lifecycle.
Where do finance and insurance fit in?
In most retail transactions, the finance product is sold by the dealer on behalf of a finance provider. Some finance providers are captives, and others are independent finance houses. These providers supply the funding that allows dealers to present finance agreements to customers.
Once a customer has chosen a vehicle, the focus shifts to the design of the finance agreement. This turns the vehicle price into a specific, personalised offer. This stage aims to bring everything together into a single agreement. The contract must meet lender requirements and comply with regulations.
Clarity is particularly important, as this part of the process is often unfamiliar to customers.
Ultimately, car financing can influence which vehicles sell and how often customers return to dealerships. It also plays a vital role in residual value management and how risk is distributed across the automotive ecosystem. As vehicle prices rise, financing could play an increasingly important role in shaping the automotive industry.
Which powertrain helped grow the EU’s new-car market last year? How has the automotive industry reacted to a major new international trade deal? Plus, Tesla halts production of two models. Autovista24 special content editor Phil Curry analyses the biggest stories in The Automotive Update podcast.
In the latest episode, a look into which powertrains soared, and which ones stalled in the EU new-car market last year. Also, details of a major new trade deal between the EU and India. Plus, are electric vehicle (EV) sales in Spain on shaky ground?
Also in this week’s episode, Tesla plans to stop production of two models. Plus a look at Chinese carmaker Chery’s plans to manufacture vehicles in the UK.
The EU new-car market ended 2025 on a positive note, with registrations up 1.8 % year-on-year across the 27 EU member states. This result was helped by six-straight months of volume increases to close out the year.
Figures from ACEA show EVs, made up of battery-electric vehicles (BEVs) and plug-in hybrids (PHEVs), play an increasingly important role. Across the full year, almost 2.9 million plug-in models took to EU roads, claiming around 27% of the market.
BEVs alone accounted for 17.4% of total deliveries in the year. However, new petrol models still accounted for a significant portion of registrations, taking over a quarter of the whole EU new-car market.
Hybrids, made up of both full and mild hybrids, dominated the EU’s new-car market in 2025. It ended the year as the most popular choice amongst buyers for the first time.
Spain stood out with double-digit new-car growth, helped by strong sales of EVs, boosted by incentives. Germany, the EU’s largest market, also saw a modest return to growth. Conversely, France and Italy both saw declines in new-car registrations for the year.
Problems for Spain’s new EV incentive framework?
In December, the Spanish government announced the ‘PlanAuto+’, otherwise known as Auto 2030 Plan, would replace the country’s long-standing MOVES incentive scheme for EVs. The new plan was set to begin at the start of 2026, however, the funding criteria has yet to be published.
This has sparked fears a funding vacuum could be created, with potential market stagnation.
Under the new framework, subsidies were set to be managed by the central government rather than autonomous regions. The new plan is set to provide €400 million in direct purchase subsidies for EVs in 2026. This would align the annual budget with previous MOVES funding allocations.
However, according to electrive, the release is being blocked by the country’s Ministry of Economic Affairs. This aim is to follow a path similar to France, where incentives are linked to a vehicle’s total CO2 footprint.
Initially, the Auto 2030 Plan was intended to prioritise EVs manufactured in the EU without excluding other models. However, the criteria are now set to be tightened further.
EU carmakers upbeat about India trade deal
ACEA has welcomed the conclusion of negotiations for a free trade agreement between the EU and India.
According to the automotive industry body, the deal will greatly help European automobile exports enter a market of four million passenger cars circumnavigating prohibitively high import tariffs of up to 110%.
The agreement does feature important restrictions such as quota limitations and residual tariffs that will limit the potential benefit to some extent. A full assessment of the detailed terms of the deal will begin in the coming weeks.
Meanwhile, India has become a top priority for Renault. This is due to the market’s potential for growth. The carmaker also sees increasing accessibility for EU firms after the trade deal, the French carmaker’s chief growth officer has said.
Tesla to pivot towards AI and scrap two models
Tesla is planning to scrap two models as the brand looks to accelerate a charge into robotics and artificial intelligence (AI).
The announcements came as Tesla’s fourth-quarter results highlighted the damage to the carmaker across the year
The Financial Times reported that Tesla is to end production of the premium Model S and Model X in the next quarter. Plans are also afoot to convert its California factory into a manufacturing hub for its Optimus robots. The company plans to invest $2 billion (€1.7 billion), in Elon Musk’s xAI business.
Chinese EV-maker Chery to enter UK
Chinese carmaker Chery could use a UK plant, owned by JLR, to manufacture cars in the country, according to the Financial Times.
The proposals would see Chery use an existing manufacturing facility to build its EVs in Britain, according to two people familiar with the discussions.
The UK has been actively courting Chery to make its vehicles in the country for the last few years, three people close to the talks added.
Chery’s Omoda and Jaecoo models are the fastest-growing Chinese brands in the UK. The country has attracted an influx of affordable vehicles from BYD and other Chinese carmakers in recent years. Many are discouraged by higher tariffs imposed by the EU on China-built EVs.
Chery recently entered the UK market itself, with the Tiggo 7, Tiggo 8 and Tiggo 9 models.
BMW’s Neue Klasse platform is finally here, as the new iX3 goes on sale. But will the model prove to be a hit, and establish a good grounding for the much-anticipated technology? Autovista24 special content editor, Phil Curry, reviews the model alongside regional experts.
With bold new designs and cutting-edge technology, the new BMW iX3 is the first of the brand’s Neue Klasse platform. It is the first in a new family of battery-electric vehicles (BEVs) built around the philosophy, pioneering the concept on the road.
The iX3 is, therefore, one of the most important models the carmaker has ever launched.
With effectively a blank canvas, defying other BMW brand styling designs and philosophies, the new iX3 can forge its own path. The good news for the carmaker is that it seems to have succeeded, providing a good base for the Neue Klasse to grow from.
Autovista24’s latest Launch Report benchmarks the BMW iX3 against its key competitors in Austria, France, Germany and the UK. Regional experts also provide a breakdown of the car’s strengths, weaknesses, opportunities and threats.
Bold design for new iX3
BMW has kept some of its design cues from its Neue Klasse concepts on the new iX3. This includes the illuminated kidney grill, which is smaller, features more angles, but still sits proudly in the centre of the car. These angles translate across the front, with an upward sweeping grill into the LED lighting, symbolising movement.
Source: BMW
These angles continue across the car, giving it a boxy, yet dynamic look. The rear features large LED lights that echo the layout at the front. This helps provide a sense of symmetry.
The design also gives a sense of size. The iX3 looks like a large SUV, when in reality, it is similar in length to the BMW 3-series.
Technology rich
Stepping into the BMW iX3 feels like a departure from the brand’s other models. It has been completely redesigned, providing a feeling of space. The incorporated technology helps make the driving experiencve much easier.
BMW has incorporated its new Panoramic iDrive system, with a glass screen stretching below the windscreen. This projects all driver instruments, and places them in the eyeline, making it easier to focus on the information provided.
Source: BMW
This screen is also customisable, with the central and passenger side elements able to house various apps. This can also be used to extend the driver information.
Below this, a 17.9-inch infotainment screen sits with and angled look, again embracing the futuristic designs that are integral to the Neue Klasse concept. This houses many of the vehicle’s systems, with few physical controls inside. It does, however, provide a number of shortcuts to get to certain vehicle-critical areas.
The Panoramic iDrive has allowed BMW to modify the steering wheel design, and the carmaker has landed on a four-spoke look, incorporating the angles featured throughout the interior. It houses several buttons, although the placing of these does make them difficult to reach, especially for those with smaller hands.
Practically perfect
BMW has used a number of recycled and sustainable materials in the new iX3. For example, the carmaker states that 30% of the secondary raw material used for the engine compartment cover and the frunk is recycled maritime plastic. Secondary aluminium accounts for 80% of the wheel carriers and swivel bearings, as well as 70% of the cast aluminium wheels.
There are some recycled materials inside as well. Together with hard plastics around some surfaces, this belies the high-quality feel that is expected from BMW models. However, this is not to say the interior feels substandard, with a modern look and comfortable surroundings for both front and rear passengers.
Source: BMW
The flat floor helps with rear legroom, while a central passenger can be carried with ease. Thanks to the high roofline, headroom is good, even without the optional panoramic sunroof.
There are plenty of storage options inside as well. The boot space is also very generous, at 510-litres. The iX3 also features a 58-litre frunk for additional load carrying or cable storage.
Driving dynamics for new iX3
One area where BMW models traditionally stand out is their driving dynamics. This is a key test for the Neue Klasse, with a new battery and electric motor layout which could impact the feel on the road.
Thankfully, it does not. The new iX3 feels balanced on the road, even with its two-tonne weight. There is little body roll, with the suspension absorbing most of the movement. Steering is precise, and agile in urban environments.
Source: BMW
BMW has also incorporated Soft Stop, which removes the hard and sharp stopping motion when braking is applied. This works whether it is the driver, or onboard systems, that have slowed the car. The iX3 also features regenerative braking to feed energy into the battery, although this is controlled via touchscreen, with no physical buttons or paddles.
The carmaker states the new iX3 will achieve 500 miles (804km) of range, according to WLTP testing. The model comes with a 112kWh battery, powering a dual motor layout. It comes complete with an 800-volt electric system, that allows for ultra-rapid chargers up to 400kW to feed energy into the storage unit. It is also smart-energy ready, allowing it to support bi-directional charging.
Overall, the new BMW iX3 sets a good course for the Neue Klasse. It is well designed with some clever technological advances. Additionally, it provides good driver and passenger comfort, strong driving dynamics, and effortless practicality.
View the interactive dashboard, which benchmarks the BMW iX3 in Austria, France, Germany and the UK. The interactive dashboard presents new prices, forecast residual values, and SWOT (strengths, weaknesses, opportunities, and threats) analysis.
The EU’s new-car market ended 2025 with overall growth following six months of continuous improvements. But which powertrains prospered, and is this positivity cause for celebration across the whole bloc? James Roberts, Autovista24 web editor investigates.
Between January and December 2025, the EU saw 10,822,831 new cars registered across its 27 member states, according to the latest data from ACEA.
This ensured a 1.8% year-on-year increase, equating to an additional 191,485 units compared to 2024’s deliveries. However, overall volumes remained well below pre-COVID-19 pandemic levels. In total, 19 EU nations recorded improvements across the whole of 2025.
This full year of growth was helped by six months of consecutive volume increases, stretching from July to December. In the final month of 2025, a total of 963,319 new cars took to the EU’s roads. These units underpinned a 5.8% year-on-year upswing.
Varying fortunes for EU’s major markets
Of the EU’s major new-car markets, Spain consistently shone as a beacon of prosperity in 2025. Buoyed by healthy electric vehicle (EV) sales, supported by effective incentives, the country powered to double-digit growth of 12.9%.
Germany, the EU’s largest new-car market, also recorded a volume increase. In total, 2,857,591 new cars left the nation’s showrooms in 2025, providing a positive return of 1.4%. Like Spain, electrified powertrains, including battery-electric vehicles (BEVs), plug-in hybrids (PHEVs), and hybrids, made up of full and mild-hybrids, led the way.
With 1,632,152 sales, France ended the year in a distinct malaise. The EU’s second largest player by unit volume staggered to a 5% drop across the year. This included declines in all but two of the powertrain groupings defined by ACEA.
The EU’s third largest market by volume, Italy endured a stagnant year in 2025. This was reflected in ACEA’s data, as the country limped to a 2.1% decline, with 1,524,843 new cars registered. The country’s year-on-year slip came despite some promising results spurred by short but sweet, late-year EV incentives.
Notable new-car market fortunes in 2025
Of the larger EU markets, Belgium endured a disappointing year. It saw a 7.5% dive year-on-year as 414,770 new-cars were sold. This was despite a strong December, which saw a 23% improvement compared with 12 months prior, helped by double-digit BEV and PHEV sales.
Poland ended the year in a strong position, with an 8.3% uptick in new-car volumes. This was boosted by consistent triple-digit monthly BEV and PHEV unit improvements. In December alone these gains amounted to 341.6% and 260.7% respectively.
This healthy EV uptake has been supported by Poland’s NaszEauto incentives programme. It offers benefits, such as tax relief and scrappage rewards for older internal-combustion engine (ICE) cars.
Similarly, and with healthy EV sales, Portugal saw a 7.3% year-on-year volume increase, and Czechia reported a 7.4% improvement.
More generally, the largest year-on-year percentage increase came in Lithuania at 39.3%, equating to 41.974 new-cars registered. The biggest year-on-year fall was experienced in the fellow Baltic State of Estonia, which endured a 48.6% drop
Are positive EV adoption trends the reality?
In December, 320,812 new EVs, made up of BEVs and PHEVs, were registered in the EU. This was an increase of 46.1% compared to the same month in 2024 and gave the technology a 33.3% market share. This itself was an increase of 9.2 percentage points (pp).
Spanning 2025, a total of 2,896,257 new BEVs and PHEVs took to the EU’s roads. This equated to year-on-year increase of 687,231 units.
In terms of market share, this gave EVs a 26.8% hold, up 6pp from the year prior. Despite clear increases in the uptake of electrified powertrains, the figures remain lacklustre.
Looking solely at BEVs, the technology captured 17.4% of the EU new-car market in 2025 with 1,880,370 units sold. Its market share increase amounted to just 3.8pp year on year. In December alone, BEVs achieved 217,898 deliveries, equating to a jump of 51% year on year. This gave the powertrain a 22.6% hold of the overall total, up 6.7pp.
Impressively, between January and December, 22 of the 27 EU member states registered year-on-year BEV sales gains. Germany soared to a 43.2% increase, with 545,142 all-electric units reaching customers.
Meanwhile, Spain saw 101,627 BEVs join the nation’s car parc, a 77.1% uptick. Even amid a disappointing year overall, both France and Italy witnessed positive all-electric vehicle increases at 12.5% and 44.2% respectively.
Aside the aforementioned ‘big four’ new-car markets, other notable BEV adopters included Austria with a 35.9% increase, Denmark with 42%, and Poland with 161.5%.
PHEVs flatter to deceive
On the surface, PHEV sales have delivered impressive figures in the EU’s new-car market. January aside, the technology has enjoyed double-digit gains each month.
December saw 102,914 PHEVs take to EU roads, a 36.7% year-on-year boost and a 10.7% market share, the highest of the year.
Between January and December, 1,015,887 PHEVs were sold in the EU. This ensured a 254,582-unit increase, plus a 33.4% upswing, the highest of any powertrain in the bloc. However, on closer inspection, PHEV success has been built on relatively low baseline figures.
As a result, the technology ended up with the third smallest market share in 2025 at 9.4%. Worryingly this was 17.2pp and 1,864,411 units behind overall petrol registrations.
This is despite some eye-catching triple-digit year-on-year gains in some nations. This included Spain with a 111.7% increase, Poland with 119.4%, Lithuania increasing by 164%, and Latvia sealing the largest PHEV uptake at 258%. The latter two nations, however, command relatively small new-car markets.
Hybrids hold the cards
The thorny issue of EV market breakthrough in the EU is apparent when set against the established popularity of hybrid vehicles, and the enduring appeal of petrol.
Across 2025, hybrids reigned as the most popular new-car choice in the EU. Considered as a stepping-stone towards full electrification, hybrid powertrains, held 34.5% of the market. In total 3,373,352 were registered in the EU, overtaking the volume of petrol models for the first time across a full year.
In December alone, hybrids achieved 324,799 registrations, a 5.8% increase compared to the same month in 2024. Their 33.7% market share remained stable year on year.
Hybrid popularity has gone a considerable way to inflating the EU’s electrified sector. Adding these volumes to BEV and PHEV numbers gives a combined market share of 61.3% for 2025. This is an increase of 9.6pp compared with 2024.
Across the bloc, just four nations posted declines in hybrid uptake over the 12-month period. The most notable being the Netherlands with a 4.7% drop.
This enduring appeal has helped push electrified vehicle market share in the EU to a seemingly impressive 25.8pp ahead of ICE sales. However, while the trend of diminishing petrol and diesel registrations prevailed in 2025, the reality is more complex.
Petrol still popular
Despite recording double-digit year-on-year registrations declines in every month except September, new sales of petrol cars remain significant in the EU.
In terms of total registrations, petrol vehicles accounted for 26.6% of the overall new-car market in 2025. This capped the second highest portion after hybrid sales, as well as the second-best overall volume of 2,880,298 vehicles. This was, however, behind the total of hybrid models for the first time across a full year.
Petrol uptake in 2025 was shaped by a significant fall of 662,678 units year-on-year, and with it, a 6.7pp drop in market share. It also witnessed sales declines in 22 of the 27 EU member states. However, its overall share crucially remained 8.2pp ahead of BEVs, and 17.2pp ahead of PHEVs.
Coupled with this, petrol’s market share dropped by just 2.8pp between January and December. This is a potential problem for wider EU emissions targets. A continued, gradual demise of petrol, combined with low and inconsistent EV sales in 2026 could stunt wider EV uptake.
The issue could be complicated by the recent Automotive Package. Announced in December 2025, the European Commission confirmed plans for greater emissions flexibility. Central to this, carmakers will only need to cut vehicle CO2 tailpipe emissions by 90%, compared with 2021 figures.
Crucially, ICE-powered models, mild hybrids, PHEVs and extended-range electric vehicles will still be available to purchase. BEVs and hydrogen vehicles will also be available. As a result, petrol power might continue to hold significant sway in the EU’s new-car market throughout 2026, and possibly beyond.
In December, petrol saw another significant drop in registrations, with volumes down 19.2% to 216,492 units. This left the technology with a market share of 22.5%, down by 6.9pp.
Diesel dying out
2025 proved that petrol continues to enjoy a weighty influence in the EU. This, however, is increasingly not the case for diesel.
Like petrol, diesel witnessed declines in all but three EU nations in 2025. However, unlike its ICE sibling, the fuel type slid to an 8.9% market share, a fall of 3pp year on year. This was only propped up by ‘other’ powertrain registrations, including hydrogen fuel-cell electric vehicles, natural gas vehicles, liquid-petroleum gas, E85/ethanol, and other fuels.
Diesel also witnessed the biggest slide in year-on-year new-car volumes with 960,024 registrations marking out a 24.2% slide. This was not helped by a 22.4% drop in December, with 68,992 units equating to a 7.2% market share.
However, when combined with petrol volumes, unified ICE registrations held 35.5% of overall registrations in 2025. Although this is down from 45.2% in 2024, it keeps fossil-fuel-powered new-cars a sizeable 9.7pp ahead of all-electric registration totals.
While this gap narrowed from 11.9pp in January, it goes some way to emphasise the challenge that BEV and PHEV sales need to overcome to achieve parity and eventual dominance in the EU new-car market.
China’s plug-in hybrid (PHEV) market experienced its first monthly decline for some time as the sector’s slowdown continued. But are battery-electric vehicles (BEVs) also experiencing troubles? Autovista24 special content editor Phil Curry examines the figures.
November 2025 saw China’s PHEV market suffer its first decline in monthly sales since June 2020. BEV growth also slowed, although overall volumes remained high, according to the latest data from EV Volumes.
PHEV deliveries declined by 3.4% in November, with 527,751 units sold during the month. The country has experienced a dramatic slowdown in deliveries since July. Results are being compared with increased demand in 2024 and a decline in sales of popular BYD models.
Meanwhile, BEV sales increased by 11.9% in the month. With 852,945 deliveries, this was the second-highest volume of the year.
PHEV slowdown impacting results
Between January and November, PHEV deliveries grew by 15.9%. In total, 4,971,816 units were delivered in the timeframe. In the first half of 2025, PHEV sales in China increased by 35.7%. However, in the five months between July and November, deliveries only increased by 1.5%.
The PHEV market saw increased competition across the first 11 months of 2025. While BYD continued to dominate, unit totals for a number of its models were down year on year. Meanwhile, other brands, such as Galaxy, Aito and Fang Cheng Bao impressed. This indicated the potential of a more diverse market, albeit one with fewer sales.
The BEV market continued its strong growth. It recorded 7,454,241 sales equating to a rise of 33.4% in the 11-month period.
BYD leads but others impress
The BYD Qin Plus ended November as the best-selling PHEV in China. The model amassed 33,000 sales, equating to a 21.7% year-on-year rise. With a 6% market share, it increased its hold by 0.9 percentage points (pp) on November 2024.
Continuing an impressive run in only its fourth month on the market, the Fang Cheng Bao Tai 7 placed second in November. With 24,019 deliveries, it was not far behind the leading BYD model. The PHEV achieved a 4.4% market share in the month.
Taking third was the Aito M7, which bounced back with strong results in both October and November. It achieved 22,892 deliveries in the 11th month of the year, an improvement of 70.6%. This total helped the M7 secure 4.2% of total PHEV sales in the month, up by 1.7pp.
A dominant run
BYD managed to secure fourth, fifth, sixth and ninth spots to keep its top 10 domination intact. The first model in this run was new to the market. The BYD Seal 5 achieved 21,002 sales in its first month, hinting at a strong future for the model. The total was enough for a 3.8% market share.
The BYD Seal 6 followed after suffering a 49.4% drop in volumes year on year. Its 14,901-unit total was enough for a 2.7% market share, down 2.9pp. The Seal 06 has struggled in recent months when compared with its initial popularity.
Sixth went to the BYD Song Pro. With 12,973 deliveries in November, its sales fell by 37.1% compared to the volume recorded a year prior. This was enough for a 2.4% market share, dropping by 1.5pp year on year.
Galaxy’s PHEV making a mark
Chinese brand Galaxy secured seventh and eighth in November’s PHEV market. The new Galaxy A7 took the higher of the two positions in its sixth month on the market. With 12,899 units hitting Chinese roads, it held 2.4% of the market and was just 74 units away from the BYD Song Pro.
The Galaxy Starship 7, which started the year strongly, ended November in eighth. With 12,001 deliveries, the model achieved a 2.2% market share.
The last BYD in the top 10, the Song L, saw a 54.3% drop compared to the previous year, with 11,029 sales. The 2% hold of the PHEV total was down by 2.6pp, highlighting the carmakers’ uneven market performance.
Galaxy secured the final spot in the top 10 with its M9 model. It achieved 10,639 sales in its fourth month on the market, with a 1.9% share of the total.
BYD holds firm
The cumulative top 10 table for 2025 remained mostly unchanged between October and November. Despite various models struggling, BYD’s market dominance was still apparent, as it held the top five spots and seven of the 10 placings.
Continuing to lead the pack after 11 months was the BYD Qin Plus, with 251,509 units and a 5.1% market share. This was followed by the BYD Seal 06, with 190,478 deliveries and a 3.8% hold of the PHEV total.
Following this was the BYD Song Plus, with 177,377 sales and a 3.6% market share. This is thanks to a strong start to 2025, with deliveries stagnating across the year. Between August and November 2025, the model only appeared in the monthly top 10 chart once.
Fourth went to the BYD Song Pro with 166,974 units, and a 3.4% share of the PHEV total. Rounding out the top five was the BYD Qin L, with 158,380 sales and a 3.2% hold. This is despite the model not featuring in November’s top 10.
Early results matter
Another model that relying on earlier 2025 results was the Li Auto L6. After a slower October and November, its 153,840 sales kept it in sixth after 11 months of 2025. This was enough for a 3.1% market share.
Seventh went to the BYD Song L, with 133,058 sales between January and November, it took a 2.7% hold. Following it was the Aito M8 which did not feature in November’s charts. With 131,811 sales, it secured a 2.7% share of the PHEV market after 11 months of 2025.
The Galaxy Starship 7 jumped one place to ninth after November’s results with 122,156 deliveries and a 2.5% share. This was at the expense of the BYD Destroyer 05, which rounded out the top 10 thanks to 116,767 sales, and a 2.3% hold of total PHEV volumes.
Wuling comeback continues
For the third month in a row, the Wuling Mini topped the BEV monthly table, continuing a comeback after a period of slower sales. The model achieved 56,756 deliveries in November, a 63.2% year-on-year improvement. Its 6.7% market share in the month was an increase of 2.1pp.
For the first time in 2025, the Tesla Model Y experienced growth outside of an ‘end-of-quarter’ month. November saw the US car achieve 47,132 sales, a 5.7% rise. However, with increased competition, its market share declined by 0.3pp.
The Geely Geome Xingyuan ended the month in third with 42,038 deliveries. This was a rise of 109.8%, although November 2024 represented the model’s third month on sale. Its market share climbed by 2.3pp to 4.9%.
Taking fourth was the Xiaomi YU7. In its sixth month on sale, it achieved 33,729 deliveries. This meant it took a 4% share of the market.
Meanwhile, in fifth was the Tesla Model 3. With 26,013 deliveries in China, it saw a 10% decline in volumes compared to November 2024. This was enough for a 3% hold of BEV totals, a drop of 0.8pp compared to 12 months prior.
BYD ups its pace
BYD’s place in China’s BEV market continued to grow in November. The brand secured four spots in the monthly top 10, with a run between sixth and eighth. Topping the BYD model placings in sixth was the Sea Lion 6 with 22,093 sales. This was good enough for a 2.6% share of total BEV deliveries in November.
Following this was the BYD Seagull, with 21,807 deliveries in the month. This was another steep decline for the model, with volumes down by 61.2% compared to the same period in 2024. Its 2.6% share was a drop of 4.8pp, as increased internal competition played a part.
In eighth was the BYD Yuan Up, with 20,628 models taking to Chinese roads, a drop of 3.6%. Its market share fell slightly, from 2.8% in November 2024 to 2.4%.
The Wuling Bingo S continued an impressive show of form. The model entered the top 10 in October, its first month on sale in China. In November, it remained in the chart, taking ninth with 17,959 sales and a 2.1% market share.
Rounding out the top 10 was the BYD Dolphin. It saw 17,320 deliveries, a 3.8% year-on-year rise. However, with increased competition, its 2% share of the BEV total was down by 0.2pp.
Geely leads as gap closes
After 11 months of 2025, the Geely Geome Xingyuan still held the lead in the cumulative top 10 table. With 429,791 deliveries, it had a market share of 5.8%. However, the competition gained ground.
Following its impressive run of results, the Wuling Mini sat second. It recorded 404,876 units and a 5.4% share of the BEV total between January and November. This meant its gap to first place sat at 24,924 units.
In third was the Tesla Model Y, with 359,463 sales in the 11-month period. This was good enough for a 4.8% market share.
Despite its struggles, the BYD Seagull held fourth place in the cumulative table, with 304,547 deliveries in China. The model took 4.1% of the BEV market. Following in fifth was the Xiaomi SU7, despite not having appeared in monthly charts since September. With 247,041 units taking to Chinese roads, it held 3.3% of the market.
Ups and downs
The BYD Yuan Up held sixth after 11 months of 2025. It recorded 199,048 deliveries, equating to a 2.7% hold of the BEV total.
Taking seventh was the Tesla Model 3, with 172,392 sales and a 2.3% market share between January and November. This was at the cost of the Xpeng M03, which has not made a monthly top 10 chart since August. The Chinese model achieved 163,082 sales in the first 11 months of 2025, equating to a 2.2% hold of the BEV total.
Ninth went to the Geely Panda Mini, which leapt one position despite not featuring in November’s top 10. However, 11th place in November was enough to secure a boost over the 10th-place Changan Lumin. The Geely model sold 157,735 units for a 2.1% market share between January and November. Meanwhile, the Lumin saw 153,907 deliveries, and a similar 2.1% share.
Purchase incentives for new electric vehicles (EVs) have been announced in Germany. But how will they work, and what are the implications for the used-car market? Tom Hooker, Autovista24 journalist, discusses the topic with Autovista Group experts.
For the first time since December 2023, government-funded EV incentives will become available in Germany. However, unlike previous subsidies, the new scheme will be income-dependent. Battery-electric vehicles (BEVs), plug-in hybrids (PHEVs) and extended-range electric vehicles (EREVs) are eligible for the incentives.
The subsidy scheme comes as EVs recorded 49.6% registrations growth in 2025. This was a significant improvement from a 18.2% decline in 2024, the year after incentives ended.
Funding applications can be submitted through an online portal, expected to open in May 2026. Incentives can be applied retroactively from 1 January 2026. A total of €3 billion has been allocated to the scheme. The government projects this will allow for around 800,000 vehicles to receive subsidies between 2026 and 2029.
The incentive will be available for both buying and leasing applicable models, regardless of list price. All vehicles receiving the subsidy must be kept for at least 36 months.
So, how is the announcement expected to affect Germany’s automotive market? Will it impact specific segments more than others? Could it influence residual values (RVs)?
Scaling incentives
The subsidy is expected to scale with taxable household income and family size. It is also dependent on the vehicle’s powertrain.
For households with an annual income between €60,001 and €80,000, a BEV subsidy of up to €3,000 will be offered. This increases to €4,000 for households earning between €45,001 and €60,000. €5,000 will be made available for households with a yearly income of up to €45,000.
BEV buyers can also benefit from an additional subsidy worth €500 per child, up to a total of €1,000. However, these amounts are lower for PHEVs. For example, those with a household income between €60,001 and €80,000 will only receive a base subsidy worth €1,500.
Additionally, households with an income between €80,001 and €85,000 will only be allocated funds if they have at least one child. At least two children per household are required to receive subsidies if annual earnings sit between €85,001 and €90,000.
Therefore, the full €6,000 support will only be available for households below a taxable income of €45,000, or €22,500 per person for couples. On top of this, they must have two children and be purchasing a BEV.
This means that only a small share of German new‑car buyers will qualify for the maximum amount, especially in the BEV-relevant price classes.
Lower incomes not supported?
‘The new German incentive scheme is unlikely to support citizens with lower incomes,’ said Christian Schneider, director of valuations at Autovista Group.
‘Even if BEVs reach price parity with new internal-combustion engine (ICE) vehicles, prices for all powertrains have been rising significantly. This means that most people from this income class cannot afford a new vehicle,’ he explained.
‘Additionally, this new scheme is creating pressure on BEV RVs. In turn, leasing rates will also not fully benefit from this incentive.
‘There would have been smarter ways to invest this money. A more effective implementation could increase electrification, stimulate new and used-car demand, and support a wider range of citizens. For example, the funds could have been used to invest in charging infrastructure or incentivise charging prices,’ commented Schneider.
Incentives impact residual values
Autovista Group experts forecast that the strongest negative RV impact from the incentives will be faced by BEVs. This forecast is accordingly adapted to experts’ observations of new-car sales and incentives.
In December 2025, a decline of 1.9% in BEV RVs expressed as a percentage of retained list price (%RV) was predicted in 2026.
This will be driven by two effects. First, the powertrain is projected to experience pressure on prices in the short term. As new-car list prices drop due to the incentives, this can lead to lower used-car prices as the market adjusts. Second, Autovista Group experts forecast that there may be an oversupply of BEVs in the medium term.
Subsidised new registrations typically create a wave of used BEVs returning to the market simultaneously after two to four years. This can cause longer stock days and declining RVs when vehicles enter the used-car market. Some European countries with early, aggressive subsidies have already felt the impact of this trend.
Additional BEV effects
Vehicles in the €30,000 to €45,000 price band will likely be most affected by the subsidies. This price range includes many compact crossovers and other BEVs aimed at the mass market. In this bracket, Autovista Group experts project that the incentives will significantly alter price positioning.
The scheme may also only provide a limited uplift to BEV demand. This is because households earning below €45,000 are unlikely buyers of new BEVs, or indeed any new car. Buyers in this demographic would be more likely to consider smaller or inexpensive models.
Additionally, it is more likely that households in this income bracket will opt for used vehicles. Even then, they can be expected to choose older models.
The reintroduction of state support may prompt OEMs and dealers to reconsider their discounting strategies. After the previous BEV subsidies expired in December 2023, discounts increased. In turn, this could further moderate the real purchase incentive felt by buyers.
However, this may help regulate short-term pressure on BEV RVs. This is despite the powertrain likely being the most affected by the incentives.
Other powertrains influenced?
Autovista Group experts also project that PHEVs will see a slight RV impact. It will likely be more moderate than the effect on BEVs. This is because the technology will receive lower subsidies while holding a smaller market share. It also has a lower future oversupply risk than all-electric models.
The ICE market, which includes petrol and diesel models, is forecast to see a limited but varied incentive impact. In the short term, young used ICE cars may see a slight downward pressure on RVs. This will be caused by BEVs becoming temporarily more competitive.
In the medium-to-long term, structural supply shortages may appear in the used market. This could cause stable or even rising RVs for ICE models. Moreover, declining petrol and diesel registrations and tightening emissions rules could support ICE RVs structurally. Reduced model availability could also encourage this trend.
Do minimum import prices signal the end of EU tariffs for automotive imports? What is the potential impact on regional competition? Plus, which new small models are making waves in the European battery-electric vehicle (BEV) market? Autovista24 journalist Tom Hooker investigates in The Automotive Update podcast.
In this week’s episode, the EU and China appear to have made a breakthrough in trade negotiations. But what exactly are the pieces of this complex jigsaw? Could it shake up tariffs on BEVs entering the bloc? Also, a wider look at the European EV market, featuring the rise of two all-electric vehicles.
The European Commission has published guidance for companies looking to export BEVs made in China into the EU. Manufacturers can make an ‘undertaking offer’ including a limit on the price of their vehicles, known as a minimum import price.
The document states that: ‘the undertaking offer must be adequate to eliminate the injurious effects of the subsidies and provide equivalent effect to duties; be practicable; mitigate the risk of cross-compensation; and be in accordance with general policy considerations.’
In October 2024, the EU confirmed countervailing duties of up to 35.3% on BEVs made in China. Rates were set according to the findings of an investigation into state subsidisation. These tariffs were added on top of the standard 10% import duty.
The latest set of guidelines looks to offer an WTO-compatible alternative via a minimum import price. The guidelines state this must be high enough to offset any detrimental impact from subsidisation. They must also be set for each model and configuration option.
Additionally, risks including cross-compensation and broad product ranges have been highlighted as potential disruptors which could undermine undertakings. Complex sales channels will not help any undertaking.
Offers must also be technically feasible. This means the Commission should be able to verify that the exporter continues to be compliant with the undertaking. Future investments in the EU BEV-related industries will also be considered within the offer.
New models rise in European BEV standings
The latest data from EV Volumes revealed that two small all-electric models have made waves in the European EV market.
Firstly, combined deliveries of the Renault 5 and Alpine A290 topped Europe’s BEV market in November. The small BEVs have built on a consistently strong year. They took third in the cumulative BEV standings from January to November.
The second BEV to turn heads in November was a relative newcomer. The BYD Dolphin Surf made its maiden top-10 appearance in the month. With this strong performance, the hatchback has established itself as a major small BEV contender.
Other small BEVs featured in the cumulative rankings moved up the order between January and November. The Kia EV3 entered the top 10 for the first time in ninth. The Volvo EX30 and Citroën ë-C3 joined the top 20 best-selling BEV list in Europe in the same time frame.
