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The automotive market in the European Union grew 4% over the first five months of 2026, driven by strong consumer demand, revised tax incentives and falling battery prices. A good moment to consider what this means for your purchasing strategy in the second half of 2026.
Fully electric reaches 20% market share
Fully electric vehicles rose from 15.3% to 20% of total volume within the European Union, representing 950,521 registrations. A clear and structural shift, including in markets that were slower to adopt electric vehicles.
Germany (+40.9%), France (+55.5%) and Italy (+75.7%) are the strongest EV growth markets over the first five months of 2026. Three of the largest automotive markets within the European Union are growing simultaneously.
| Market | EV growth Jan-May 2026 | Background |
|---|---|---|
| Germany | +40.9% | Market recovery and falling EV model prices |
| France | +55.5% | Revised business tax incentives |
| Italy | +75.7% | New national incentive scheme |
Hybrid remains the dominant choice
Hybrid electric vehicles hold a 37.8% share (1,795,071 registrations) and remain the most chosen powertrain in the European Union. Consumers uncertain about charging infrastructure choose hybrid as an intermediate step, a position that looks set to remain strong.
Plug-in hybrids grow to 9.7% (460,217 registrations). In lease markets and corporate fleets, PHEV remains a strong choice thanks to fiscal advantages.
Petrol and diesel: stable, but structurally smaller
With a 22.4% market share (1,065,071 registrations), traditional combustion engines still represent a substantial market within the European Union. The decline continues, but at a predictable and manageable pace.
What does this mean for your purchasing strategy?
The outlook for the second half of 2026 is positive. Falling battery prices are bringing electric vehicles into affordable segments, and several countries within the European Union have extended or expanded incentive schemes.
- EV and PHEV stock positions are tightening as demand increases. Buying early pays off.
- Hybrid remains the broadest and most liquid segment for European retailers.
- Germany, France and Italy offer the strongest resale opportunities in the second half of 2026.
Questions about our current stock or want to discuss how to align your purchasing strategy with these trends? Contact your account manager.
