The Automotive Update: A deep dive into EU new-car market fortunes

30 April 2026

What happened to passenger car and light-commercial vehicle (LCV) registrations in the EU during the first quarter of 2026? Which brands proved most popular? Tom Geggus, Autovista24 editor, reveals all in the Automotive Update podcast.

In this episode, an exploration of the latest ACEA data covering registrations of different powertrains and brands in the EU. Spanning the first quarter of 2026, Autovista24 zeroed in on volumes of new passenger cars and LCVs. Also, a look at the UK’s ageing car parc, plus an overview of which brands are seeking to set up shop in the EU. 

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

EU new-car market springs forward

According to ACEA, registrations of new passenger cars increased across the EU by 4% in the first quarter of 2026. Amid a strong March, electric vehicle (EV) growth was fostered by various incentives, purchase schemes, and tax benefits.

During the first quarter, combined battery-electric vehicle (BEV) and plug-in hybrid (PHEV) registrations increased by 31.5% year on year.

Hybrids, including full and mild versions, remained the EU’s preferred new-car powertrain. Combined, hybrids, BEVs and PHEVs accounted for over two-thirds of the total EU new-car market between January and March.

Meanwhile, deliveries of internal-combustion engine (ICE) vehicles, including petrol and diesel models, fell by 17.6% year on year.

EV adoption boosts new EU LCV growth

In the EU’s new LCV market, diesel deliveries dropped by 0.8% in the first quarter of 2026, ACEA data revealed. Despite this, with a dominant 288,484 units, diesel made up 80% of all LCV registrations up to 3.5 tonnes.  

Although diesel power remains the backbone of the EU’s new-LCV market, demand for electrified models has grown. Combined deliveries of new BEVs and PHEVs increased by 42%.

Additionally, hybrid vehicle registrations rose by 42.1%. This gave EVs a 12% share of the EU’s new LCV market, and hybrids a 3.5% slice.

EU’s leading automotive brands in 2026

Volkswagen (VW) recorded the largest unit volume of any singular brand in the EU across the first quarter of 2026. It took a 10.4% share of the EU passenger car market. However, this was down from 11.2% compared to the same point last year.

Skoda claimed the second largest market share at 6.8%, up from 6% in the first quarter of 2025. Meanwhile, Fiat gained a 0.8 percentage point (pp) increase in market share, to 3.5%.

BYD saw a significant 1.1pp increase in market share to 1.8%. It also recorded the largest growth in registrations in the first quarter, up 169.7% year on year.

Notably, around 120,000 first-quarter registrations were not tied to a specific brand. This likely reflects registrations from newer entrants, such as Xpeng, Omoda, and Jaecoo. These marques have made a strong showing in the EU recently. Overall, this group grew sales by 65.3% year-on-year, raising its market share from 2.7% to 4.3%.

Latest UK car parc make up

Vehicle volumes on the UK’s roads reached a record 42.5 million units last year, according to the SMMT. This marked a 1.4% increase, compared with 2024. There were nearly 36.7 million passenger cars, up by 1.4%, a fourth consecutive year of growth.

Fleet renewal continues to push electrification, with roughly one in 22 vehicles emitting zero emissions. In another new record, almost 1.8 million BEV passenger cars were in use, up 34.7% year on year.

UK drivers are holding on to their cars for longer amid cost-of-living pressures. The average age of cars on the country’s roads was 9.7 years in 2025, up from 9.5 in 2024.

European home for Chinese OEMs?

Several Chinese carmakers are reportedly seeking locations to manufacture vehicles in Europe. According to Reuters, Hongqi is in talks with Stellantis to use its plants in Spain to build its models. 

Meanwhile, Bloomberg reported that Dongfeng representatives have visited Stellantis plants in Spain, France, Italy and Germany. SAIC-owned MG is considering a production location in Spain, Bloomberg also revealed.

Producing models within the EU could help companies like these navigate the bloc’s import tariffs. Use of existing infrastructure could also lower manufacturing costs.