New car registrations in the European Union rose 5.7 percent in the first half of 2026, industry data showed, as demand for electric and hybrid vehicles continued to grow and Chinese automakers rapidly expanded their market presence.
A strong performance in June contributed to a positive first half of the year against a backdrop of “persistent geopolitical headwinds weighing on the outlook,” the European Automobile Manufacturers’ Association (ACEA) said in its July 23 report.
ACEA recorded 1,147,962 new registrations across the 27-nation bloc in June. Adding the UK, Iceland, Norway and Switzerland, total registrations reached 1,407,332, up 13.1 percent from June 2025.
Among the largest national markets, Germany recorded a 15.7 percent increase in total June registrations, France rose 11.4 percent, Italy gained 10.6 percent, and Spain increased 7.8 percent.
“Hybrid-electric vehicles lead as the most popular powertrain choice among buyers, while battery-electric cars reached 20.7 percent,” the trade group said. “In addition, plug-in hybrids captured 9.8 percent of the EU market.”
Petrol car registrations fell 17.2 percent in the first half of 2026 from a year earlier, with declines in every major market.
France recorded the steepest drop of 34.2 percent, followed by declines of 18.5 percent in Spain, 18.2 percent in Germany and 17.1 percent in Italy. Petrol’s share of the EU market fell to 22.2 percent from 28.4 percent a year earlier.
Diesel registrations also declined, falling 16.5 percent in the first half of the year. Diesel’s market share dropped to 7.5 percent from 9.4 percent over the same period, according to ACEA.
“The market continued to benefit from robust consumer demand for a range of electrified technologies, driven primarily by market support measures,” the group said.
Chinese Brands
The ACEA data also showed Chinese automakers expanding their presence in the European market, with BYD, Chery Automobile, SAIC Motor and Leapmotor all reporting strong year-on-year growth in registrations during the first half of 2026.
BYD’s registrations rose 168.2 percent, while Chery Automobile’s increased 268.7 percent.
SAIC Motor, the owner of the MG brand, registered a 19.1 percent increase, and Leapmotor’s surged 526.7 percent.
A BYD Sealion car at the Bangkok International Motor Show in Nonthaburi, Thailand, on March 27, 2024. Lillian Suwanrumpha/AFP via Getty Images
Steffen Michulski, regional consultant for Europe at automotive data and analytics firm JATO Dynamics, said on July 2 that Chinese manufacturers were rapidly expanding in Europe after accelerating vehicle development in their domestic market.
“What we’re witnessing is not just growth, it’s industrial acceleration on a scale Europe has never experienced before,” he said.
JATO projects Chinese brands’ registrations in Europe will exceed 1.3 million vehicles in 2026, up from just over 50,000 in 2020.
European Automakers
Volkswagen Group remained Europe’s largest automaker during the first half of 2026.
ACEA said Volkswagen Group registered nearly 1.56 million vehicles in the EU, a 2.6 percent increase from a year earlier, giving it a 26.5 percent market share.
Stellantis ranked second with 965,475 registrations, up 6 percent, while Renault Group followed with 620,250 registrations, although its sales declined 4.2 percent compared with the first half of 2025.
The Volkswagen plant in Kassel, Germany, on Oct. 29, 2024. Uwe Zucchi/dpa via AP
Michulski said that Germany and France remained difficult markets for new entrants but also represented the largest opportunities for future growth.
“The battlefield will ultimately shift to Germany and France,” he said. “That’s where scale, brand perception, and dealer networks truly matter.”
European automakers still benefit from strong brand recognition and customer trust, Michulski said, while new entrants face the challenge of building the same reputation.
He added that expanding dealer and service networks takes time and investment, while EU tariffs on Chinese-made vehicles are also affecting pricing and production plans.
The European Commission concluded its anti-subsidy investigation into battery-electric vehicles imported from China in October 2024 and imposed definitive countervailing duties for five years. The duties, which vary by manufacturer, are applied in addition to the EU’s standard 10 percent import tariff on passenger cars.
