Demand for electrified vehicles continued to reshape Europe’s automotive market in May, driving overall growth even as petrol and diesel sales fell sharply, according to data released by the European Automobile Manufacturers’ Association (ACEA).
Car registrations across the European Union, Britain and the European Free Trade Association rose 3.6% year-on-year to 1,152,523 vehicles in May. Over the first five months of 2026, total registrations were up 4.5% compared with the same period a year earlier, pointing to steady recovery across the region’s auto sector.
The strongest momentum came from electrified models. Battery-electric vehicles (BEVs) led the expansion with a 39.1% increase in registrations, while plug-in hybrids rose 13.2% and hybrid electric cars climbed 8.2%. Together, these electrified categories accounted for more than two-thirds of all new vehicles registered during the month, underscoring a rapid shift in consumer preference.
ACEA said the trend reflected sustained demand supported by policy incentives. “The market continued to benefit from robust consumer demand for a range of electrified technologies across key European markets, sustained by new and revised tax benefits and incentive schemes,” the association noted.
By contrast, traditional combustion engine vehicles continued to lose ground. Petrol and diesel registrations both fell by around 19%, highlighting the accelerating decline of internal combustion technology in the region’s new car market.
The transition is also reshaping competition among manufacturers. Established European automakers struggled to keep pace, with registrations for Renault, Stellantis and Volkswagen slipping between 1% and 3% in May. The declines reflect intensifying competition as the industry pivots toward electric mobility.
Chinese manufacturers continued to expand their presence at a rapid pace. Leapmotor recorded a 465.1% surge in registrations, while BYD and Chery posted gains of 136.6% and 244.1%, respectively. Geely and SAIC also reported growth of 12.6% and 13.9%, further strengthening China’s position in the European market.
Tesla also extended its recovery streak, with registrations jumping 107.9% to 28,610 units in May. The increase marks the company’s fourth consecutive month of growth following a prolonged downturn over the past year.
The latest figures point to a European auto market increasingly defined by electrification, shifting consumer demand, and intensifying global competition as traditional and emerging players vie for position in a rapidly evolving industry.
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