Europe Car Sales Rise in August 2026 as EV Demand Offsets Petrol and Diesel Decline

September 24, 2026 Avinash

Europe’s new-car market continued to grow in 2026 as stronger demand for electrified vehicles helped offset falling petrol and diesel registrations. Data from the European Automobile Manufacturers’ Association (ACEA) showed that new EU car registrations increased 5.3% in the first eight months of 2026.

Battery-electric vehicles recorded strong growth during the period, while petrol and diesel cars continued to lose market share. Reuters reported that higher registrations also helped Chinese automakers expand their presence across the European Union, Britain and the European Free Trade Association.

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EVs Continue to Gain Market Share

Battery-electric cars accounted for 21.7% of new EU car registrations through August 2026, compared with 15.8% during the same period last year. Hybrid-electric vehicles remained the most popular powertrain, taking a 36.6% market share.

Plug-in hybrid vehicles also increased their presence, accounting for 10% of new EU registrations. ACEA said demand for electrified vehicles remained strong, supported by market measures and a wider choice of models.

Petrol and diesel cars, meanwhile, continued to decline. Their combined market share fell to 29%, compared with 37.5% a year earlier. Petrol registrations dropped 18.6%, while diesel registrations also fell 18.6%. Petrol cars accounted for 21.7% of registrations, while diesel held a 7.3% share.

Chinese Automakers Expand in Europe

The changing powertrain mix is also creating more opportunities for Chinese carmakers. Reuters reported that higher registrations helped Chinese manufacturers increase their presence across European markets.

The shift comes as European buyers get more electric and hybrid models to choose from. Rising fuel costs have also added pressure on petrol and diesel demand in some markets.

For the European auto industry, the August data highlights a continuing change in consumer demand. Electrified vehicles are taking a larger share of new registrations, while conventional petrol and diesel cars continue to lose ground.