Europe’s auto market rises on record electric vehicle demand

New car sales across the European Union rose sharply in March, with growth largely driven by surging demand for electric vehicles amid fuel supply disruptions linked to the ongoing conflict in the Middle East.

The European Automobile Manufacturers’ Association noted that new vehicle registrations increased by 12.5% year-on-year, exceeding 1.16 million units. Overall, the European automotive market expanded by approximately 4% in the first quarter of 2026, BFM reports.

Electric vehicles were the primary catalyst for growth. Sales of fully electric cars rose by nearly 49%, while hybrid vehicle sales increased by 20%. Over the quarter, hybrids accounted for the largest share of the market at 38.6%, overtaking petrol-powered vehicles, whose share declined to 22.6%.

Fully electric vehicles reached a 19.4% market share, while diesel vehicles continued their downward trend, falling to 7.7%.

Market performance varied significantly across Europe. The strongest growth in electric vehicle sales was recorded in Italy (+65.7%), France (+50.4%), and Germany (+41.3%), whereas Belgium and the Netherlands reported declines.

Among manufacturers, Volkswagen maintained its leading position with a 25.6% market share, followed by Stellantis and Renault. Meanwhile, China’s BYD continues to expand its presence in Europe, doubling its sales over the year, although its overall market share remains relatively modest.

By Vafa Guliyeva