EU car market sees record electric sales and rising Chinese automaker share

New car registrations in the European Union rose by about 4 % in the first five months of 2026, with May 2026 alone registering roughly 955 000 vehicles – a 3.2 % increase over the same month a year earlier. Battery‑electric cars grew fastest, reaching a 20 % market share (up from 15 % a year earlier) and accounting for about 203 000 registrations in May, while total electric registrations (BEV, PHEV and hybrids) now exceed two‑thirds of all new cars. Hybrid models remain the most popular powertrain, covering about 38 % of registrations. By contrast, sales of petrol and diesel cars each fell by roughly 19 % year‑on‑year.

Chinese‑owned manufacturers continued to expand their foothold. BYD, SAIC, Geely, Chery and Leapmotor together captured around 9‑10 % of the EU market, up from about 6 % the previous year. BYD alone posted a 136 % YoY increase in May, reaching a 2.1 % market share and overtaking Tesla in the region. Chery and Leapmotor posted the steepest growth rates, while Geely’s European‑made brands such as Volvo also contributed. The surge is especially pronounced in Southern and Western Europe, where lower‑priced Chinese models benefit from state EV incentives.

Overall, the EU auto market is being reshaped by strong consumer demand for electrified vehicles, supportive fiscal measures, and the rapid entry of Chinese brands, while traditional internal‑combustion sales continue to decline.