Europe's car market accelerates shift to electric and hybrid models

New registrations of passenger cars in the European Union rose 4% in the first five months of 2026, driven by strong demand for low‑emission vehicles. Hybrid models remained the most popular choice, accounting for 37.8% of all new registrations, while fully electric battery‑electric vehicles (BEVs) grew to 20% of the market, up from 15.3% a year earlier. Italy recorded the highest growth (75.7%), followed by France (55.4%) and Germany (40.9%). At the same time, registrations of gasoline‑powered cars fell 18.2% and diesel cars fell 16.6%, reducing their combined market share to under 30%.

In Greece, the government introduced sweeping tax reforms for passenger cars to encourage the uptake of hybrids and EVs. Hybrid vehicles now receive a 50% reduction in the registration tax, and zero‑emission electric cars are exempt altogether. Cars emitting up to 75 g CO₂/km qualify for a 75% discount on the registration fee, provided they were purchased between 1 November 2025 and 31 May 2026 and cost up to €40,000 before tax. The reforms also tighten enforcement against uninsured, unpaid‑tax, and uninspected vehicles, with digital tools and artificial‑intelligence‑assisted appeals to speed up processing.