EU electric car registrations jump 63% as Chinese brands gain ground

New electric car sales jumped by nearly two-thirds in August 2026 compared to their levels last year as fuel prices hit fresh records in the European Union. But German carmakers struggle to benefit from a broader recovery of the EU car market.

New electric car registrations soared in the EU in August, against a backdrop of rising fuel prices and geopolitical uncertainty.

Battery electric car registrations rose 62.7% from a year earlier, according to the European Automobile Manufacturers’ Association (ACEA). Their share of all new EU car registrations climbed from 17.8% to 27.7% over the same period.

The increase also boosted the wider market. New car sales across the 27 EU countries rose 4.5% in August from a year earlier and were up 5.3% in the first eight months of 2026 compared with the same period last year.

According to an EY analysis, two factors helped drive the growth: subsidies for electric cars and an extra working day in many countries compared with last August.

Constantin M. Gall, global aerospace, defence and mobility industry practice leader at EY, warned against seeing the increase as a sign of a wider recovery. “The upward trend in the European new car market is primarily driven by subsidies for e-mobility,” he said, adding that EV sales could fall sharply if the subsidies end.

Across the EU, plug-in hybrid registrations increased by nearly 11% compared with last August, while hybrid electric registrations rose by more than 2%. The latter category remained the most popular powertrain, accounting for about a third of new car registrations in August and 36.6% in the first eight months of 2026.

Year-to-date, battery electric and petrol cars each accounted for 21.7%.

Germany led EU electric car sales in August, with nearly 69,000 new EVs, followed by France with more than 36,000. Denmark came next with nearly 13,900, ahead of Belgium and the Netherlands. The fastest growth was in Estonia (up 278%) and Slovenia (up 266%), although those increases represented 174 and 1,651 cars respectively.

EU fuel prices hit fresh records in the week beginning 21 September, according to the European Commission. Average petrol prices reached €2.092 a litre, while diesel rose to €2.226 a litre. Both were the highest in the Commission’s series, which began in 2005. ECB experts expect diesel refining margins, rather than pump prices, to peak in October. They made that forecast before the US began examining a possible partial or full ban on diesel exports.

Chinese-owned car groups gain ground

Chinese-owned car groups are gaining a share of the EU market as European manufacturers face fierce competition, US tariffs and the cost of switching to electric vehicles.

Sales by the five Chinese-owned groups listed by ACEA rose by about 71% in August from a year earlier. Their combined share of the overall new car market climbed from 6.6% to 10.8% — roughly one in nine new cars sold in the EU. The figure includes brands with European roots, such as Volvo Cars, which ACEA counts within Geely Group.

Among the fastest-growing manufacturers were Leapmotor (up 211%), Chery (201%), BYD (129%) and Geely Group (24%). Tesla, the US carmaker, grew by 53%. These figures cover all cars sold by each manufacturer, not EVs alone.

German car groups lost ground. Combined sales by Volkswagen Group, BMW Group and Mercedes-Benz fell 1.1%, while their share of the EU market declined from 41.3% to 39.1%.

“Current subsidy measures in European countries are disproportionately benefiting Chinese manufacturers and Tesla, which offer highly competitive models — particularly in the low- and mid-price segments — along with often attractive financing terms,” Gall said. He expects Chinese manufacturers to keep gaining a share of the market, especially in lower-priced segments and southern Europe.

European carmakers may need to tighten their belts

EY warns that August’s growth may not last if subsidies end. Gall also pointed to weak economic growth, high oil prices and geopolitical uncertainty as reasons buyers may put off purchasing a new car. He urged manufacturers to prepare for more difficult years and rising price pressure.

There is another pressure on prices: a recent report covered by Euronews argued that proposed “Made in Europe” battery rules could add about €2,100 to the cost of an electric car. That could make it harder for European manufacturers to offer cheaper models, even as competition grows.

Source: www.euronews.com