Europe’s new-car market continued moving towards electrified powertrains during the first seven months of 2026. Battery-electric vehicles gained substantial ground, hybrids strengthened their position and conventional combustion-engine cars became a smaller part of overall registrations.

The latest European Car Market Monitor from the International Council on Clean Transportation shows that the transition is progressing unevenly across countries and manufacturers.

Battery-Electric Cars Reach 22%

Battery-electric vehicles accounted for 24% of new European registrations in July 2026. Across January to July, their average market share reached 22%, five percentage points higher than during the same period in 2025 and three points above the 2025 full-year average.

Plug-in hybrids also expanded, although more slowly, reaching a 10% share over the first seven months, one percentage point higher year on year.

Full hybrids represented 14% of registrations, while mild hybrids reached 24%. Both gained one percentage point compared with January–July 2025

Conventional combustion-engine cars moved in the opposite direction. Their share dropped nine percentage points to 29%, reflecting the growing importance of electrified alternatives.

France And Germany Accelerate

Germany and France, Europe’s two largest car markets, recorded some of the strongest gains in battery-electric adoption.

BEVs represented 26% of new registrations in Germany between January and July, an increase of eight percentage points from the same period of 2025. France reached 29%, up 11 points.

Progress was more modest in southern Europe. Italy’s BEV share reached 8%, three points higher than a year earlier, while Spain climbed two points to 10%. Poland remained unchanged at 5%.

Looking at total new-car registrations across Europe’s ten largest markets, Poland recorded the strongest growth at 12%, followed by France at 9%. Belgium fell 7%, Czechia declined 3% and the Netherlands was down 2%.

Nordic Countries Stay Ahead

Northern Europe remained far ahead in battery-electric adoption. Norway recorded a 98% BEV share, while Denmark reached 80%. Finland stood at 49%, Iceland at 44% and Sweden at 42%, although the Swedish figures covered January through May.

The Netherlands reached 38%, Belgium 37% and Luxembourg 30%. France followed at 29%, while Germany stood at 26%. Ireland and Austria both reached 25%.

Denmark recorded the largest year-on-year increase, with its battery-electric share rising by 16 percentage points.

BMW Leads Major Groups

Among Europe’s seven largest automotive groups, BMW had the highest battery-electric share in January–July at 29%.

Mercedes-Benz increased its BEV share by nine percentage points compared with the same period last year. Hyundai and Renault each gained seven points, while Toyota more than doubled its share from 4% to 10%.

In July alone, the Porsche manufacturer pool had the highest BEV share at 70%, followed by BYD at 37%. Kia reached 35%, while Mercedes-Benz and BMW each recorded 34%.

CO2 Performance Nears Targets

Average manufacturer emissions reached 93g CO2/km in January–July 2026 before compliance credits were applied. Across the longer period from January 2025 to July 2026, adjusted emissions averaged around 94g/km, about one gram above the average 2025–2027 manufacturer target cited by the ICCT.

EU rules now allow manufacturers to assess compliance across the combined 2025–2027 period rather than requiring each individual year to meet the target independently. The European Commission confirms that this flexibility was formally adopted in 2025.

The BYD, Tesla, Nissan, Mercedes-Benz, Toyota, BMW, Kia and Porsche pools were below their projected targets, while Renault was on target. Volkswagen, which represented 26% of registrations, remained seven grams per kilometre above its target.

Global EV Growth Is Uneven

Europe is not the only market experiencing major change. China’s battery-electric share reached 35% in the first half of 2026. India climbed to 5%, while the United States slipped from 8% to 6%. The UK reached approximately 25%.

Thailand and Vietnam stood out with BEV shares of around 45%, up from roughly 10% in 2023. Indonesia reached 24%, while Brazil doubled its share to 8%.

Europe’s figures show that electrification is advancing, but at very different speeds. Battery-electric cars are taking a larger share of registrations, hybrids remain important, and traditional combustion models continue to lose ground across much of the continent.