Not every automotive recall requires a workshop visit. Some fixes can now be delivered over the air while the vehicle is parked. So, what actually is a recall, and why do they happen? Autovista24 journalist Tom Hooker investigates.
An automotive recall is a formal safety action. It is used when a vehicle, a component, or a piece of software, is found to create an unacceptable safety risk. A recall may also be issued if a vehicle does not comply with safety requirements.
For owners, the key point is straightforward. The manufacturer must provide a remedy, which is normally free of charge. That fix might be a physical repair, a replacement part, or a software update.
Why do recalls happen?
Recalls usually arise due to evidence from the field. This includes customer complaints, internal testing or an investigation by a safety authority. Causes can range from defective parts fitted during production to a design weakness that only appears after a certain amount of mileage.
Recall terminology can also vary by region. Some markets separate safety recalls from voluntary service campaigns. These are fixes that improve a vehicle’s quality or compliance but are not classed as an immediate safety risk.
The recall process is relatively similar across the world. First, manufacturers identify the affected vehicles. This is often done using the vehicle identification number (VIN). Production dates and factory records may also be used.
Then, carmakers will notify the relevant transport authority before contacting the vehicle’s owner with instructions.
A recall involves many moving parts. Dealers and manufacturers must manage component supply, workshop capacity, customer communication, and completion rates.
Dealership recalls and virtual recalls
Traditionally, recalls have been carried out in a workshop. In this procedure, an appointment is booked, the repair is carried out, and the job is logged as completed.
However, as vehicles become more software-defined, the shape of a recall is evolving, from workshop fixes to remote updates. These are known as over-the-air (OTA) updates, and are delivered wirelessly, without any physical connection to the vehicle. This can reduce inconvenience for drivers.
If the defect is purely software-based, the remedy can sometimes be deployed remotely. In some cases, an OTA update can be offered alongside dealer repair for vehicles that also need hardware work.
Commercial recall importance
For consumers, recalls are about safety, time, and trust. However, for businesses, it is a matter of time and resources. Fleets and rental operators may need to pull vehicles from service. Meanwhile, dealers need to absorb extra workshop demand, sometimes alongside parts constraints.
For manufacturers, recalls not only create direct costs but can also cause undesirable longer-term effects. This includes reputational damage and weaker used-car confidence. In turn, this can put pressure on residual values.
So, a recall is not just a repair notice. It is a structured intervention intended to improve vehicle safety and prevent breakdowns or accidents before they happen.
The balance of physical and virtual recalls may continue to shift in the years ahead. Yet the objective remains the same. Identify the risk, notify the customer, and remove the hazard.
For the second consecutive year, the EU saw a fall in new-car registrations during January. But is this trend a reason for alarm in 2026? Plus, is the tide turning away from hybrid dominance towards a more electrified landscape? James Roberts, Autovista24 web editor, assesses the latest data.
The EU’s new-car market kicked off 2026 with a year-on-year decline in January. A total of 799,624 new cars were registered across the 27 member states, according to Autovista24 calculations of ACEA data.
This marked a 3.9% year-on-year decline, the second consecutive negative start to a year. In total, just 10 EU member states saw year-on-year increases in new-car registrations during January. The result brought an end to six months of consecutive growth, with the EU’s largest markets witnessing varying fortunes.
Germany endured a troubled start to 2026 with a 6.6% slide in new-car deliveries. With 193,981 units registered, the EU’s largest market saw falls in all but two powertrain variants. Following a disappointing 2025, France followed suit with a 6.6% drop and 107,157 newly registered vehicles.
Meanwhile, Spain eked out a 1.1% increase in volumes, with new electric vehicle (EV) incentives yet to find their feet. Italy fared the best of the ‘big four’ EU markets. It recorded a 6.2% volume increase, with 141,993 new cars taking to the country’s roads. This was boosted by a significant uptake in plug-in hybrid (PHEV) demand.
Hybrid popularity reaching a peak?
In 2025, hybrids, including both mild and full-hybrid versions, were the most popular new powertrain for drivers in the EU. January 2026 provided a continuation of the trend. However, this could change as the year develops.
In total, 308,364 new hybrids took to EU roads in January. This equated to an upswing of 6.2% and 18,024 additional units. This strong start to the year ensured a new 38.6% market share high, up 3.7 percentage points (pp).
Amid its overall January decline, Germany saw hybrid volumes drop by 1.8%. In total, 58,206 new models featured the technology in the month. This followed on from marginal growth in December. As the EU’s biggest new-car market, Germany sets the stage in terms of powertrain demand. The technology may have reached a natural peak in the country, as the tide shifts towards EV sales.
For France, January brought stagnant hybrid demand, with a 0.1% year-on-year improvement. Conversely, Spain witnessed a 9% increase, while 74,422 new hybrids joined Italy’s car parc, capping a 24.9% boost.
In total, 15 of the EU’s 27 nations recorded year-on-year hybrid gains. Following a year in the doldrums, Estonia registered the highest upswing at 158.3%. Bulgaria also saw triple-digit hybrid lift of 140%. Austria, Czechia, the Netherlands and Portugal all witnessed hybrid growth.
However, Poland, the EU’s fifth-largest market in terms of overall volumes, saw a 17.2% year-on-year decline in hybrid registrations. Meanwhile, the country continued a trend of strong EV adoption, suggesting a shift towards fully-electric cars.
Solid start to 2026 for EVs
EV uptake, made up of battery-electric vehicles (BEVs) and PHEVs, appeared strong across the EU in January. However, this was measured against a comparatively low baseline 12 months ago. The plug-in share equated to 29.1% in January as a total of 232,971 plug-in models made their way to customers. This was up 6.9pp from 12 months prior.
Breaking down the powertrains, 154,230 new BEVs made their way to EU customers in January, up 24.2%. This ensured a market share of 19.3%, up 4.4pp year on year. Meanwhile, PHEVs accounted for 9.8% of new-car volumes with 78,741 vehicles registered. This equated to a 2.4pp uplift. Volumes increased by 28.7%, the fastest growing of all powertrains.
Breaking down EU EV uptake
The EU’s largest markets underwent mixed fortunes in January when it came to new BEV adoption.
Germany returned buoyant all-electric vehicle numbers in the month. In total, 42,692 BEVs were registered, a 23.8% year-on-year increase. This was coupled with a healthy 23% lift to PHEV figures, amounting to 21,790 units. This came as a new domestic incentive framework, retroactively available from 1 January, was rolled out.
France saw a 52.1% increase in BEV registrations. In total, 30,307 battery-powered models reached customers. This was assisted by a combination of tax reduction, infrastructure support and regulatory incentives. However, this comes amid wider market declines.
Fired by incentives, Spain proved a consistent BEV powerhouse in 2025. Despite measures changing at the end of last year, January was a good month. In total, 6,472 new BEVs meant a 29.1% delivery increase. Meanwhile, PHEV demand soared by 66.7% year on year, amounting to 8,740 units. Domestic industry bodies have urged for clarity regarding incentives, hoping to ensure the country’s electrification can continue in 2026.
Poland continued its 2025 trend. January saw year-on-year BEV increases of 216.1%, the highest figure in the EU. This was achieved with 3,544 units. Coupled with this, Polish PHEV registrations jumped by 95.7%. Demand for these powertrains has been facilitated by the country’s NaszEauto incentives programme, which was launched in 2024.
PHEV power proving important
Of the EU’s major new-car market players, Italy saw PHEV popularity come to the fore in January. In total, 11,638 new models made their way to customers, up 134.2% year on year. Industry body UNREA highlighted an expanded range of models and an attractive tax framework as motivation for this healthy business.
The BEV market saw a notable decline in the Netherlands, down 35.4% fall in January. However, the reverse was true for PHEVs. In total, 8,025 new plug-in hybrids left Dutch forecourts, ensuring a year-on-year boost of 49.1%.
Austria also witnessed double-digit increases in both BEV and PHEV registrations in January, with 23% and 66.7% growth, respectively. This came despite there being no EV purchase subsidies in the country, as written by the European Alternative Fuel Observatory.
Instead, a mixture of tax incentives and cash subsidies, plus a favourable approach to EV fleet support, helped boost numbers. Plus, a new electric mobility information platform called eMove Austria was launched in January.
Despite a 4.2% drop in BEV volumes, Czechia enjoyed notable PHEV gains. In total, the country saw 850 units registered, a 32.6% uplift.
ICE drifts into 2026
It is no small surprise that January saw internal-combustion engine (ICE) registrations continue to fall across the EU. Amid legislative changes to CO₂ targets, both new petrol and diesel interest have petered out across all major markets.
Combined petrol and diesel registrations reached 240,539 units, signalling a 26.7% year-on-year volume decline. Coupled with this, the powertrain group captured 30.1% of the EU new-car market, a 9.4pp dive.
This dwindling fuel type group remains a relatively strong market player. In January, ICE registrations exceeded combined BEV and PHEV volumes by just 7,568 units. The plug-in market share trailed petrol and diesel by just 1pp. With the narrowing gap, the coming months could see the EV market overtake ICE, signalling a shift in powertrain dynamics.
In terms of new petrol registrations, 175,989 new vehicles took to EU roads in the opening month of 2026. This marked a 28.2% drop. Market share came out to 22%, down 7.5pp on 12 months prior. Five nations recorded petrol volume increases. Austria saw a 3.3% lift, while Estonia saw an eye-catching 248.8% surge. Yet this amounted to just 286 units.
Diesel declined in 23 of the 27 EU new-car markets. January saw 64,550 new vehicles registered across the bloc. This marked a 22.3% year-on-year fall. Once again, Estonia saw triple-digit increases at 431.4%, as 186 new diesels found their way to customers.
Which new battery-electric vehicle (BEV) and plug-in hybrid (PHEV) models recorded the greatest sales volumes in 2025? How did regional dynamics dictate the best-seller tables? Autovista24 editor Tom Geggus unpacks the data.
Following two years of global new PHEV sales growth outpacing all-electric cars, 2025 saw BEVs surge ahead. With 13,697,372 units taking to roads around the world, the powertrain recorded year-on-year delivery growth of 26.7%. This is according to the latest data from EV Volumes.
Meanwhile, PHEV deliveries slowed to an increase of 11.1%, down significantly from the 55.2% acceleration in 2024. Last year saw 7,217,499 plug-in hybrids making their way to customers.
Much of this came down to China’s slowing PHEV market. The country was responsible for 70.3% of the powertrain’s sales, meaning declining results impacted the global market. In contrast, Spain saw triple-digit sales growth for the technology, but it made up a far smaller global share of just 1.8%.
Between the two, the US made up 4.6% of the world’s PHEV market, with sales up 4.8%. Then came Germany with 62.5% growth and a 4.3% share. The UK had the fourth largest PHEV market, accounting for 3.1% of sales globally. The country saw deliveries increase by 34.5%.
The slowdown was highlighted by an increase in December’s global volumes of just 0.9%, as 758,073 sales were recorded.
BEVs bounce ahead
In contrast, China saw its BEV market pick up speed last year, with growth reaching 27.6%. Despite a smaller portion of global sales compared to PHEVs, it still dominated global deliveries at 59.1%.
This was still far ahead of the next biggest market, the US, which saw sales fall by 3.9%. In total, 8.7% of all-electric car sales took place in the country.
Germany followed with 4% of the global BEV market as sales increased by 43%. The UK was 0.5 percentage points (pp) behind with a 3.5% share as sales increased by 24.2%. France saw all-electric sales increase by 13.6% as it made up 2.5% of all-electric deliveries.
In December, BEVs managed a global increase of 12.4%, as 1,376,827 units made their way to customers.
Best-selling BEV: Tesla Model Y
The Tesla Model Y was the world’s best-selling BEV of 2025. With new variants and designs launched, it was the only electric vehicle (EV) to exceed the one-million delivery mark. In total, 1,085,521 units made their way to customers as it retained the market lead it has held since 2022.
However, within an increasingly competitive space, the model saw its sales fall by 7.5% year on year. This meant its market share shrank from 10.9% in 2024 to 7.9% last year.
Most of the Model Y’s sales in 2025 took place in China. Given the country’s greater EV market development, this should come as little surprise. However, the US was only 9.2pp behind, with 30% of the model’s overall sales taking place there.
Behind these two formidable markets came South Korea, Turkey and Canada, representing 4.6%, 2.9% and 2.6% of the BEV’s sales.
The Tesla Model Y was helped by a strong December. 129,650 units were sold in the month, boosted by its traditional quarterly reporting period. This was, however, 4.3% down year on year.
Tesla takes second as China dominates
The second-best-selling BEV last year had four things in common with the market leader. It was another Tesla, it saw updates in 2025, it retained its position from 2022 onwards, and its deliveries fell.
The Tesla Model 3 saw sales decline by 5.5% to 499,685 units in 2025. This meant its market share dropped by 1.3pp to 3.6%.
The Model 3 saw 40.1% of its sales take place in China. But once again, the US was only 9.1pp behind at 31%. The all-electric sedan saw positive uptake in the UK, with 3.1% of its deliveries occurring in the market.
In December, the Model 3 placed second thanks to Tesla’s quarterly reporting. It achieved 55,198 sales, a 5.6% dip year on year.
The Geely Geome Xingyuan, also known as the EX2 in some locations, ended the year in third. A relative newcomer in the BEV market, it first recorded sales in September 2024. It saw a marked increase of 800% to 473,948 units as its market share jumped by 3pp to 3.5%.
While the Tesla Model Y and Model 3 each recorded sales across more than 75 markets, the Xingyuan contrasted heavily. It only posted deliveries in four markets, China, Brazil, Mauritius and Colombia.
However, the latter three markets noted relatively minimal sales compared to China. It saw 99.5% if its sales take place domestically. The model is scheduled to enter major European markets in 2026.
The Geome Xingyuan saw 43,185 sales in December alone, as it increased volumes by 161.9% year on year. This capped an impressive first full year on sale for the Chinese BEV.
Eight Chinese BEVs in top 10
The Xingyuan began an avalanche of BEVs from Chinese carmakers. Eight of the top 10 in the best-sellers list came from the country.
The Wuling Mini was fourth as it saw sales climb by 65.3% to 431,779 units. This gave it a market share of 3.2%, up from 2.4% in 2024. The BYD Seagull, also known as the Dolphin Surf in some markets, took fifth. However, its sales fell by 13.3% to 409,550 units. This took its share down by 1.4pp to 3%.
The Xiaomi SU7 came sixth as its market share increased by 0.6pp to 1.9%. This was thanks to year-on-year sales growth of 85.3%, reaching 258,824 units.
With a similar 84.2% rate of growth, the BYD Yuan Up, also known as the Atto 2, recorded 252,441 deliveries. Its share climbed by 0.5pp to 1.8%.
The BYD Dolphin saw a 4.6% rise in sales to 227,352 units. Even though this was a better volume than in 2024, greater competition meant the BEV saw its market share shrink. It accounted for 1.7% of all BEV deliveries, down from 2%.
The BYD Yuan Plus, also known as the Atto 3, saw sales decline by 33.7% to 225,133 units. This resulted in a 1.5pp decline in share to 1.6%. In 10th, the Xpeng M03 enjoyed a 264.7% sales increase to 177,150 units. Its grip on the market increased to 1.3% from 0.4% in 2024.
Best-selling PHEV: BYD Song Plus
While BYD was able to capture four of the top-10 best-selling BEV positions, it excelled in the PHEV market. In total, it claimed seven of the best-selling slots in the year, including first place.
The best-selling PHEV in 2025 was the BYD Song Plus, known in some markets as the Seal U. This extended its winning streak, after it claimed the title in 2024. Last year it recorded 328,094 sales, taking 4.5% of the market.
However, like the majority of BYD’s PHEVs in the top 10, it saw its deliveries fall compared with 2024. Its volumes declined by 9.8%, while its share was eroded by 1.1pp to 4.5%.
At 50.8%, the Song Plus saw over half of its sales take place in China. Single-digit shares were recorded in 49 other markets. This included Turkey, Mexico, the UK and Brazil, accounting for 7.8%, 7.5%, 6.3% and 5.5% of its sales respectively.
The end-of-year success came despite a fall in monthly performance. It ended December in fifth, with 22,226 units delivered, a 49.1% year-on-year decline.
Qin Plus takes second
In comparison, the Qin Plus was the second-most popular PHEV of 2025, but only recorded sales in 10 countries. China accounted for the vast majority of its deliveries at 96.2%. Globally, its volumes declined by 15.9% to 292,572 units. This meant it took a 4.1% market share, down 1.3pp.
The model still topped the PHEV chart in December, thanks to 40,818 deliveries, a 30.1% increase compared to the same month in 2024.
The BYD Song Pro took a marginally larger fall. Its share stumbled by 1.4pp to 3.2% as its sales decreased by 22% to 231,143 units. While China accounted for 78.2% of its sales, Brazil managed 10.5%, followed by Mexico at 4%. Highlighting the Song Pro’s struggles, it ended December in fourth, with its 24,070 sales down by 26.4%.
The BYD Seal 6 took fourth in the global PHEV top 10 at the end of 2025. Its sales increase by 3.1% to 206,136 units. This made it one of two BYD models in the top 10 to achieve this positivity. However, this was not enough to stop its market share from slipping. It accounted for 2.9% of all PHEV sales last year, down from 3.1%.
The first non-BYD model in the top 10 was the Li Auto L6 in fifth. It saw sales drop by 13.2% to 166,965, taking a 2.3% share, down 0.7pp. The BYD Qin L took sixth with a 2.3% grasp on the market. This reflected a drop of 1.2pp as sales slowed by 29.1% to 162,817 units.
The BYD Destroyer 05 took seventh in 2025 even as its deliveries dropped by 32.7% to 150,677 units. Its share also took a downturn, hitting 2.1% from 3.4% in 2024.
Share increases possible
The top seven highest-performing PHEVs in the world all saw their grip on the market weaken in 2025. However, this was not the case throughout the top 10.
After first recording sales in April 2025, the Aito M8 claimed a share of 2.1% with 148,934 deliveries. The BYD Song L came ninth, as its share increased to 2% from 1.9% in 2024. The model’s volumes increased by 16.8% to 142,301 units, the only other BYD to achieve this in 2025’s top 10.
The Galaxy Starship 7, also known as the Starray, first recorded sales in November 2024. Across 2025, its deliveries soared by 512.8% to 126,461 units. This meant its market share climbed by 1.5pp to 1.8%.
While the global PHEV market slowed in December, two models saw impressive performances in the last month of the year. The Fang Cheng Bao Tai 7 ended the month second in the PHEV table. It saw 34,086 sales, accounting for 4.5% of the global total. Meanwhile, the Aito M7 placed third with 26,468 deliveries. This was a 97.3% year-on-year improvement, the best result in the top 10. This gave it a 3.5% market share, up from 1.8% recorded a year prior.
Following a listless 2025, the Italian new-car market enjoyed a promising start to 2026. Year-on-year registrations were up in January, while Chinese brands continued to break through. But which powertrains and carmakers boosted results? James Roberts, Autovista24 web editor, finds out.
The Italian new-car market kicked off 2026 with year-on-year growth. In January, 141,993 new vehicles were registered in the country, according to Autovista24 calculations of ANFIA data. This ensured a 6.2% upswing, consisting of 8,352 units.
January marked a second consecutive month of registration improvements following a year peppered with monthly declines. It also proved to be the highest volume total since March 2025. Despite this, automotive industry body UNRAE highlighted that overall figures remain below pre-COVID-19 levels.
‘After the difficulties of 2025, this first positive result fuels the hope that the current year will show a first gradual, but significant, recovery of the market, [and is] also thanks to the expected launch of new models,’ stated Roberto Vavassori, president of ANFIA.
January also featured impressive returns from Chinese electric vehicle (EV) manufacturers. This means 2026 could signal an Italian breakthrough for numerous new market entrants.
PHEVs and BEVs provide new-car push
New-car sales were undoubtedly buoyed by plug-in hybrid vehicle (PHEV) demand in January. In total, 11,638 PHEVs left Italy’s forecourts, 6,669 more than one year prior, which signalled a significant 134.2% increase in volume.
This new high monthly watermark for the powertrain helped establish an 8.2% market share, up 4.5 percentage points (pp) year on year. UNREA attribute the PHEV appeal to an expanding range of models, coupled with new provisions on company cars and fleets.
Additional factors include an attractive tax framework. Since January 2025, PHEV drivers have been granted a 20% road tax deduction on relevant vehicles. These ‘fringe benefits’ can be applied to company-provided vehicles, making them an attractive option.
Italian BEV incentive wake receding?
Battery-electric vehicle (BEV) sales remained healthy in Italy during January. The month saw 9,423 new all-electric vehicles take to Italy’s roads. This meant a 40.7% surge in demand, 2,725 more units than in January 2025. This volume gave BEVs a 6.6% market share, up 1.6pp from one year prior.
While the year-on-year gains in January were eclipsed by triple-digit gains in November and December, the figure remains impressive. The final two months of 2025 were boosted by EV incentives announced in late October.
Although fleeting and exhausted in a short time, they did have the desired impact of elevating BEV demand. A residual effect seems to have dripped into 2026, but how long can this momentum continue without meaningful support?
21,061 new PHEVs and BEVs joined Italy’s car parc in January, carving out a 14.8% market share, 6.1pp up on 12 months ago. Coupled with an 80.5% year-on-year unit increase, this has helped bolster a double-digit hold in the overall market.
Although impressive, the combination of PHEV and BEV registrations across the month remains considerably below internal-combustion engine (ICE) figures. It was also down 5.5pp from December’s record 20.3% market share, and closer to standard monthly figures seen throughout 2025.
Automotive package clarity required
As the Italian new-car market progresses in 2026, the EU’s proposed changes to emissions targets could influence electrification.
In December 2025, the European Commission rolled out the automotive package. From 2035 onwards, carmakers may only need to cut vehicle CO2 tailpipe emissions by 90%, compared with 2021 figures. This means new, more polluting vehicles could be sold.
For ANFIA president Vavassori, clarity on this issue is crucial for domestic policy regarding Italy’s EV fortunes moving forward.
‘With reference to the EU’s automotive package, we have instead strongly emphasised how important it is that the revision of the regulation on CO2 emissions of light vehicles takes a clear and pragmatic direction quickly, in order to correctly orient consumers,’ affirmed Vavassori.
Further ripples of uncertainty have been caused by manufacturer Stellantis. The carmaker confirmed charges of €22.2 billion relating to reworking its EV product strategy. It is also set to sell its stake in its battery joint venture, NextStar Energy, to LG Energy Solution. This all indicates a significant EV shift for the carmaker.
Additionally, Emanuele Cappellano, head of Stellantis Europe, recently provided a stark assessment of the robustness of natural continent-wide BEV demand.
‘In Europe, profit margins are shrinking and are on the verge of becoming negative. This is a major concern for us today. There is no natural demand for electric vehicles,’ he said, according to Car Dealer. ‘Demand only arises when there are subsidies in various countries or when car manufacturers reduce prices by burning cash,’ he added.
This comes as Stellantis doubled down on plans to increase production at several key Italian plants this year, as reported by Reuters. This follows on from a production decline last year, which saw passenger cars down by a quarter year-on-year. This is the lowest level since 1954, according to the FIM Cisl trade union, Reuters reported.
Chinese models move into the Italian mainstream
January saw BYD and Chery-owned Omoda and Jaecoo marques increase their market presence in Italy. This trio of relative newcomers enjoyed considerable success.
According to ANFIA data, BYD sold 3,553 units in January, up from 827 one year ago. This marked out a 329.6% volume increase. This meant it outsold carmakers like Cupra, Mazda and Tesla in January, suggesting 2026 could be a breakthrough year.
Combined Omoda and Jaecoo sales hit 2,496 units, etching a 357.1% year-on-year boost. The two brands have proved popular amid the demand for affordable PHEVs.
Stellantis accounted for most new-car volumes in January with 45,177 registrations. This ensured a 31.8% market share and a 8.7% year-on-year registration gain. Fiat led the way with 19,162 vehicles taking to Italy’s roads, up 20.5% on January 2025.
The Fiat Panda emerged as the best-selling new car in January with 13,300 registrations. Fiat’s overall lead was also helped by the Fiat Grande Panda, with its dual strategy as both a BEV and a mild hybrid. It accounted for 3,297 units.
Volkswagen Group (VW) followed Stellantis with 21,685 sales, a 4% year-on-year boost. While Cupra thrived with 1,712 units and a 51.8% upswing, SEAT endured significant annual declines, falling 35.1%. However, the most notable fall in January belonged to Dacia. The Renault Group brand saw year-on-year sales slump 40.8% to just 6,791 units in the month.
Hybrid momentum continuing?
The Europe-wide trend of new hybrid vehicle dominance, including full and mild versions, showed no signs of slowing in January.
In total, 74,422 new hybrid variants were registered in January, up 24.9% year-on-year in terms of volumes. This made up 52.4% of the monthly Italian new-car market, a 7.8pp improvement. It also signalled a 14,860 year-on-year unit increase.
Combining hybrid volumes with PHEV and BEV numbers saw the electrified market share reach 67.2% in January. With a total of 95,483, this underlined a new record as well as the largest ever share of the market, up from December’s previous peak of 62.9%.
In the coming months, should uncertainty continue around the automotive package and further EV incentives, this trend could continue. Alternatively, the hybrid dominance of the Italian new-car market could increase as customers remain uncertain of BEVs.
Is 2026 the year ICE finally melts away in Italy?
Despite sustained double-digit declines for combined petrol and diesel registrations across 2025, ICE popularity remained a stubborn fixture in Italy’s new-car market. However, could the dial finally be shifting?
ICE numbers slid to a fourth-lowest total in 13 months. Combined, 37,371 new petrol and diesel vehicles took to Italian roads in the first month of 2026. This equated to a fall of 11,215 units and a near 10pp drop in share to a low of 26.3%.
Following a year of declines, the Italian new-car market is shaping up to be a vibrant automotive crucible in 2026. The key questions are whether the ICE slide continues, will Italy avoid mixed EV signals and navigate choppy waters?
The German new-car market declined for the first time in seven months in January, fuelled by internal-combustion engine (ICE) losses. However, new arrivals were still able to record surging volumes. Autovista24 journalist Tom Hooker unpacks the figures.
Germany’s new-car market struggled in January, with 193,981 registrations representing a 6.6% decline year on year. This was driven by a 14.4% slump in private deliveries, according to the KBA. Conversely, the commercial market grew by 2.1%.
In a familiar trend, electric vehicles (EVs), made up of battery-electric vehicles (BEVs) and plug-in hybrids (PHEVs), provided a boost. However, ICE models placed downward pressure on volumes.
In this case, the force of petrol and diesel declines prevailed. A stagnating hybrid market, combining full and mild hybrids, was unable to provide any assistance. Moreover, while EV growth remained strong, it did slow significantly.
External factors may have also influenced Germany’s sluggish start to the year. The Federal Government adjusted its GDP growth forecast downwards at the end of January, from 1.3% to 1%.
Private consumption in Germany is projected to rise by just 0.8% in 2026 according to the Annual Economic Report. On top of this, unemployment figures reached a 12-year high in the country during January, Reuters highlighted.
So, as economic growth and labour market momentum slow, this could cause delays in new car purchases. It may also push more drivers towards financing agreements instead of buying a car outright.
Overall, January knocked the German new-car market off its footing. However, some brands performed better than others in a slowing market.
Which brands recorded growth?
Volkswagen (VW) recorded more deliveries than any other carmaker in the German new-car market during January. This was despite suffering a double-digit decline compared to the previous year. Fellow VW Group brand Skoda was the country’s second-best-selling marque in the month. However, unlike VW, it enjoyed a double-digit improvement.
Domestic marques Mercedes-Benz, BMW and Audi took third, fourth and fifth, respectively. SEAT secured sixth, despite suffering the biggest year-on-year decline out of the 10 best-selling brands, at 29.8%. Opel, another Stellantis brand, enjoyed a 27.4% sales increase in seventh.
Behind, Ford endured a 11.1% drop in eighth, as Hyundai took ninth. Fiat rounded out the top 10 with an 87.2% surge compared to January 2025. This improvement made it one of the fastest-growing carmakers in the month. The marque with one of the largest volume surges was BYD, with a 1,018.7% year-on-year uptick to 2,629 registrations.
Lynk & Co saw even greater growth of 1,175%, but only to 51 units. Leapmotor saw a triple-digit increase, alongside Xpeng and Polestar. But once again, these brands’ results were also based on lower volumes.
Slowing EV growth
While carmakers saw varied registration growth, the electric vehicle (EV) market continued its streak of double-digit improvements. Volumes increased by 23.5% in January compared to 12 months prior.
This growth seems impressive at first glance, yet it marked a significant slowdown. It was the slowest EV registrations performance since December 2024. With 64,482 units hitting the roads, it also marked the lowest monthly delivery total since August 2025.
Smaller volumes can be explained by January typically being a slower month for new-car registrations. However, with EVs playing an increasingly important role in the overall market performance, maintaining growth rates has become crucial.
The powertrain group made up 33.2% of overall deliveries in January, up 8.1 percentage points (pp) year on year.
‘The passenger car market has made an extremely cautious start to the new year. For sustainable overall market growth in 2026, we need a further increase in BEV order intake,’ commented VDIK president Imelda Labbé.
Are incentives holding back demand?
Germany’s new EV incentives are set to boost registrations of plug-in powertrains. Buyers can submit funding applications for the new scheme, applicable to both BEVs and PHEVs, retroactively from 1 January 2026. The subsidy is expected to scale with taxable household income and family size. It is also dependent on the vehicle’s powertrain.
However, applications must be submitted through an online portal, which is expected to open in May 2026. This could mean that some buyers are withholding purchases to ensure incentives are applied closer to the point of sale. But for now, the market will need to survive without the immediate aid of subsidies.
‘Customers now need clarity as quickly as possible about the modalities of the BEV subsidy that has been promised since January,’ Labbé confirmed.
Elsewhere, the ZDK urgently appealed that the government does not waste time in implementing the incentives.
‘Delays in the implementation process have been causing uncertainty among companies and customers since the announcement of the EV subsidy two months ago,’ highlighted ZDK president Thomas Peckruhn.
BEVs losing momentum?
Of the two EV technologies, BEVs saw marginally stronger growth. Registrations improved by 23.8% compared to 12 months prior, with 42,692 units leaving forecourts. This was the smallest all-electric increase in percentage terms since June 2025. Despite this, its share soared by 5.4pp to 22%.
PHEVs enjoyed a 23% uptick in volumes, with 21,790 units. Yet, this was its lowest improvement since December 2024. The powertrain captured 11.2% of total deliveries, up 2.7pp year on year.
ICE maintains declines
In line with other major European new-car markets, registrations of ICE-powered models declined again in Germany during January.
Volumes slumped by 25.5% in the month, with 71,004 units. This represented the powertrain group’s biggest year-on-year drop in percentage terms since June 2025. Its share fell by 9.3pp to 36.6%.
Petrol suffered the bigger drop of the two fuel types, with a 29.9% delivery downturn. This was its fourth consecutive double-digit decline, and its biggest monthly fall since June 2025. The powertrain recorded 43,695 registrations, nearly half of its total from January 2024.
Petrol’s share slipped to 22.5%, down by 7.5pp year on year. It also marked the closest that the fuel type has ever been to BEVs in terms of market share. Just 0.5pp separated the two powertrains in January, compared to a 13.4pp gap one year ago.
Diesel deliveries dropped by 17.1% to 27,309 units. Like petrol, this marked its fourth consecutive double-digit decline. Furthermore, it also represented the lowest diesel volume since August 2025. Yet, its 14.1% market share, although down by 1.8pp year on year, was the powertrain’s highest since July 2025.
Has hybrid growth already peaked?
The hybrid market endured a 1.8% dip in January, with 58,206 new models taking to the road. The result comes after marginal growth in December and an uncharacteristic decline in November. These results signal a shift in the technology’s consistent upward momentum. Before this, hybrids achieved 14 months of consecutive growth.
While it pushed past petrol to become Germany’s most popular powertrain in 2025, recent performances may suggest that hybrids have reached their natural peak. The technology accounted for 30% of overall registrations in January, up 1.5pp year on year, but well below the 8.1pp rise achieved by EVs.
So, as a transition technology from ICE models to EVs, the tide may have already shifted in the latter’s favour. Moreover, as EV charging infrastructure improves and technology becomes more advanced, buyers may be less compelled to choose a hybrid.
What is undeniable is that electrified models, comprised of EV and hybrid volumes, now dominate the German new-car market. The powertrain group made up 63.2% of overall volumes in January, up 9.5pp year on year. This was helped by a 10.1% growth in registrations to 122,688 units.
December delivered a much-needed boost to the Italian new-car market. However, despite an eye-catching electric vehicle (EV) uplift, this did little to revive a stagnant 12 months. Following a year of inertia, what state is the sector in? Autovista24 web editor James Roberts examines the data.
Italy’s new-car market ended 2025 in decline. Across the year, 1,524,843 new vehicles took to the country’s roads, 33,228 fewer than 12 months prior. Compared to 2024 figures, this marked a 2.1% year-on-year dip, according to the latest data from ANFIA.
Conversely, December witnessed a year-on-year improvement in fortunes. The final month of the year saw 108,075 new vehicles join Italy’s car parc. This was an upswing of 2.3% and 2,390 units, according to Autovista24 calculations of ANFIA data.
However, this was the second-lowest monthly registration total of the year after August. Following a blunt 0% growth in November, December did signal a welcome positive rebound for the first time since September.
In terms of electrification, Italy’s EV uptake conundrum was laid bare. Throughout the year, battery-electric vehicle (BEV) and plug-in hybrid (PHEV) registrations have increased. This was boosted in November and December by quickly exhausted incentives. Despite this flash of prosperity, across the whole year, the plug-in market share has struggled to make a meaningful impact.
Hybrid powertrains, including full and mild versions, accounted for the highest volumes in 2025. This was reflected in the end-of-year deliveries and market share. Meanwhile, petrol and diesel continued a pattern of decline.
High EV sales too little too late?
In total, 21,925 new EVs were registered in December, including BEVs and PHEVs. This was the second-highest monthly total of 2025. The powertrain group saw a 130.3% year-on-year uptick, to the sum of 12,406 additional vehicles.
PHEVs had a particularly good December, with 9,851 registrations. The powertrain established a 165.4% year-on-year volume gain, plus a 9.1% market share, up 5.6 percentage points (PP). This was the fourth consecutive month of triple-digit increases for PHEVs.
Meanwhile, BEVs scored a second month of triple-digit increases. In total, 12,074 new all-electric vehicles reached customers in Italy. This propelled the monthly BEV market share to 11.2%, a significant 5.7pp increase compared with December 2024.
On the one hand, this December EV result is cause for celebration. Building on November’s peak EV volumes, it seems some momentum could be carried forward into 2026. However, November and December’s PHEV and BEV upswings were fueled by fleeting national incentives.
This is not unusual, and countries such as Spain have harnessed EV incentives effectively in 2025 to boost adoption. However, in Italy, the new-car market has been punctuated by short-lived and inconsistent policies. This uncertainty has stunted EV adoption.
EV momentum likely to fade
In late October, the Italian Ministry of the Environment and Energy Security (MASE) confirmed new EV incentives.
Under Italy’s National Recovery and Resilience Plan (PNRR), private buyers could receive up to €11,000 toward a new EV. This was subject to household income and the scrapping of a Euro 5 or older internal-combustion engine (ICE) car. Small businesses could claim up to €20,000 for an electric light- commercial vehicle (LCV).
The scheme had a total budget of more than €597 million, with a view to replace about 39,000 ICE vehicles. However, the incentives were fully claimed for use within 24 hours of launch, MASE confirmed.
In the short term, this had the desired impact. Immediately following the incentive launch, plug-in registrations breached 20,000 in November. This momentum prevailed into December, helping to ensure a monthly share high of 20.3%, a sizeable 11.3pp surge.
‘What really stands out is the market share of BEVs, which reached 11.2% in December,’ affirmed Marco Pasquetti, Autovista Group’s cluster head of forecasting for Spain and Italy. ‘This is remarkable considering that for most of the year the share hovered around 5%.
‘This increase was expected and is largely the result of the incentive scheme launched in October, which generated some 55,700 vouchers for the purchase of an equal number of vehicles. Since the bonus is no longer available, this positive momentum is likely to gradually fade in the coming months,’ he added.
Poor PHEV and BEV market share
Assessing 2025 as a whole, the EV market share in Italy has increased significantly. However, as ANFIA outlined, growth remains ‘very slow.’ When isolating BEV and PHEV powertrains, the relative lack of impact in the overall market is apparent.
In all, 192,964 EVs took to Italian roads in 2025, according to ANFIA. This proved to be 74,652 more than the previous year, a 63.1% increase. EVs secured a 12.7% share, one of the lowest of the major European new-car markets.
98,340 PHEVs left Italy’s forecourts in 2025. While this signalled a satisfying 86.6% year-on-year volume increase, the overall market share stood at 6.4%. This was the second lowest of Italy’s six propulsion categories, according to Autovista24 analysis of ANFIA data.
Just 3,716 units behind, BEVs ended the year with 94,624 registrations, up 44.2% on 2024 totals. Despite the clear gains, the powertrain made up the lowest share of Italy’s new-car market at 6.2%. This was an increase of just 2pp year on year.
Hybrid decline on the horizon?
Across the whole of 2025, hybrid power proved the most popular choice for Italy’s new-car buyers. Amid stop-start and sluggish EV inroads, the thirst for this powertrain remained strong. However, despite this apparent Europe-wide trend, are things changing?
Complete ANFIA data for 2025 revealed that 671,923 hybrid vehicles were sold in Italy last year. This secured the largest portion of the country’s new-car market at 44.1%, up 4.1pp year on year. Aside from the holiday month of August, December returned the second-lowest hybrid volume of 2025. 46,048 units were delivered in the month, carving out 42.6% of the market.
While dominant, the hybrid share fell throughout the year. Compared with January, hybrid’s hold was down by 2pp in December. Although relatively small, it could suggest buyers could be turning towards alternative powertrain options.
Electrification creeping up
One thing was certain across Italy’s new-car market in 2025. When it comes to electrified vehicle registrations, hybrids provided the backbone.
Adding hybrid figures to EV volumes, these powertrains accounted for 56.7% of the Italian new-car market in 2025. In total, 864,887 units heralded a 16.7% year-on-year volume increase.
Removing hybrid totals drops the market share to just 22.6%. In many ways, this illustrates the double-edged sword of hybrid success. The powertrain could be a gateway from ICE to fully-electric cars. However, its enduring appeal amid overall low sales totals is stunting the EV transition.
The European Commission’s recent Automotive Package could see Italy standing at a crossroads. With the sale of new ICE vehicles, including mild hybrids, potentially extended beyond 2035 in the EU, questions have emerged domestically.
These changes could dent EV uptake, further hindering growth and market diversity in Italy. This is amid already uneven incentive frameworks. Industry bodies such as UNRAE have cited the Commission’s proposal as a ‘starting point, but not yet satisfactory.’
‘Critical issues remain and aspects to be clarified and improved to avoid negative effects on the market, consumers and industrial competitiveness,’ elaborated UNRAE president, Roberto Pietrantonio. ‘The transition must be effective and practicable, not just ambitious, and to become so it needs realism and listening. Adequate tools are needed, such as a review of the taxation of company cars, widespread development of electric charging infrastructure, and affordable charging tariffs.’
Decline for petrol and diesel?
While it may go against the grain of green targets, Italy’s ICE sector proved resilient amid a trend of decline. ICE totals, including petrol, diesel and bio diesel variants, accounted for 519,563 registrations in 2025. This meant a market share of 34.1%, down from 43% in 2024.
The continued decline of ICE demand in Italy is not in doubt and is reflected across most of Europe. The powertrains have been able to maintain a strong grasp on the overall new-car market. However, examining petrol and diesel registrations in isolation reveals significant drops.
Petrol ended the year 18.2% down on 2024, while diesel underwent a drastic 31.6% slide. However, both these fuel types held higher respective market shares than individual PHEV and BEV variants. After hybrid powertrain volumes, petrol clearly remains the second most popular new-car choice with 24.4% of the overall market.
Made up of liquified petroleum gas, compressed natural gas and hydrogen fuel-cell vehicles, the ‘other’ category ended 2025 strongly. It held a 9.2% market share, down just 0.2pp. It ended the year as the fourth most popular fuel type grouping, and another thorn in the side of EV uptake.
Unseating ICE resilience, as well as hybrid dominance, will be key to boosting the relatively scant EV market share in Italy. New incentive packages will be central to increased EV market share in 2026, which UNREA highlights as a ‘key year for the future of the sector.’
The European Commission’s automotive package proposes new internal-combustion engine (ICE) powered vehicles could be sold past 2035 in the EU. Autovista24 editor Tom Geggus unpacks the news and what it means for the region’s automotive industry.
The European Commission’s automotive package has opened the door to greater CO2emissions flexibility for carmakers. The proposal comes following pressure from member states and big automotive players.
Under current rules, all new cars and light-commercial vehicles (LCVs) sold in the EU would need to emit zero CO2 from 2035 onwards. Instead, the automotive package published today considers the possibility of technological neutrality.
What is in the automotive package?
From 2035 onwards, carmakers will only need to cut vehicle CO2 tailpipe emissions by 90%, compared with 2021 figures. The companies will need to make up for the remaining 10% by using low-carbon steel made in the EU, or from e-fuels and biofuels.
ICE-powered models, plug-in hybrids (PHEVs), mild hybrids (MHEVs), and extended-range electric vehicles (EREVs) will still be available to purchase. Battery-electric vehicles (BEVs) and hydrogen vehicles will also be available.
The 2030 target could also be more flexible, with a ‘banking and borrowing’ scheme between 2030 and 2032. This means manufacturers could get three years to reduce their CO2 emissions by 55% compared with 2021.
The Commission acknowledged the slower progress of the electric LCV market. It suggested the 2030 CO2 target for LCVs will be reduced from 50% to 40%.
The automotive package also sets mandatory zero and low-emission vehicle share targets for corporate fleets. These will be set at the member state level to reflect differing levels of market maturity, according to the Commission. The total number of corporate vehicles registered by large companies will then be passed back to the Commission.
The Commission has also updated its car labelling rules, which provide CO2 and energy performance information to consumers. This will now include electric energy consumption and the range of electric vehicles (EVs). The scope of these labels will also be increased beyond new vehicles. New LCVs, used cars and used vans will also be covered.
Further automotive measures in the EU
The package also proposes the use of what the Commission is calling ‘super credits’. Carmakers will be able to earn these by selling small and affordable electric cars made within the EU. The hope is that this will incentivise the introduction of smaller EVs.
The Commission also stated a €1.8 billion battery booster could accelerate the development of a local battery value chain. Of this, €1.5 billion is earmarked to support European battery cell producers with interest-free loans.
The omnibus proposal could bring savings for businesses and national administrators to €706 million, according to the Commission. This is broken down into €655 million in compliance costs and €51 million in administrative costs.
Alongside the Commission’s other omnibus measures and simplification initiatives, administrative savings could climb to €14.3bn per year. This should help local carmakers concerned about the cost of electrification and the adoption of zero-emission vehicles.
Support for automotive package
‘Innovation. Clean mobility. Competitiveness. This year, these were top priorities in our intense dialogues with automotive sector, civil society organisations and stakeholders,’ said European Commission President von der Leyen.
‘Today, we are addressing them all together. As technology rapidly transforms mobility and geopolitics reshapes global competition, Europe remains at the forefront of the global clean transition,’ she outlined.
Apostolos Tzitzikostas, Commissioner for sustainable transport and tourism, highlighted that Europe’s automotive industry is a cornerstone for the region’s economy. He stated that it contributes 7% towards EU gross domestic product and provides nearly 14 million jobs.
‘With today’s automotive package, we are strengthening the sector’s competitiveness introducing flexibility into the CO₂ standards for cars and vans and a technology-neutral framework. We are also creating demand for cleaner corporate cars and vans, reinforcing EU manufacturing and supply chains,’ he said.
Germany’s automotive body, the ZDK, came out in full support of the automotive package. It called the proposal necessary and overdue in the step towards a more realistic European climate policy.
‘We offer highly efficient combustion engines, namely the 48-volt mild-hybrid engine, which provides a climate protection benefit when fuelled with carbon-neutral fuel. This technology is one of the options for complying with future CO2 fleet regulations,’ said ZDK president Thomas Peckruhn.
‘Specifically, emissions measurements at the exhaust must account for fuel origin. Carbon-neutral fuels should be excluded from the balance. If in the future only pure electric vehicles are demanded, these offerings will naturally disappear from the market without complicated regulations and high penalties,’ he added.
Proposal creates concern
The proposal also drew criticism. Green group Transport and Environment (T&E) said reversing the phase-out of ICE sends a confusing signal to the automotive industry and consumers. It calculates the 90% CO2 target could result in 25% fewer BEV sales in 2035 than under the current target.
It welcomed the introduction of national electrification targets for large company fleets. However, it claimed that these will not be ambitious enough to drive greater uptake for the sector.
‘The EU has chosen complexity over clarity. Breeding faster horses could never have halted the ascent of the automobile,’ said William Todts, executive director at T&E.
‘Every euro diverted into PHEVs is a euro not spent on [B]EVs while China races further ahead. Clinging to combustion engines will not make European automakers great again,’ he commented.
‘While China accelerates, Europe is hesitating, and hesitation is not a strategy. Changing the rules midway through the game undermines business confidence after companies have already committed capital and built factories around a 100% trajectory,’ said Chris Heron, secretary general of E-Mobility Europe.
‘But once the dust has settled, we are confident the core of the 2035 framework will still matter more for the market than today’s exemptions. The world’s transition to EVs is irreversible, shaped by cost and efficiency,’ he added.
Will the German new-car market achieve full-year registrations growth in 2025? So far, electric vehicles (EVs) have provided some hope, but they also pose a hurdle ahead. Autovista24 journalist Tom Hooker explores the numbers.
Deliveries of new cars in Germany rose by 2.5% in November, capping a fifth straight month of improvement. The 250,671-unit total was once again driven by electrified powertrains, data from the KBA shows. But for the first time this year, not all of them recorded growth.
‘Despite one fewer working day, new-car registrations still rose. Adjusted for the calendar effect, growth was 7.6% in November, signalling continued recovery,’ noted Robert Madas, Autovista Group’s regional head of valuations.
Breaking the overall total down by sales channel, the private sector was another positive force. Deliveries to individuals rose by 10.1%. Meanwhile, commercial registrations dropped by 1%, despite making up 65.7% share of the market.
Crisis mode?
‘Year-to-date, the market is up 0.7% to 2,611,152 units,’ highlighted Madas. ‘This confirms only a modest rebound overall.’
The result means the market should see full-year growth in 2025. Yet, for some industry figures, the current level of growth does not signal a healthy environment.
‘A mini increase does not conceal the problems. The German automotive market is still in crisis mode,’ stated ZDK president Thomas Peckruhn.
Yet, upcoming EV incentives could create the perfect storm. Buyers may be holding back on plug-in purchases until they can benefit from the new scheme, which begins in January 2026. While not affecting all registrations, Germany is now more dependent on EVs compared to 2023, when subsidies were last available.
Important market changes ahead
According to ADAC, the new incentives will support private households with low and middle incomes to buy or lease an EV. Funds will be available for both BEVs and PHEVs. To receive the incentive, the car must remain in the possession of the applicant for a defined period.
The subsidies are aimed at individuals with a taxable annual household income of up to €80,000. The incentive amount will be at least €3,000, increasing by €500 per child to a maximum of €4,000. For those with a monthly net income below €3,000, there are plans for an additional €1,000 boost.
However, incentives alone are far from the only component that is vital for a healthy EV market. The VDIK stated that ‘customers are generally open to electric cars if the total costs are no higher than for combustion engines.’
‘With a fast, unbureaucratic and fair implementation of the subsidy program announced by the coalition, the expansion of infrastructure and lower electricity prices, the CO2 fleet limits could just about be achieved in the coming year,’ forecasted VDIK president Imelda Labbé.
‘This is conditional on the programme coming into force retroactively on 1 January 2026,’ she explained.
Charging infrastructure masterplan
‘Another key development supporting the EV transition is the recently adopted “Masterplan Ladeinfrastruktur 2030”. This sets the strategic framework for a nationwide, user-friendly charging network and measures strengthening demand,’ explained Madas.
‘Without timely implementation, the risk remains that infrastructure expansion lags behind EV adoption. This would undermine consumer confidence and slow the market ramp-up,’ he commented.
The plan looks to boost demand and investment, simplify and accelerate implementation, as well as increase price transparency. Improvement of the electricity grid integration and enhancing user-friendliness are also covered.
‘The master plan provides for a whole series of correct measures that can help to further increase the attractiveness of electric mobility. It will be crucial that these measures are now implemented quickly and consistently,’ outlined VDA president Hildegard Müller.
‘It is also welcomed that the master plan provides improved framework conditions for bi-directional charging technology, which the Bundestag further strengthened and made more attractive for consumers with the amendment of the Energy Industry Act and the Electricity Tax Act,’ she added.
Following the plan’s adoption, the ZDK, VDIK and BBM published a joint position paper. The document presents a transmission which grants electricity providers non-discriminatory access to public charging stations. It also enables customers to use their own electricity tariff in public spaces, regardless of the operator.
The three industry bodies say that the model ensures more transparency, uniform billing and freedom of choice between charging providers.
‘If you want to anchor electromobility on a broad scale, you have to consistently think about the charging infrastructure from the user’s point of view,’ emphasised Peckruhn.
‘Non-transparent, sometimes high charging tariffs and a jumble of payment cards and billing systems still deter many consumers from buying electric cars. The transmission model can untangle this knot,’ he added.
Historic EV performance
Battery-electric vehicles (BEVs) and plug-in hybrids (PHEVs) enjoyed another positive performance in November. Together, the EV category recorded its highest monthly volume and market share since August 2023. This month saw a pull-forward effect, before subsidies for commercial BEV buyers ended in September 2023.
The 88,174 EV total in November equated to a 58.1% rise year on year. This marked 11 consecutive months of double-digit growth. Meanwhile, the EV share sat at 35.2%, up by 12.4 percentage points (pp) year on year.
The powertrain grouping enjoyed a 48.4% uptick in volumes from January to November, with 771,507 deliveries. Plug-ins made up 29.5% of the overall market, up from 20.1% in the first 11 months of 2024.
Mysterious BEV market
In terms of growth, BEVs were the best-performing powertrain in November. This marked a fifth straight month of double-digit improvements.
‘BEVs surged 58.5% to 55,741 units, capturing a 22.2% market share, the highest since the end of purchase subsidies nearly two years ago,’ outlined Madas.
This was also the highest monthly volume and growth for BEVs since August 2023, which felt an incentive pull-forward effect. Meanwhile, its share was up 7.8pp year on year.
Across the first 11 months of the year, volumes surged 41.3% to 490,368 units. This gave BEVs an 18.8% market share, up from 13.4% during the same period of 2024.
Despite these overwhelmingly positive figures, some cracks are appearing. Private registrations of BEVs have not been as strong as expected, even with the sales channel driving overall new-car market growth.
According to the ZDK, the increase can be largely attributed to ‘persistently high self-registrations by manufacturers and dealers.’
‘The supposed rise of electromobility is on shaky ground,’ explained Peckruhn. ‘In fact, a large proportion of new BEVs initially end up in factory and dealer yards. Private and commercial new registrations are not yet quite at the level of 2023.’
PHEV’s unbreakable streak
‘PHEVs also saw deliveries accelerate, up 57.4% to 32,433 units,’ said Madas.
This proved the powertrain’s biggest monthly volume since December 2022. But once again, this month witnessed an incentive-affected pull-forward effect. The figure also continued its perfect streak of double-digit growth in every month so far this year.
The 57.4% increase was the lowest PHEV growth since February 2025, showcasing the technology’s strength this year. Plug-in hybrids represented 12.9% of the overall market last month, up 4.5pp compared to November 2024.
From January to November, a total of 281,139 PHEVs were delivered to customers in Germany. This translated to a 62.7% improvement year on year. The powertrain accounted for 10.8% of total volumes, up from a 6.7% share during the first 11 months of 2024.
Emission target impact
With EU CO2 fleet limits now averaged from 2025 to 2027, PHEVs can provide a boost towards targets. The technology does emit more tailpipe emissions than BEVs. However, they do provide a bridge for customers who are still unsure about going fully electric.
Yet, according to the VDA, the EU Commission is planning to reduce the PHEV utility factor. This means the technology will count as emitting more CO2 for fleet compliance purposes, unless it demonstrates sufficiently high electric-drive usage.
In turn, this could reduce the credit that PHEVs contribute to a manufacturer’s CO2 target. If this comes into effect, brands may try to push BEVs more than PHEVs.
‘Compared to ICE models, plug-in hybrids can make a noticeable contribution to achieving the CO2 fleet limits if used appropriately. They also significantly encourage customers to switch to pure-electric cars at a later date,’ outlined Labbé.
‘We therefore call on the EU Commission to refrain from the planned reduction of the utility factor from January 2026. This is the only way to create a meaningful framework for the federal government’s planned plug-in funding,’ she highlighted.
Hybrid’s abnormal knock
Germany’s hybrid market, including full and mild hybrids, endured an unexpected knockback in November. It recorded a 4.1% decline in registrations year on year. This was the powertrain’s worst monthly performance since July 2022 and its first drop since August 2024.
Its 70,916-unit total still accounted for a majority 28.3% share of the new-car market. However, this was down 1.9pp year on year.
In the first 11 months of 2025, hybrid volumes rose by 8.7% to 744,838. Its share sat at 28.5%, down from 26.4% during January to November 2024.
Adding hybrids to the EV total, the electrified market recorded a 22.6% increase in volumes during November. This was the powertrain grouping’s lowest improvement since June. However, its 63.5% share was the highest of the year so far. It also equated to a 10.5pp rise year on year.
In the cumulative figures, electrified registrations in Germany posted a 25.9% uptick. The three technologies captured 58.1% of overall volumes, up from 46.5%.
Petrol and diesel market parallels
Deliveries of new petrol and diesel-powered cars witnessed a similar performance in November. Petrol endured a 21.1% fall to 61,067 units, while diesel posted a 19.3% drop to 29,471 registrations.
The two fuel types also saw their market share fall to the lowest point since December 2022. Diesel models made up 11.8% of total registrations, down 3.1pp year on year. Meanwhile, petrol represented 24.4% of overall volumes, a drop of 7.2pp compared to 12 months prior.
Petrol’s once comfortable lead over BEVs is slowly eroding. The share of all-electric models in November trailed the fuel type by 2.2pp. In January this year, the gap was 13.4pp.
From January to November, deliveries of petrol-powered cars fell by 22.4% to 715,724 units. This caused its market share to drop from 35.6% to 27.4%. Diesel suffered a slightly smaller drop of 18.6% to 367,934 registrations. The powertrain accounted for 14.1% of the market, down 3.3pp year on year.
Unsurprisingly, the ICE market, which combines registrations of both fuel types, endured a 20.5% sales slump last month. This was its second double-digit drop in succession. The ICE share sat at 36.1%, down by 10.5pp year on year. The powertrain made up 41.5% of the new-car market after 11 months of 2025, down from 53%.
The UK budget included a pay-per-mile tax for electric vehicles (EVs). But how will this work, and what are the potential costs involved? Autovista24 special content editor Phil Curry analyses the data.
A new pay-per-mile scheme for EVs is to be introduced in the UK from 2028. The latest budget announcement confirmed that both battery-electric vehicles (BEVs) and plug-in hybrids (PHEVs) are to be subject to this tax.
For BEVs, this rate will start at 3p per mile. For PHEVs, a discounted rate of 1.5p will be introduced. This must be paid for every mile covered by the vehicle, alongside petrol or diesel.
The Electric Vehicle Excise Duty (eVED) will see drivers pay for their mileage alongside their existing Vehicle Excise Duty (VED). The pay-per-mile rates will be kept in line with inflation from 2029 onwards. Alongside the annual £195 VED requirement after the first year of registration, BEV drivers travelling an average of 7,000 miles a year would pay £405 a year in tax.
A consultation has been published to gain opinions on how the system will work. It states that drivers will estimate their annual mileage and pay for the year ahead or spread the cost monthly. At the end of the year, actual mileage can be submitted, at which point a ‘reconciliation’ will be required.
‘In moves to update the tax system for a modern-day economy the government is introducing a new per-mile levy for electric and plug-in hybrid cars, coming in 2028. All cars contribute to wear and tear on our roads, so it is only right that our motoring taxes cover EVs via a modest per-mile levy, with extra support to keep EV ownership attractive,’ the government announced.
How to pay the mileage charge
The eVED scheme will require drivers to input their annual mileage when renewing their VED. This suggests a change in the way drivers apply for VED.
Currently, vehicle owners can opt to pay for a full 12 months, six months, or a monthly fee. Automatic renewal is offered, with payments taken using direct debit. For monthly payments, this continues until cancelled.
If EV drivers need to input their mileage at the VED renewal stage, this suggests the rolling-payment scheme may end. Instead, owners will likely need to fill out new forms each year, including current mileage and projected annual mileage.
This change has not yet been confirmed but is suggested in the government’s consultation document. Whether this requirement will be rolled out to drivers of all powertrains, or just EV owners, remains to be seen.
The costs of pay-per-mile
The BEV pay-per-mile tax appears to have been calculated at roughly half the cost per-mile fuel duty for petrol. This currently sits at 53p per litre. The budget stated this will remain frozen until September 2026, when it will rise in line with inflation.
Based on an average of 36 miles per gallon (MPG), a petrol car’s per-mile fuel duty costs currently reach 7p. However, diesel vehicles, with an average of 43mpg, achieve a cost per mile of 6p. Hybrids, which have an average of around 59mpg, have a per-mile cost of 4p.
Averaging the MPG of the two pure internal-combustion engine (ICE) technologies, the cost per mile sits at 6p. This is double the planned BEV rate.
According to the latest car parc data from the SMMT, there were 1,334,108 BEVs on UK roads at the end of 2024. Assuming a yearly average of 7,000 miles, this fleet would raise over £280.16 million via the pay-per-mile tax.
This is a small amount compared to the income generated for petrol models. There were 21,041,175 of these cars on the UK roads at the end of 2024. Based on a rate of 7p per mile, this parc would generate £10.31 billion for the UK treasury. This is based on an average distance of 7,000 miles a year per car.
For PHEVs, the situation is more complex. Drivers will be paying both fuel duty and pay-per-mile tax. This could see a cost of 7p per mile for a petrol PHEV, including 1.5p for the electric powertrain.
Could pay-per-mile reduce fuel duty loss?
The pay-per-mile tax has been brought in to help offset any declines in fuel duty that the treasury as electrification continues. The Office for Budget Responsibility (OBR) stated that £1.4 billion would be raised by introducing pay-per-mileage for EVs.
However, it also warned that: ‘on the basis of the current policy settings, this only makes up for about one-quarter of the receipts that will be lost from the decline of fuel duty by 2050.’
It appears there is currently little threat of declining fuel duty income to warrant the new tax. This would require a significant reduction in the number of petrol and diesel models in the UK by 2028.
In 2024, the UK car parc stood at 36,165,401 units, according to SMMT data. This was a 1.3% rise year on year. Of these, 34,088,155 units were either a petrol, diesel or HEV. This was a 0.3% decline compared to 2023 figures, based on Autovista24 calculations.
This decline was driven by a fall in petrol and diesel figures. Combined, ICE-powered passenger cars fell 1.1% compared to 2023 totals.
Across all vehicles, fuel duty raised £24.6 billion in revenue in 2024, according to the Office for National Statistics.
If pure ICE passenger cars each averaged 7,000 miles, fuel duty would have generated £15.18 billion, Autovista24 calculates. This was down by 0.9%, compared to £15.31 billion in 2023, based on the same criteria. If the pay-per-mile tax were implemented on 2024 car parc figures, BEVs would offset this decline by £16.57 million.
While EV sales are increasing, they are not simply replacing petrol, diesel or HEV models. It will be some time before the decline in ICE passenger cars is large enough to see a significant drop in fuel-duty income.
The PHEV issue
For PHEVs, the situation is more complex. As reporting electric-only mileage will be impractical, the pay-per-mile rate has been reduced to 1.5p. This will be applied to the total mileage travelled in a year, regardless of power used. PHEVs will also be required to continue paying fuel duty when filling up.
‘The government recognises that PHEV driving habits vary and that some motorists will drive more or less than 50% in electric mode. However, alternative options would require motorists to report their exact mileage driven in petrol versus electric mode, which is not considered a practical or proportionate approach,’ the government stated in its consultation document.
‘A reduced rate for PHEVs strikes the right balance between fairness, protecting motorists’ privacy and minimising administrative burdens on motorists,’ it continued.
This would mean that for a petrol PHEV, drivers could end up paying 8.5p per mile. Covering 7,000 miles per year, plug-in hybrid owners would pay £595 a year. Of this, just £105 would contribute to electric-only usage.
In comparison to a BEV driver paying just £210 for the same distance, the charge seems disproportionate. The PHEV cost is also much higher than the £490 for petrol powertrains after 7,000 miles.
The situation could impact the PHEV market, which has been performing well throughout 2025, according to SMMT data. Drivers may not want to spend larger amounts on the powertrain. The bridging technology could see new-car deliveries plummet, with customers moving back to ICE, or switching to HEVs or BEVs.
Wrong time for pay-per-mile tax?
The introduction of pay-per-mile driving for EVs is another additional tax on BEVs. This year has already seen all-electric models eligible for VED and the Expensive Car Supplement (ECS).
The government is pushing for BEV adoption, with the zero-emission vehicle mandate placing strict requirements on carmakers. Yet these taxes, while bringing the technology in line with other powertrains, could put buyers off investing in all-electric models.
‘This new pay-per-mile charge is likely to reduce demand for electric cars as it increases their lifetime cost. To meet the ZEV mandate, manufacturers would therefore need to respond through lowering prices or reducing sales of non-EV vehicles,’ the OBR stated in its report.
‘Overall, as a result of this measure, we estimate there will be around 440,000 fewer electric car sales across the forecast period relative to the pre-budget forecast, with 130,000 of this offset by the expected increase in sales due to other Budget measures,’ it continued.
Mike Hawes, SMMT chief executive, commented: ‘Changes to the VED expensive car supplement are welcome, as is the additional £1.3 billion funding for the Electric Car Grant and support for charging infrastructure. These will help, but will not offset the impact of introducing a new electric-Vehicle Excise Duty, the wrong measure at the wrong time.
‘Manufacturers have invested to bring more than 150 EV models to market. However, the pressure to deliver the world’s most ambitious zero emission vehicle sales targets – whilst maintaining industry viability – is intense. With even the OBR warning this new tax will undermine demand, government must work with industry to reduce the cost of compliance and protect the UK’s investment appeal,’ he added.
Boosting EV uptake
The chancellor did announce an increase in the ECS for BEVs. This only became applicable to the technology in April 2025, with the level set at £40,000. This was the same amount as other powertrains.
However, BEVs often cost more than their petrol and diesel counterparts. In this regard, the budget announcement included a new limit of £50,000 for all-electric models.
This increase comes into effect in April 2026. Until then, BEVs are still subject to the £40,000 level. This could see buyers considering more expensive models delay their purchases. However, there is an increasing number of more affordable models coming to market.
In addition, an extra £1.3 billion of funding will be allocated to the Electric Car Grant. The incentive scheme will also be extended to run until the 2029-2030 financial year.
The ending of Employee Car Ownership Schemes, which was due to come into effect in April 2026, has also been delayed. These schemes can now run until April 2030.
Finally, a raft of measures for EV charging infrastructure was announced. This includes an extra £100 million investment to increase the infrastructure in the UK. In addition, a review into the cost of public EV charging will be launched in the first quarter of 2026. This will run until the third quarter of the year, after which a report will be published.
The UK’s electric vehicle (EV) market is under pressure to perform in 2025. But how are new entrants and the introduction of the Electric Car Grant (ECG) helping to drive sales? Autovista24 special content editor Phil Curry examines the data.
The UK’s EV market, made up of battery-electric vehicles (BEVs) and plug-in hybrids (PHEVs), is continuing to grow. Sales have benefited from new entrants and the reintroduction of incentives.
In total, 522,489 EVs were sold in the country nine months into 2025, according to the latest data from EV Volumes. This equated to a 32.2% increase year on year. Of the two powertrain technologies, BEVs were more popular, accounting for 66.9% of all plug-in deliveries in the UK.
With 349,704 deliveries between January and September, the BEV market increased by 29.6% compared to the same period of 2024. Meanwhile, the PHEV sector recorded 172,785 sales, signalling a 37.7% improvement.
BEVs are under pressure to perform in the UK at present. The zero-emission vehicle (ZEV) mandate requires 28% of a carmaker’s deliveries to be either BEV or hydrogen fuel-cell models. SMMT data revealed that BEVs only made up 22.1% of the UK’s entire new-car market three quarters into 2025.
BYD leads new entrant boost
Over the last few years, the UK has become an attractive prospect for new entrants to the European automotive market. Many of these brands are subject to EU import tariffs, with a focus on BEVs built in China.
Of these new entrants, the most impressive performance came from BYD. Between January and September 2025, it sold the third-largest number of EVs in the UK, reaching 35,474 units. This was up 574.4% compared to the same period in 2024.
The marque has been helped by its popularity in the plug-in hybrid market. Over the first three quarters of the year, the UK’s best-selling PHEV was the BYD Seal U, with 16,129 deliveries. It accounted for 9.3% of all PHEVs sold, leaving the industry stalwart, the VW Tiguan, in second.
The rest of the carmaker’s tally came from the BEV market. While not placing in the annual top 10 chart after three quarters of the year, BYD did make inroads with the Sea Lion 7 in September. It was the sixth best-selling BEV in the month, moving 2,019 units. This was impressive for a model that only started deliveries in January, ending the month with a 2.8% market share.
Jaecoo impresses as another new entrant
Another impressive new entrant is Jaecoo. It only offered one model in the UK across the first nine months of 2025: the J7 PHEV. With deliveries first recorded in March 2025, it took third in the annual PHEV top 10 with 12,463 units. This puts it just 110 units behind the VW Tiguan, meaning it could end the year as the second-best-selling PHEV.
September was the model’s best month on the market, with 4,855 deliveries, allowing it to take second. This meant the Jaecoo J7 held 12.6% of the PHEV market in the month. Alongside the BYD Seal U, it was one of two models to achieve a double-digit market share in September.
However, Jaecoo’s reliance on one model over three quarters of 2025 did impact its position in the brand ranking. In September, the carmaker placed ninth. Yet this position could be boosted by the introduction of the Jaecoo 5 later this year.
Jaecoo’s sister brand, Omoda, saw 6,154 sales between January and September, placing it 23rd in the brand chart. The carmaker has not fully focused on the EV market, with its Omoda 5 model offered with BEV or petrol powertrains.
There are also other new entrants to the UK market that are still expanding their operations. These include Leapmotor, Chery, Xpeng and Geely. More brands mean more choice for consumers, something that can help spur the EV market forward.
Incentivising the market
In July 2025, the UK government announced the introduction of the Electric Car Grant. This incentive scheme sees up to £3,750 offered against the list price of a new BEV.
This plan includes two tiers, with manufacturers required to nominate their passenger cars and light-commercial vehicles to be eligible. Models will either qualify for a discount of £3,750 (€4,299) or £1,500.
The grant level is based on strict sustainability criteria. This includes the level of CO2 emitted during the production process, supply-chain emissions, and the use of renewable energy sources.
Battery production emissions account for 70% of the criteria targets, with vehicle assembly emissions weighted at 30%, the RAC reports. The carbon intensity of the electricity grids where production takes place is also considered. Additionally, only BEVs with a list price of under £37,000 will be eligible.
Currently, only three vehicles qualify for the maximum discount. These are the Ford Puma Gen-e, the Ford E-Tourneo Courrier, and the Citroën ë-C5 Aircross Long Range. Both Ford models were added to the list at the end of August, while the Citroën became eligible at the beginning of November. There are a further 38 models in the second tier, eligible for a £1,500 discount.
Is the Electric Car Grant working?
At first glance, it appears the ECG has had little impact on the UK’s BEV market. In September, the two best-selling models were the Tesla Model Y, with 4,273 units, and the Tesla Model 3, with 3,720 deliveries. The former lost volume compared to 2024, by 26.3%. However, the Model 3 jumped by 100.5% year on year.
Yet the Ford Puma Gen-e was the third-best-selling BEV in September. This was the first full month of the model’s eligibility for the ECG discount. Having gone on sale in April 2025, the Puma Gen-e did not achieve more than 635 deliveries until September. On reaching this month, it achieved a volume of 3,144 units.
The UK often sees a bounce in passenger car sales in September due to the plate-change effect. However, the Puma Gen-e achieved a month-on-month improvement of 1,383%. In comparison, the Ford Explorer saw an increase of 67.9%, while the Ford Capri achieved 109.6% growth.
Therefore, it does seem that Ford has benefited from its BEV model being eligible for the full ECG discount.
The only other ECG-approved model that made September’s top 10 BEV chart was the Skoda Elroq. Having come to market in January 2025, it saw 1,671 sales in the month, placing it eighth. This was its highest total of the year but was comparable with its 1,206 sales in March. So, it seems the model’s position is based more on the model’s popularity than its £1,500 grant.
The rest of September’s top 10 BEV table was made up of models that are not eligible for the ECG. Therefore, it may be a while before the full effect of the grants becomes clear.
Tesla domination continues
Across the first nine months of 2025, the Tesla Model Y led the market with 18,310 sales. This gave it a 5.2% market share. Close behind was the Tesla Model 3, with 16,605 deliveries and a 4.7% hold of the all-electric total.
The two US models have a commanding lead ahead of the third-placed Audi Q4 e-tron. This saw 11,087 sales in the nine-month period, for a 3.2% market share.
In the PHEV market, behind the top three, the Ford Kuga placed fourth, some way behind the Jaecoo J7. With 8,305 sales, it achieved a 4.8% share of the total PHEV volume after three quarters of 2025. It was ahead of the MG eHS, which managed 5,739 deliveries and a 3.3% market share.
Of Europe’s major new-car markets, Spain’s is shining the brightest. But with electric vehicles (EVs) once again powering growth, could incentive uncertainty dim this success? Tom Hooker, Autovista24 journalist, evaluates the figures.
At first glance, Spain’s 15.9% year-on-year new-car market growth recorded in October seems undeniably positive. It marks the country’s sixth consecutive month of double-digit growth and the eighth overall in 2025. So far this year, the country has not registered any decreases in overall monthly volume.
Compared with October 2024, an additional 13,313 units were delivered according to Autovista 24 calculations of ANFAC data. This brought the month’s total to 96,785 registrations.
Important takeaways
Of all the powertrains, EVs and hybrids, including both full and mild-hybrids, were at the centre of this growth. This highlights Spain’s increasing interest in electrification.
‘October’s new-car registration figures provided three important takeaways. Firstly, this was the first month in which deliveries surpassed pre-pandemic levels,’ noted Ana Azofra, Autovista Group’s head of valuations and insights, Spain.
‘Secondly, we are seeing the clear dominance of hybrid vehicles, which accounted for 43.2% of all registrations. Thirdly, Spain continues to make steady progress toward electrification. Plug-in hybrids (PHEVs) and battery-electric vehicles (BEVs) reached a 22.4% market share in October, to the detriment of internal-combustion engines. For example, diesel vehicles accounted for only 5.6% of sales.’
‘Overall, the month highlights Spain’s ongoing move toward vehicle electrification, supported both by the product strategies of carmakers and by increasing consumer interest in lower fuel consumption and reduced emissions,’ Azofra commented.
Individual buying power
The private sales channel boosted registrations in October, according to ANFAC. It saw a 23.9% year-on-year increase to 51,359 units. The corporate sector also enjoyed a delivery boost of 10.2% in the month, reaching 39,860 units. Conversely, the rental channel suffered a 5.2% decline to 5,566 registrations.
Spanning the first 10 months of 2025, new-car volumes rose by 14.9% to 951,388 deliveries according to Autovista24 calculations.
‘The market continues its upward trend in October and accumulates 14 consecutive positive months. Private purchases continue to mark significant increases compared to 2024,’ said GANVAM communication director Tania Puche.
In contrast, new-car volumes in France, Germany, Italy and the UK have not deviated far from their 2024 figures. This, combined with rising economic and geopolitical uncertainty in Europe, makes Spain’s performance particularly impressive.
However, it is not all positive news. October’s result is the lowest monthly growth since June. So, is there a genuine cause for concern?
Incentive uncertainty for EVs
The MOVES III purchase incentive scheme was implemented in April this year. Since then, EV volumes, which combine BEV and PHEV deliveries, have soared.
From May to August, both BEVs and PHEVs enjoyed triple-digit year-on-year growth every month. This plug-in progress culminated in a 24.4% market share in August, according to Autovista24 figures. Last month, however, the EV market share was two percentage points (pp) lower, according to ANFAC data.
The national incentive scheme runs until 31 December 2025. There has been no official announcement that the subsidies will continue past that date.
‘On the table now is the question of whether the MOVES incentive plan will be renewed. This could help maintain the current pace of growth in the market share of EVs. In fact, the funds in some autonomous regions have already run out, with the EV market share falling by 1.6pp compared to September,’ highlighted Azofra.
‘We are concerned about the lack of visibility we have regarding the continuity of aid in those regions or autonomous communities where the budget has been exhausted,’ added Faconauto communication director Raúl Morales.
Possible impact
A complete exhaustion of EV incentives would have a heavy impact on the wider new-car market. Excluding plug-ins from October’s overall figures would have resulted in monthly registrations growth of just 2.1%.
‘It is necessary to apply immediate measures and additional allocations to respond to buyers until the end of the year. Any uncertainty around the purchase decision must be dispelled because we cannot afford for the market to lose momentum, just as it was starting to recover,’ stated Puche.
The end of a deduction in personal income tax for the purchase of EVs could also slow down Spain’s plug-in demand. The current regulation states that the vehicle must be purchased between June 2023 and December 2025.
‘Market developments highlight the urgent need to extend MOVES funds until the end of the year to avoid a sales shutdown. A situation that could worsen in January 2026, when the 15% deduction in personal income tax for the purchase of electrified vehicles also ends,’ commented ANFAC general director José López-Tafall.
EVs remain resilient
Despite incentive uncertainty, EV volumes continued to perform strongly against 2024 figures. Plug-in deliveries surged by 118.9% in October, reaching 21,690 units and a 22.4% market share, according to Autovista24 calculations.
This meant that, for the first time in 2025, year-to-date EV growth crept into triple-digit figures, recording a 100.2% improvement.
This was thanks to an extra 90,284 registrations compared to the same period in 2024. A total of 180,421 units were delivered in the 10-month period. Plug-ins accounted for 19% of the new-car market from January to October, up 8.1pp.
Yet, even with Spain’s surging EV growth, it is still behind other major new-car markets in terms of plug-in share. This includes France, Germany and the UK.
‘In 2025, electrification has taken a leap forward in Spain, motivated by the remarkable commercial effort of brands and the provision of purchase aids. However, although these figures are positive, they still place us below the European average: a 19% EV share in passenger cars compared to 25% in the EU,’ noted López-Tafall.
‘In addition, the current pace is still insufficient to meet the emission reduction targets for both passenger cars and commercial vehicles. This is not the time to settle, but to accelerate,’ he added.
PHEV surge drives EVs
For the seventh successive month, PHEVs were Spain’s best-performing single powertrain in terms of registration growth. Volumes soared by 145.5% in October to 12,621 units, according to Autovista24 calculations. Yet, after a peak improvement of 178.9% in July, growth has slowed in every month since.
On a more positive note, the technology’s market share rose by 6.8pp to 13%. This uptick was less pronounced in the cumulative figures. The powertrain accounted for 10.4% of overall deliveries compared to 5.7% during the first 10 months of 2024. Meanwhile, volumes soared by 109.6% to 99,283 units.
Meanwhile, BEVs enjoyed a year-on-year increase of 90.2% in October, with 9,069 units. This was an improvement from September’s 59.7% increase. All-electric models captured 9.4% of total volumes, up from 5.7%.
The powertrain’s share in the year-to-date reached 8.5%. This equated to a 3.3pp increase from October 2024. Volumes improved by 89.7% in the first 10 months of the year, thanks to 81,138 deliveries.
No respite for diesel
At the other end of the spectrum, deliveries of diesel-powered cars have dropped month to month, with October no exception. The fuel type endured a 28.6% fall in volumes to 5,459 units, according to Autovista24 calculations. However, this was diesel’s smallest decline since March.
This translated to a 5.6% share, down from 9.2%. It also marked the fourth time this year that the powertrain took a lower monthly share than the ‘others’ category. This grouping includes LPG-powered cars.
From January to October, diesel-powered models posted a 36.2% delivery decline to 52,697. It represented 5.5% of the market, down 4.5pp year on year.
‘In terms of technologies, the market continues to increasingly leave diesel aside, whose sales are residual. Individuals and companies are increasingly opting for hybridised or electrified models,’ commented Félix García, director of communication and marketing at ANFAC.
Petrol’s new low
Petrol-powered cars did not fare much better, with a third consecutive month of double-digit decline. A 19.6% fall equated to 22,299 registrations and a 23% market share, according to Autovista24 calculations. This signalled the fuel type’s lowest share so far this year and a 10.2pp drop from 12 months prior.
Between January and October, petrol-powered models suffered a 13.7% decline, with 273,235 deliveries. This was 43,531 registrations fewer than the same period one year before. In turn, its market share fell from 38.2% to 28.7%.
Adding together petrol and diesel volumes, internal-combustion engine (ICE) models faced a 21.5% drop in October. Meanwhile, the pair’s share slumped by 13.7pp to 28.7%. This was its lowest level of 2025, highlighting the continued switch by Spanish buyers to electrified models.
A total of 325,932 petrol and diesel-powered cars were handed over to customers from January to October. This marked an 18.4% loss in volumes.
Hybrids extra push
Hybrid powertrains have seen the greatest increase in terms of volumes of any powertrain across the first 10 months of 2025. Despite much lower overall growth than PHEVs or BEVs, an additional 84,499 hybrid models have taken to Spain’s roads so far this year, according to Autovista24 calculations.
This raised its total by 27.1% to 396,533 registrations in the year to date. It remains comfortably the most popular powertrain, accounting for 41.7% of total deliveries, up 4pp compared to the same period of 2024.
The technology saw a more subdued growth of 18.9% in October, equating to 41,792 units. In turn, its market share sat at 43.2%, up a modest 1.1pp.
Combining hybrids with the EV total, the electrified market continued to drive new-car volumes in Spain.
The powertrain grouping made up 60.6% of overall deliveries from January to October, up 12pp year on year. This was thanks to a 43.5% boost in volumes, with an extra 174,783 units handed over to customers compared to 12 months prior. This growth was reflected in October, with a 40.9% rise in registrations and a 65.6% market share.
October sealed a hat-trick of monthly growth for the French new-car market, with battery-electric vehicles (BEVs) pushing registrations forward. Will this momentum continue for the remainder of 2025? Autovista24 web editor James Roberts investigates.
The French new-car market recorded a third consecutive month of growth in October. Autovista24 calculations of figures published by PFA and AAA Data reveal that 139,519 models took to the country’s roads. This was 3,991 units more than in October 2024, equating to a 2.9% year-on-year upswing.
October 2025 contained the same number of working days as October 2024, highlighting the improvement in the French new-car market. The increase was not due to any offset in the available buying period, but due to genuine demand.
This monthly hat-trick has helped alleviate the country’s year-to-date deficit. Between January and October, 1,326,303 new vehicles were registered. This equalled a year-on-year decline of 5.4%, amounting to 75,132 fewer deliveries.
Just French fleet electrification?
Despite the negative cumulative figures, October’s strong showing helped reduce the longer-term negative trend. A 3.3% year-to-date drop recorded in February spiralled into an 8.2% dive in the first five months of the year. Since then, the market has been slowly improving.
Consecutive double-digit year-on-year BEV uptake from July onwards has been central to this growth, mainly driven by fleets. However, according to AAA Data, private purchases are beginning to have more of an impact on overall registrations. This is largely thanks to more favourable purchase incentives.
Both petrol and diesel registrations continued along an established trend of decline. On the other hand, the hybrid market, made up of both full and mild hybrid powertrains, continued to lead the way. Although the pair did see their lowest monthly share so far this year.
AAA Data stated that across all powertrains, private sales accounted for 51% of the market. Meanwhile, fleet sales captured 30% of the overall market.
Buoyant French BEV results
New incentive frameworks appear to be boosting BEV uptake in France. According to Autovista24 calculations based on PFA and AAA Data, the powertrain enjoyed a 63.2% delivery increase in October.
A year-best monthly volume of 34,110 units boosted the sector. This meant 13,211 more all-electric vehicles reached customers than in the same month last year. October’s BEV result also offered a 2,672 unit increase on September’s previous peak of 31,438.
With this positive uptick, the BEV market share reached 24.4% in October. This is the highest so far in 2025, and a 9 percentage point (pp) increase from October 2024.
Spanning the first 10 months of the year, 250,420 BEVs have taken to French roads, up 5.3% year-on-year. This is the first positive result for the powertrain in the year to date. Four months of positive BEV momentum has established a cumulative market share of 18.9%, up 1.9pp.
Incentives changing the BEV make-up
The French BEV market has traditionally been driven by fleets. While this channel remains a dominant driver, October saw a shift as individual buyers increasingly entered the market. According to AAA Data, registrations by individual consumers soared by 75%, compared to October 2024. This outpaced the already strong fleet registration growth of 66%.
This change has been assisted by improved purchase incentives. This included the ‘Coup de pouce’ bonus. As of 1 October, it provides an additional €1,000 for BEV purchases, provided the car is assembled in Europe and equipped with a European battery. This will remain available until 31 December.
‘The ecological transition is a lever for reindustrialisation,’ outlined Agnès Pannier-Runacher, minister of ecological transition, biodiversity, forestry, the sea and fisheries. ‘With this €1,000 increase in the ecological bonus, we are promoting electric vehicles whose batteries are produced in Europe and whose manufacture emits fewer greenhouse gases. It is a win-win measure for purchasing power, the climate and industry. It makes the electric car more accessible to the French, while supporting industry and employment.’
A favourable outlook?
This was complemented by the renewed social leasing programme on 30 September. This scheme is set to involve at least 50,000 eligible households.
‘Electric registrations to individuals accelerated significantly during the month and showed the first significant effects of the new purchase incentives,’ stated Marie-Laure Nivot, head of automotive market analysis at AAA Data.
‘The outlook for the coming months is becoming more favourable. The supply of electric models is increasingly in line with demand and their gradual arrival among second-hand professionals is contributing to the decline in average second-hand prices.’
Despite the apparent BEV gains, caution must be applied. While the new incentives seem to have immediately slowed the fall in BEV sales to private buyers, broader market struggles could be unearthed.
This includes the wider slide in popularity of new internal-combustion (ICE) purchases, and increased taxes on these vehicles. This could drive down overall new-car sales. Additionally, more stringent eligibility rules require a low-carbon production footprint. This could exclude many non-European-produced electric models from incentives.
Precarious plug-in share
The plug-in hybrid (PHEV) powertrain is no stranger to double-digit declines in France. October reinforced this dominant trend, with year-on-year declines recorded every month this year so far.
According to Autovista24 calculations, last month saw 9,323 PHEVs join the French car parc. This equalled a year-on-year slide of 14.4% and 1,569 fewer units. As a result, the PHEV market share stood at 6.7pp, a 1.3pp year-on-year drop.
Despite this lacklustre performance, October’s significant BEV success bolstered the monthly prosperity of plug-in vehicle registrations overall.
Combined, BEV and PHEV sales amounted to 43,433 units in the month, ensuring a 31.1% market share, up 7.6% year on year. However, the poor PHEV performance is stunting the plug-in market in the year to date.
Between January and October, plug-in cars captured a 25.1% share of the market. This marked a year-on-year increase of just 0.3pp and a volume decline of 4.4%.
Hybrid hotspot
In lockstep with most major European new-car markets, hybrids remain the dominant choice in France. Autovista24 calculations revealed that this trend continued in October, as the powertrain seized 42% of the domestic new-car market, a 1.6pp year-on-year increase. 58,633 of these units were registered in the month, equating to a 7% boost in sales and 3,845 additional vehicles.
Across the first 10 months of this year, 590,063 new hybrids left French forecourts. This underlined a significant 26.2% year-on-year increase, illustrating that hybrid popularity is well established in France.
In the same period, hybrids accounted for 44.5% of the French new-car market. This resulted in a year-on-year increase of 11.1pp. Although this appears healthy, it is below the trending increases seen earlier in the year.
Adding the dominant hybrid figures to BEV and PHEV numbers reveals an expanding electrified market share. Combining the three powertrains saw a total of 922,343 electrified vehicles reach French drivers between January and October. This was up by 13.1% from the same period 12 months ago.
A strong showing in October from hybrids and BEVs helped push the electrified market share to 69.5% in the month. This is a high watermark for the year, plus an 11.3pp year-on-year lift.
ICE in the firing line
New petrol registrations remained consistent in October. However, this was no cause for celebration.
The month matched September’s market share of 19.2%, with 26,742 registrations, according to Autovista24 calculations. This lagged behind the previous month’s total by 192 units. Year-on-year declines saw petrol 7.7pp in arrears.
Spanning the opening 10 months of 2025, petrol power popularity reached a new low. Occupying just 22% of the overall market, the fuel type has nosedived 8.7pp year on year.
Diesel witnessed a similar story in October, with sales hitting a new low for 2025. 5,807 new vehicles were registered, meaning a 33.7% year-on-year plummet in volumes. While this appears significant, it is not the largest drop. That occurred in March, with a 52.1% freefall.
Between January and October, the fuel type ended up with a 4.9% market share. This was just 1.3pp above the ‘others’ category, which includes superethanol (E85) powered vehicles, natural gas, and liquid-petroleum gas (LPG).
Combined petrol and diesel registrations continue to erode. The ICE share slumped to 26.9% after 10 months of the year, as 356,478 new vehicles were registered, 178,742 fewer than the same timeframe in 2024. This resulted in the ICE share slipping by 11.3pp year-on-year.
