Europe’s new-car market strengthened in July 2026, with registrations rising despite continued weakness in conventional combustion vehicles. The main source of growth was the battery-electric segment, which expanded sharply and captured almost one-quarter of all new registrations.

The latest figures also show how rapidly electrification is reshaping the rankings of both manufacturers and individual models.

European Registrations Rise 4%

New passenger vehicle registrations across the EU, EFTA countries and the UK reached 1,123,842 units in July 2026, an increase of 4% from 1,080,532 a year earlier. The total was also comfortably above the 1,024,806 vehicles registered in July 2024.

Germany remained Europe’s largest national market with around 268,000 registrations. Great Britain and Poland were among the strongest-performing countries during the month, with both markets expanding by 12%.

The overall increase, however, was driven primarily by electrified vehicles rather than conventional petrol and diesel models.

Battery-Electric Cars Jump 51%

Battery-electric vehicle registrations surged by 51% year on year to 279,819 units. Their share of Europe’s new-car market climbed from 17.2% in July 2025 to 24.9% in July 2026.

That means almost one in every four new passenger cars registered during the month was fully electric.

Plug-in hybrids also performed strongly, with registrations increasing by 16% to 128,844 units and their market share rising to 11.5%. Full hybrids grew by 7% to 145,317 vehicles, representing 12.9% of the market.

Mild hybrids recorded more modest growth of 3%, reaching 252,284 registrations and a 22.4% share.

Conventional combustion vehicles moved sharply in the opposite direction. Registrations fell by 22% to 302,127 units, while their share dropped from 35.9% to 26.9% in just one year.

Volkswagen Keeps The Lead

Volkswagen remained Europe’s largest car brand in July, recording 118,695 registrations despite a 4% decline compared with the previous year.

Skoda held second place with 74,826 vehicles, down 3%, while Toyota followed closely with 73,597 registrations after achieving 4% growth.

BMW recorded 67,734 units, broadly unchanged year on year, while Mercedes increased sales by 5% to 62,956 vehicles.

Renault delivered one of the strongest performances among the leading brands. Registrations climbed by 11% to 54,819 units, supported by an increasingly electrified model range.

Dacia faced a more difficult month, with registrations falling by 13% to 46,315 vehicles. The decline illustrates how quickly competitive conditions are changing as electric and hybrid models take a larger share of European demand.

Electric Models Reshape Rankings

The Skoda Elroq became Europe’s best-selling battery-electric model in July, with 9,940 registrations, up 14% year on year.

Volkswagen’s ID.4 followed with 8,609 units, representing 35% growth, while the Renault 5 reached 8,498 registrations after increasing by 50%.

BMW also performed strongly. The iX1 recorded 7,495 registrations, while the newer iX3 reached 6,916 units. Other models in the electric top ten included the Skoda Enyaq, Mercedes CLA, Volkswagen ID.7, Kia EV3 and Tesla Model Y.

The Tesla Model Y recorded 5,232 registrations, 2% below the previous year, while the Kia EV3 fell 4% to 5,500 units.

Affordable EVs Gain Momentum

July’s results suggest that electric vehicles are moving further into the European mainstream. Growth is no longer concentrated solely among premium models, with more accessible EVs increasingly appearing near the top of the sales rankings.

The Renault 5, Skoda Elroq and Volkswagen ID.4 demonstrate how important competitively priced electric cars have become as buyers gain more choice.

Europe’s July figures therefore reveal two markets moving in opposite directions: electric and electrified vehicles are expanding rapidly, while conventional combustion cars continue to lose ground. With battery-electric vehicles already holding a 24.9% share, the transition is becoming one of the defining forces in the European new-car market.