Stock Markets March 24, 2026

European New Car Registrations Tick Up in February as EV Momentum Continues

Overall sales rose modestly with battery and plug-in electrified models driving gains; Tesla ends long sales decline while domestic makers show mixed results

By Avery Klein
European New Car Registrations Tick Up in February as EV Momentum Continues

New passenger car registrations across the EU, Britain and the European Free Trade Association increased 1.7% in February to 979,321 units, driven by continued growth in electrified vehicles. Battery-electric, plug-in hybrid and hybrid models now make up roughly two-thirds of monthly registrations. Tesla reversed a year-long decline with an 11.8% rise in February, narrowly trailing BYD, while Volkswagen, Stellantis and Renault posted divergent results.

Key Points

  • Total new car registrations across the EU, Britain and EFTA rose 1.7% in February to 979,321 units, with two-thirds of those vehicles electrified - impacting auto manufacturers and suppliers that serve EV powertrains and batteries.
  • Tesla reversed a thirteen-month decline with an 11.8% increase in February, narrowly trailing BYD, whose sales more than doubled year-on-year; this development affects competitive positioning among electric vehicle makers.
  • Within the EU, combined BEV, PHEV and hybrid registrations rose to represent 67% of registrations, up from 58.5% a year earlier, influencing demand across the broader automotive value chain including charging infrastructure and component suppliers.

Automotive registrations in Europe recorded a small rebound in February after a dip in January, official industry figures show. Across the European Union, Britain and the European Free Trade Association, total new car registrations rose 1.7% year-on-year to 979,321 units for the month.

Electrified powertrains accounted for a substantial share of the market. Around two-thirds of vehicles registered in the reporting area were electrified - comprising battery-electric vehicles (BEVs), plug-in hybrid electric vehicles (PHEVs) and conventional hybrids.

Industry observers note regulatory shifts in the EU and Britain: governments are rolling back certain rules aimed at cutting CO2 emissions after lobbying from domestic manufacturers that cite profitability pressures on EV sales and competition from Chinese automakers. Despite that regulatory retrenchment, BEV and PHEV registrations kept rising, a trend the data attributes to the arrival of lower-cost models and national incentives that support EV adoption.

Environmental groups have highlighted another factor behind the increased share of electrified vehicles: some petrol models have been reclassified or repositioned by manufacturers as "mild hybrids," a move that may bolster statistics for electrified sales while delivering only modest reductions in emissions.


Brand-level shifts

Tesla ended a thirteen-month run of falling registrations with an 11.8% year-on-year increase in February, according to the industry data. The automaker’s February registrations remained slightly below those of BYD, whose monthly sales more than doubled compared with February 2025. Both Tesla and BYD held a 1.8% share of the market in the month.

Among prominent European manufacturers, Volkswagen’s registrations rose 2.2% in February, while Stellantis reported a 9.5% increase. Renault’s registrations fell 14.3% over the same period.


EU-level details

Within the EU specifically, total registrations increased 1.4% to 865,437 vehicles in February. Breakdowns by powertrain show BEV registrations up 20.6%, PHEVs up 32.1% and conventional hybrids up 10.1%. Collectively, those three categories represented 67% of the bloc’s registrations, up from 58.5% in February 2025.

The data illustrates a market still shifting toward electrified models even as regulatory and competitive dynamics evolve. The figures in this report reflect monthly registration activity and constitute a proxy for sales across the included markets.

Risks

  • Regulatory rollbacks in the EU and Britain - motivated by concerns about automaker profitability and competition from Chinese rivals - create uncertainty for long-term emissions policy, affecting manufacturers planning for future powertrain investments.
  • Reclassification of petrol models as mild hybrids may inflate electrified sales figures while delivering only modest emissions reductions, complicating policy and market assessments for environmental outcomes and for suppliers focused on full electrification.
  • Divergent performance among major automakers (rising registrations for some, steep declines for others) points to uneven demand and competitive pressure across brands, which could influence production planning and supplier contracts.

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