European Car Market in 2026 expands steadily. Q1 figures grew by 2.8%, with Italy (+9.2%) reporting the largest gains among top countries, followed by Spain (+7.6%). EVs transition remained strong, up by 26.4% to a 15.4% share.
Economic Environment
Europe’s 2026 economic outlook has weakened as rising energy prices and geopolitical tensions linked to the Middle East conflict push inflation higher while slowing growth. According to the European Central Bank Survey of Professional Forecasters, euro area inflation is now expected to average 2.7% in 2026, significantly above earlier forecasts, driven mainly by energy costs and some spillover into wages and services.
At the same time, economic growth is projected at a modest 1.0%, reflecting weaker demand, trade uncertainty, and the drag from higher energy prices. Despite the short-term inflation shock, longer-term inflation expectations remain anchored around the ECB’s 2% target, suggesting markets still expect price pressures to ease gradually after 2026.
Automotive Industry Trend and Outlook
Amidst geopolitical uncertainty, europe’s 2026 automotive outlook has weakened, though Q1 figures still indicate a trend of stable growth.
Overall, the European car market totaled 3,75 million units sold in Q1 of 2026, with a 2.8% gain in year-on-year volume compared to the prior year.
Looking at YTD data country-wise, Germany was still at the top (+5.4%), while securing a share of 22.1%. UK followed in 2nd with 16.4% (+5.9%). Italy closed the podium with 12.9% (+9.2%).
France ranked 4th with 10.7% (-2.1%), followed by Spain in 5th with 8% (+7.6%).
Turkey ranked 6th (-3.9%), followed by Poland in 7th (-0.9%), Belgium in 8th (-5.9%) and in 9th by Netherlands (-11.1%). Austria closed the Top 10 (+17%).
EV Market Trend and Outlook
EU’s EV Market keeps expanding as newer countries start to accelerate the transition. Overall, Q1 sales grew by 26.4% to a 15.4% share.
Still, proposed changes to EU emissions regulations could weaken the effective 2035 ban on ICE, with repercussions on the role of BEV in favour of hybrids and PHEVs.
Germany was still the sector leader, with a 19.6% share and a 37.4% increase. France gained 1 spot into 2nd, growing 14.2% to a 32.9% share while the UK closed the podium, growing by 21.8% with a 13.3% share.
Notably, Italy ranked into 4th growing 62% while Turkey closed the top 5, down by 2%.
Medium-Term Market Trend
The European automotive market, covering 43 countries from Portugal to Russia, remained the world’s third-largest car market in 2024 after Asia and the Americas, with 14.17 million new vehicle sales, representing a modest 0.9% increase compared with 2023.
Between 2014 and 2019, the region experienced consistent growth, with vehicle sales rising by more than 17% and peaking in 2019. This momentum was sharply interrupted in 2020 when the COVID-19 pandemic triggered a 21.2% market contraction due to lockdowns, supply-chain disruptions, and economic uncertainty.
The market recovered strongly in 2023, posting 16% growth as pent-up consumer demand and government support measures boosted sales, before stabilizing at roughly 14 million units through 2024.
At the same time, Europe’s electric vehicle market expanded rapidly. EV sales surged by 183% between 2014 and 2017, supported by advances in battery technology and favorable government policies. Even during the pandemic, EV demand remained resilient, nearly doubling in 2020. From 2020 to 2024, EV sales increased by approximately 300%, reaching a 15% share of the total automotive market. Momentum continued into 2025, when EV sales climbed to approximately 2.043 million units, driven by stricter emissions regulations, wider charging infrastructure, and growing consumer interest in sustainable mobility.
Tables with sales figures
In the tables below we report sales for the top 20 countries.
