European car sales rose 1.7% in February 2026, led by EVs, as Tesla ends a 13‑month slump. Discover the market shift and what’s next – read more now.
Market Overview
After a sharp dip in January 2026, the European car market showed a modest recovery in February. According to the European Automobile Manufacturers Association (ACEA), new‑vehicle registrations across the EU, the United Kingdom and the European Free Trade Association reached 979,321 units, a 1.7% increase compared with the same month last year.
Electric Vehicle Momentum
Two‑thirds of the registrations were for electrified models – battery‑electric (BEV), plug‑in hybrid (PHEV) and conventional hybrid (HEV). The shift is fueled by a wave of more affordable EVs and a series of government incentives aimed at speeding up the continent’s electrification goals.
Regulators in the EU and the UK are also reviewing stricter CO₂‑cutting rules after lobbying from domestic manufacturers who argue that profit margins on electric cars remain thin, especially when competing against low‑cost Chinese rivals.
Environmental groups note that some brands are re‑branding mild‑hybrid (MHEV) versions of gasoline models as “electrified”, which inflates the share of green‑type vehicles without delivering substantial emission cuts.
Tesla’s Turnaround
Tesla broke a 13‑month decline streak in February, posting an 11.8% increase in registrations year‑on‑year. The growth stopped a slide that began in December 2024. Nonetheless, Tesla’s February figures still slightly lagged behind Chinese competitor BYD, which logged more than double the growth rate of the previous year. Together, the two firms captured 1.8% of the European market in February.
European OEM Performance
Among traditional European manufacturers, Volkswagen and Stellantis showed gains of 2.2% and 9.5% respectively, while Renault suffered a steep 14.3% drop.
Overall EU sales rose 1.4%**, reaching 865,437 vehicles. Registrations of BEVs, PHEVs and HEVs jumped 20.6%**, 32.1%**, and 10.1%**, respectively, pushing electrified models to account for **67%** of all new registrations – a notable rise from **58.5%** a year earlier.
Key Takeaways
- EVs continue to drive growth, now comprising two‑thirds of all new registrations.
- Tesla ends a long‑running sales slump, but competition from BYD intensifies.
- European OEMs show mixed results; some gain momentum, others face steep declines.
- Regulatory tweaks and additional incentives could further accelerate the EV transition.
Stakeholders will be watching closely to see whether the February rebound signals a sustained upswing for the European automotive sector.