European electric car sales surge as US market sharply declines

Friday 24 April 2026 - 17:00

By: Dakir Madiha

European electric car sales surge as US market sharply declines

Electric vehicle sales in Europe rose strongly in the first quarter of 2026, while the United States recorded a steep contraction, underscoring a widening transatlantic divide in adoption trends. Data from the European Automobile Manufacturers' Association show that battery electric vehicle registrations across the EU, EFTA and the United Kingdom increased by 26 percent year on year, reaching 723,704 units. In contrast, figures from Cox Automotive indicate US sales fell by 27 percent to 216,399 units over the same period.

Within the European Union, battery electric vehicles expanded even faster, with registrations rising 32.5 percent to 546,937 units. Their market share climbed to 19.4 percent from 15.2 percent a year earlier. Hybrid vehicles remained the dominant powertrain, accounting for 38.6 percent of all new car sales with more than 1.08 million units. Plug in hybrids also gained ground, reaching a 9.5 percent share. Meanwhile, the combined share of petrol and diesel vehicles dropped to 30.3 percent, continuing a steady decline.

March provided the strongest momentum, with battery electric sales jumping 42 percent across Europe and exceeding 344,000 units. Growth was particularly pronounced in Italy, France and Germany, where registrations rose sharply. The acceleration reflects both structural policy support and shifting consumer behavior amid rising fuel costs.

The surge in Europe has been amplified by the energy shock linked to tensions in the Middle East. Disruptions in the Strait of Hormuz have pushed oil prices above 100 dollars per barrel, raising fuel costs across the region. Petrol prices in France and Germany have increased by around 17 percent, while diesel has risen by as much as 30 percent, making electric vehicles more economically attractive.

The US market shows the opposite trajectory. The expiration of a 7,500 dollar federal tax credit for electric vehicles in late 2025 has reduced demand significantly. EV market share dropped to 5.8 percent from a peak of 10.6 percent in the third quarter of 2025. Tesla retained a dominant position with more than half of total sales, but overall volumes declined across most manufacturers, including sharp drops for Ford, Volkswagen and Nissan.

Despite the downturn, analysts note that the sequential decline between the fourth quarter of 2025 and the first quarter of 2026 was more limited, suggesting the US market may be stabilizing at a lower level. The divergence between Europe and the United States reflects differences in policy incentives, energy prices and consumer response to market conditions.