Electric Vehicles Dominate One in Five New Car Sales in Europe

Key Takeaway: Nearly 20% of all new cars sold in Europe last month were fully electric, surpassing combined sales of plug-in hybrids and diesel vehicles. This trend suggests that even without a full combustion engine ban, the shift to EVs is accelerating rapidly.

EV Adoption Surges Across Europe

Data from the European Automobile Manufacturers’ Association (ACEA) reveals that electric vehicles (EVs) captured a 19.7% market share in January 2026. This includes all 27 EU member states, the UK, Iceland, Liechtenstein, Norway, and Switzerland – representing the vast majority of European car sales.

• Growth Trend: EV share has risen from 16.7% in January 2025, indicating consistent growth as lower-cost models enter the market, such as the Renault Twingo and upcoming Volkswagen ID.2 Polo.
• Competition Intensifies: The pace of EV adoption means automakers may not need to rely heavily on combustion engines even after 2035, when the EU allows them to continue selling ICE-powered vehicles.

Combustion Engine Decline Accelerates

The shift to EVs is directly impacting traditional fuel types.

• Diesel’s Fall: Diesel sales continue to shrink, now accounting for just 7.2% of total sales.
• Hybrid Dominance: Hybrid vehicles remain popular, with a 38.5% share, while gasoline cars decline to 22.5%.
• PHEV Lagging: Plug-in hybrids (PHEVs) hold a 10.4% share, trailing behind pure EVs.

Volkswagen Leads the EV Market

Preliminary data from market researcher Dataforce shows Volkswagen remains the dominant EV seller in Europe.

• Volkswagen’s Lead: The German automaker registered 17,230 EV sales in January, with the ID.3 leading at 5,417 units, followed closely by the ID.4 and ID.7.
• Renault and Skoda Follow: Renault secured second place with 14,447 units (primarily from the 5 E-Tech), while Skoda rounded out the top three with 14,022 units, driven by the Elroq crossover.

Regulatory Pressure and Future Outlook

The EU’s emissions regulations and the approaching Euro 7 standards are pushing automakers to reduce CO2 levels.

• Emissions Targets: Automakers face a 55% fleet emissions reduction by 2030, escalating to 90% by 2035, compared to 2021 levels.
• Incentives and Affordability: Government incentives and the introduction of cheaper EVs, such as the planned Volkswagen ID.1 in 2027, will likely accelerate the transition.

Conclusion: Europe is rapidly moving toward an all-electric future, driven by both regulatory pressure and increasing consumer demand. While combustion engines still dominate at 80% of sales, the accelerating EV trend suggests that the automotive landscape will continue to transform dramatically in the coming years.