EV Demand Powered Europe Car Market in May, Helping Chinese Brands Grow Share
By Reuters | 22 Jun, 2026

A sharp decline in petrol and diesel sales were more than offset by a surge in EV demand that allowed overall sales growth in May and an expansion of Chinese brands.

Demand for electrified cars continued to underpin growth in Europe's auto market in May, offsetting a sharp decline in petrol and diesel sales and allowing Chinese brands to expand their footprint, data from the European Automobile Manufacturers’ Association (ACEA) showed on Tuesday.

Total car registrations, a proxy for sales, in the European Union, Britain and the European Free Trade Association rose 3.6% to 1,152,523 vehicles in May. For the first five months of the year, registrations were up 4.5% compared with the same period in 2025..

Electrified vehicles dominated the market's momentum. Registrations of battery-electric (BEV), plug-in hybrid (PHEV) and hybrid cars climbed 39.1%, 13.2% and 8.2%, respectively, together accounting for more than two-thirds of all new vehicles registered in May.

"The market continued to benefit from robust consumer demand for a range of electrified technologies across key European markets, sustained by new and revised tax benefits and incentive schemes," the association said in a statement.

In contrast, demand for traditional internal combustion engines weakened sharply, with petrol and diesel sales falling by around 19% each.

LEGACY CARMAKERS CEDE GROUND TO CHINESE RIVALS

Legacy European carmakers lost ground amid the transition. Registrations at Renault , Stellantis and Volkswagen slipped between 1% and 3%, reflecting intensifying competition.

Chinese automakers, by comparison, posted striking gains. Leapmotor's sales surged 465.1% in May, while Chery and BYD jumped 244.1% and 136.6%, respectively. Among other manufacturers, Geely and SAIC recorded increases of 12.6% and 13.9%.

Tesla extended its rebound for a fourth consecutive month, with registrations soaring 107.9% to 28,610 units, marking a strong recovery after more than a year of declines.

(Reporting by Amir Orusov; Editing by Matt Scuffham)