European new vehicle registrations reached 1.2 million units in July, recording a 4% year-on-year increase compared to the same month last year driven by a jump in electric vehicle registrations.
EV registrations rose by 51% YoY to 279,000 units in July, now accounting for one-in-four new vehicles, according to latest data from Jato Dynamics emailed to WardsAuto on Aug. 28.
That said, while EV registrations increased market share YoY from 17.2% to 24.9%, automakers are still benefiting from a three-year delay by the European Commission in meeting mandated EV targets.
The Skoda Elroq, Volkswagen ID.4 and Renault 5 were the top-selling electric models in the EU in July, according to Jato, highlighting how a growing number of mainstream EVs are driving demand across Europe.
Germany remained the region's largest market with 268,000 EV registrations, while the tariff-free U.K. and also Poland were among the strongest performers, both growing by 12%. Registrations declined in Belgium and the Netherlands.
Northern and Western European markets continued to lead EV adoption, while hybrids remained more prominent in Southern and Eastern Europe.
Plug-in hybrid new vehicle registrations performed strongly, rising by 16% to 128,800 units. Hybrid registrations increased by 7% to 145,300 units, while mild-hybrid volumes remained broadly stable at 252,300 units.
However, registrations of conventional internal combustion engine vehicles fell by 22% to 302,100 units. ICE share of the European market declined from 35.9% in July 2025 to 26.9% in July 2026.
On a brand basis, Volkswagen remained Europe’s most-registered, despite volumes falling by 4% to 118,700 units. Skoda retained second place with 74,800 registrations, down 3%, while Toyota registrations increased by 4% to 73,600 units.
Renault was among the strongest-performing volume brands, increasing registrations by 11% to 54,800 units. Mercedes-Benz grew by 5%, while Kia increased registrations by 4%. By contrast, Dacia recorded a 13% decline, underlining the advantage of brands with competitive electrified portfolios.
“The standout story in July wasn’t overall market growth, it was the speed of BEV expansion,” said Jato’s regional consultant for Europe, Steffen Michulski. “The winners are increasingly those with compelling EV line-ups, while combustion continues to move into the background,” he added.
