European car sales rise 11% in March as electric vehicle surge offsets petrol and diesel slump

New car sales across Europe posted their strongest year-on-year gain in nearly two years in March 2026, driven by a sharp acceleration in battery electric vehicle purchases that more than compensated for continued declines in petrol and diesel car registrations, Reuters reported.

Total vehicle registrations across the European Union, Britain, and the European Free Trade Association (EFTA) rose 11.1 per cent to 1,581,169 units in March, according to data published by the European Automobile Manufacturers’ Association (ACEA). The gain is the highest recorded since April 2024, when sales rose 12 per cent year-on-year.

Registrations of battery electric vehicles (BEVs) jumped around 42 per cent in March, extending growth of approximately 15 per cent seen in each of the previous two months. The report noted this acceleration as a possible sign that consumers across Europe are moving away from internal combustion engine vehicles in response to fuel price increases triggered by the war in Iran. Germany, France, and Italy were among the markets where the shift was most pronounced, recording BEV registration growth of approximately 66 per cent, 69 per cent, and 72 per cent, respectively.

Plug-in hybrid vehicle sales followed a similar upward trajectory, rising nearly 32 per cent over the same period. By contrast, petrol car registrations fell about 10 per cent and diesel registrations declined around 14 per cent. Taken together, electrified vehicles — comprising BEVs, plug-in hybrids, and standard hybrids — accounted for roughly 70 per cent of all new car registrations in the region during the month.

American electric vehicle maker Tesla recorded an 84.3 per cent year-on-year surge in registrations, reaching 52,600 units in March. Tesla had returned to growth in February for the first time in more than a year and overtook Chinese rival BYD in March registrations, though BYD also posted a sharp increase of 147.6 per cent to 37,580 units.

Among established European manufacturers, BMW registrations climbed 15.4 per cent, while Stellantis, Volkswagen, and Renault posted more modest gains of 6 per cent, 4.8 per cent, and 3.4 per cent respectively.

The March data reflects a broader trend developing across Europe’s automotive sector as sustained fuel price pressures linked to the Middle East conflict continue to reshape consumer purchasing behaviour away from fossil fuel-dependent vehicles.