EU Car Market Shifts Further to Electrification

European new-car registrations increased 5.3% in the first eight months of 2026, and the shift in powertrains is continuing toward low- and zero-emissions vehicles, according to data collected by the european Automobile Manufacturers’ Association.

Battery-electric vehicles accounted for 21.7% of new EU registrations, up from 15.8% a year earlier, while hybrids took 36.6%. Plug-in hybrids added another 10%. Together, electrified vehicles now dominate new-car sales, while the combined share of petrol and diesel vehicles has fallen to 29%.

More than 1.64 million BEVs were registered through August, with strong growth in France, Germany and Denmark. Hybrid registrations reached 2.76 million, while plug-in hybrids accounted for 758,000 vehicles.

At the same time, petrol registrations fell 18.6% and diesel registrations declined by the same percentage. Petrol’s market share dropped to 21.7%, from 28% a year earlier, while diesel fell to 7.3% from 9.4%.

The European vehicle fleet is still mostly internal combustion engine vehicles, giving engine oils, transmission fluids and other conventional automotive lubricants ample market value. However, future demand will tail off for conventional engine oils as older petrol and diesel vehicles are retired and replaced by electrified models.

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