EVs

The EU’s new car market maintained steady growth through the first four months of 2026, with nearly 3.8 million vehicles registered, up 4.2% from the same period in 2025. This is according to data published on Wednesday by the European Automobile Manufacturers’ Association (ACEA).

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The figures show a market increasingly dominated by electric and hybrid vehicles, helped by government incentives in major economies and growing competition from Chinese carmakers.

According to ACEA, between January and April 2026, battery-electric cars accounted for 19.7% of the EU market, up from 15.3% a year earlier. Growth was mainly driven by the bloc’s four largest markets, with Italy (+25.5%), Spain (+19.7%), Germany (+6.6%) and France (+2.3%) all recording gains.

In April alone, sales of battery electric vehicles were up by 37.7% in the EU from the same month last year, lifting their market share to 20.6% for the month.

Hybrid-electric vehicles remained the most popular single powertrain choice in April, up 12%, accounting for roughly 36.9% of the month’s sales.

Plug-in hybrids added 16.4%, capturing roughly a 9.8% share in April registrations.

On the other side of the ledger, petrol car registrations fell 16.3% to fewer than 218,500 units, while diesel dropped 17.1% to around 74,000.

Together, petrol and diesel cars accounted for less than 30% of vehicles sold across the EU in April.

European brands performance in 2026

Volkswagen Group retained its position as the bloc’s largest carmaker in the first four months of 2026, accounting for 26.7% of all new registrations, with just over one million units sold, up 2.9% year-on-year.

However, performance varied across the group. Skoda registrations rose 15.5%, and Audi gained 8.6%, while the core Volkswagen brand slipped 3.2%, losing ground across multiple segments.

Stellantis ranked second with a 17.1% market share and over 648,000 units, up a robust 7.8%, driven by a recovery at Fiat of over 32%, and strong gains at Opel and Vauxhall, which together rose 22% in registrations.

Renault Group was the weakest performer in the top three, declining 7.4% to around 384,250 units and accounting for a 10.1% market share, with Dacia registering a particularly sharp fall of more than 15%.

BMW Group and Mercedes-Benz posted gains of 3.9% and 3.8%, respectively, while Toyota and Hyundai Group both recorded modest declines of between 2.5% and 3.1%.

The Chinese surge

The most significant trend in April’s data was the continued rise of Chinese carmakers.

According to ACEA figures, BYD’s EU registrations more than doubled year-on-year in the first four months of 2026, surging 152.9% to more than 71,850 units.

Chery Automobile, through its Omoda, Jaecoo and Jetour brands, grew 267.1% to more than 48,350 units, while Leapmotor, distributing through its joint venture with Stellantis, soared 558.8% to over 28,700 units.

SAIC Motor, owner of the MG brand and the largest Chinese group by EU volume, added a further 10.4% to reach more than 77,000 units.

Combined, Chinese brands accounted for around 6% of EU car registrations between January and April 2026, compared with 3.2% in the same period a year earlier. Across the wider European market, including the UK and EFTA countries, Chinese brands accounted for a combined market share of roughly 7.3% over the same period, up from 3.7% a year earlier.

Tesla is encountering growing resistance in Europe as it seeks approval for its advanced driver assistance system known as Full Self Driving. While chief executive Elon Musk has expressed strong confidence that the technology will soon gain approval across the bloc, internal communications among regulators reveal a far more cautious and skeptical stance.

The system, currently marketed as Full Self Driving Supervised, allows vehicles to operate autonomously under certain conditions but still requires full driver attention. Approval in Europe is critical for Tesla as it attempts to recover market share lost over the past two years and expand its subscription based revenue model.

Early Approval and Wider Ambitions

The Dutch vehicle authority RDW granted initial approval for the system earlier this year. This decision has now been forwarded to the European Union for broader consideration, with discussions underway among member state representatives.

Tesla is aiming not only for approval of its current system but also for future deployment of fully autonomous robotaxis in Europe. Such ambitions depend heavily on regulatory trust in the safety and reliability of its technology.

Regulatory Concerns Across Europe

Despite the Dutch endorsement, regulators from several European countries including Sweden, Finland, Denmark, and Norway have raised serious concerns. These include the system’s tendency to exceed speed limits, its performance in icy and hazardous conditions, and the possibility that drivers may bypass safeguards designed to ensure attentiveness.

Officials have also questioned whether the branding of Full Self Driving could mislead consumers into overestimating the system’s capabilities. This concern reflects a broader issue in the automated driving industry, where terminology can blur the line between assistance and autonomy.

Safety, Environment, and Real World Challenges

European regulators are particularly focused on how the system performs under conditions that differ significantly from those in the United States. Winter driving, for instance, presents unique challenges such as icy roads, reduced visibility, and unpredictable obstacles.

Questions have also been raised about how the system would respond to unexpected hazards, including wildlife on roads. These concerns highlight the difficulty of deploying standardized automated driving technology across diverse geographic and environmental contexts.

Pressure, Perception, and Public Influence

Adding to regulatory unease is Tesla’s approach to public engagement. Officials have expressed frustration with the company’s encouragement of Tesla owners to lobby regulators for approval. In several cases, authorities reported being inundated with emails from supporters advocating for the technology.

While some regulators acknowledged that the system performed well in complex urban environments, others warned that public pressure could complicate an already rigorous evaluation process.

High Stakes Approval Process

For the system to gain EU wide approval, it must secure support from a qualified majority of member states representing a significant portion of the bloc’s population. No immediate vote is scheduled, but further discussions are expected in the coming months.

Approval is seen as a key factor in Tesla’s strategy to boost sales and profitability in Europe, especially as competition intensifies from other global and regional automakers.

Analysis

Tesla’s push for automated driving approval in Europe reveals a fundamental tension between technological ambition and regulatory caution. While the company frames its system as a breakthrough in safety and convenience, European authorities are prioritizing risk mitigation and consumer protection.

The skepticism is not merely bureaucratic hesitation but reflects deeper structural differences in regulatory philosophy. European institutions tend to adopt a precautionary approach, particularly in areas involving public safety and emerging technologies.

For Tesla, the challenge lies in bridging this gap. Securing approval will require not only technical validation but also greater transparency and alignment with regional expectations. For regulators, the task is to balance innovation with responsibility in a rapidly evolving sector.

Ultimately, the outcome of this process will shape not only Tesla’s future in Europe but also the broader trajectory of autonomous driving adoption across the continent.

With information from Reuters.