European new car market August 2026: Estonia posts fastest growth in the EU

Key figures

Indicator	Value
EU new cars, Jan–Aug 2026	7,546,397 (+5.3%)
EU new cars, August 2026	708,211 (+4.5%)
Battery-electric share, EU Jan–Aug	21.7% (2025: 15.8%)
Battery-electric share, EU August	27.7%
Hybrid share, EU	36.6% (2025: 34.7%)
Petrol and diesel combined, EU	29% (2025: 37.5%)
Estonia new cars, Jan–Aug	13,071 (+58.6%)
Estonia new cars, August	1,479 (+50.8%)

The EU market keeps growing

According to the European Automobile Manufacturers' Association (ACEA), 7,546,397 new cars were registered in the European Union from January to August 2026, 5.3% more than a year earlier. August added 708,211 cars (+4.5%). January was the only month with a decline (−3.9%); the strongest growth came in June (+13.6%) and March (+12.5%).

ACEA attributes the steady demand to a wider range of electrified models and national support schemes, set against higher energy prices and geopolitical uncertainty.

Battery-electric cars have caught up with petrol

Battery-electric cars made up 21.7% of EU registrations in the first eight months, up from 15.8% a year earlier. Over the same period, petrol's share fell from 28% to 21.7%. In absolute terms, 1,641,333 battery-electric cars and 1,634,733 petrol cars were registered from January to August, putting electric cars 6,600 units ahead.

The gap was wider in August: battery-electric cars took 27.7% of the month's registrations, petrol 18.9%.

Hybrids (full and mild combined) remain the most popular powertrain at 36.6%. Plug-in hybrids rose to 10% (2025: 8.8%). Petrol and diesel combined fell to 29%, from 37.5% a year earlier.

Powertrain	Jan–Aug 2026	Change
Hybrid	2,759,718	+11.1%
Battery-electric	1,641,333	+44.9%
Petrol	1,634,733	−18.6%
Plug-in hybrid	758,082	+19.6%
Diesel	550,692	−18.6%
Other	201,839	−13.3%

Among the large markets, France (+74.2%) and Germany (+53.1%) drove electric growth. Petrol registrations fell in every major market, most sharply in France (−35.8%).

Estonia: 58.6% growth, the fastest in the EU

Estonia registered 13,071 new cars in the first eight months of 2026, 58.6% more than in the same period last year (8,243). That is the highest growth rate of all 27 member states. Estonia also grew fastest in August, with 1,479 registrations, up 50.8% on August 2025.

Part of the jump reflects a low comparison base. Estonia's motor vehicle tax, introduced in 2025, held back new car purchases last year, so this year's figures look high by comparison. You can estimate the tax on any car with the Autoportaal car tax calculator.

Estonian buyers clearly prefer hybrids. Autoportaal.ee calculations show hybrids made up 57% of new car registrations in Estonia, against 36.6% in the EU. Diesel holds 11.2% in Estonia versus 7.3% in the EU, and Estonian diesel registrations grew 77.1%. The battery-electric share stayed at 7.4% (967 cars), although volumes grew 63.9%.

In August, Estonia registered 174 battery-electric cars (46 in August 2025), lifting the monthly share to 11.8%.

Powertrain	Jan–Aug 2026	Change
Hybrid	7,449	+74.9%
Petrol	2,070	+22%
Diesel	1,463	+77.1%
Plug-in hybrid	1,122	+29%
Battery-electric	967	+63.9%
Total	13,071	+58.6%

Estonia and its neighbours

Country	New cars	Change	BEV share
Estonia	13,071	+58.6%	7.4%
Latvia	15,641	+1%	9.6%
Lithuania	32,902	+19.3%	7.8%
Finland	49,946	+4.2%	48.7%

In Finland, almost every second new car is now battery-electric. Latvia and Lithuania have electric shares similar to Estonia's.

Manufacturers: Volkswagen leads, Chinese brands grow fastest

Group	Share	Change
Volkswagen Group	26.5%	+1.3%
Stellantis	15.9%	+5.2%
Renault Group	10.4%	−4%
Hyundai Group	7.1%	−2.2%
Toyota Group	7%	−0.3%
BMW Group	6.9%	+4.8%
Mercedes-Benz	4.9%	+3.5%

The best-selling brand in the EU is Volkswagen (790,638 cars), followed by Škoda (511,997) and Toyota (495,085).

Chinese manufacturers are growing fastest. BYD registered 177,752 cars in eight months (+163%) and is ahead of Tesla (142,165) in the EU. Chery Automobile (Chery, Jaecoo, Jetour, Omoda) grew 250.9% and Leapmotor 426.8%. By Autoportaal.ee's calculation, BYD, SAIC Motor, Chery and Leapmotor together hold 6.9% of the EU market, up from 3.5% a year earlier. Leapmotor's European sales are run by a Stellantis-controlled joint venture.

Ford (−17.7%), the Hyundai brand (−12.7%) and Mitsubishi (−39.1%) declined. Jaguar registered just 2 new cars in the EU in eight months (2025: 934).

What this means for car buyers in Estonia

"Estonian buyers choose hybrids because under the current car tax they are the most sensible compromise. At the same time, one in five new cars in Europe is now electric, and some of them will reach the Estonian used market in a few years," said Ando Rahu, founder of Autoportaal.ee.

Autoportaal.ee sees three trends worth watching:

• Hybrids will dominate the Estonian used car market too, as today's new hybrids reach the second-hand market over the coming years.
• Fast-growing electric sales in Europe will widen the choice of used electric cars imported from Europe.
• Chinese brands are gaining share in Estonia as well, but their used-car price levels are still taking shape.

Frequently asked questions

How many new cars were registered in the EU in the first eight months of 2026?

According to ACEA, 7,546,397 new cars were registered in the European Union from January to August 2026, 5.3% more than in the same period of 2025.

What is the market share of electric cars in Europe in 2026?

Battery-electric cars accounted for 21.7% of new EU car registrations from January to August 2026 (2025: 15.8%). In August the share was 27.7%.

How many new cars were registered in Estonia in 2026?

Estonia registered 13,071 new cars from January to August 2026, 58.6% more than a year earlier, the highest growth in the EU. Hybrids took 57% and battery-electric cars 7.4%.

Which carmaker sells the most cars in Europe?

Volkswagen Group is the largest manufacturer group in the EU with a 26.5% share. The best-selling brand is Volkswagen, followed by Škoda and Toyota.

Why is Estonia's new car market growing so fast?

The high percentage growth partly reflects a low base: Estonia's motor vehicle tax, introduced in 2025, reduced new car purchases last year. Registrations are recovering in 2026.

Data and methodology

This overview is based on data published by the European Automobile Manufacturers' Association (ACEA) on 24 September 2026, compiled from national automobile associations and manufacturers. 2026 figures are provisional and may be revised. Hybrids include full and mild hybrids; "other" covers fuel-cell, natural gas, LPG and ethanol vehicles. Shares for Estonia and its neighbours are Autoportaal.ee calculations based on ACEA data. Autoportaal.ee publishes this European new car market overview every month after ACEA releases its figures.

See also: Car tax calculator | BYD listings | Toyota listings