More than 5.45 million electrified vehicles, including battery electric vehicles (BEVs), plug-in hybrid electric vehicles (PHEVs) and hybrids, were sold across Europe, China and the United States during the first quarter of 2026. While Europe delivered double-digit growth driven by stronger demand in its largest automotive markets, China and the United States recorded declines following changes to incentive programmes.
Europe remained the strongest-performing region among the three major markets tracked in the latest EV sales review by PwC. Total EV sales across the European Union, the UK and EFTA countries reached 2.43 million units in Q1 2026, representing a year-on-year increase of 18 per cent. BEV sales rose 26 per cent to 724,000 units, PHEV sales increased 32 per cent to 354,000 units, and hybrid sales climbed 11 per cent to 1.35 million units. Electrified vehicles accounted for 69 per cent of all vehicle registrations in the region during the quarter.
The automotive sector remains Europe's largest consumer of aluminium, accounting for approximately 42 per cent of all aluminium used across end-use industries in the region. Demand is being driven by vehicle lightweighting requirements and the rapid expansion of electric mobility. According to the study, the average aluminium content in a European passenger vehicle has risen from 121 kilograms in 2006 to 205 kilograms in 2022 and is projected to reach 256 kilograms per vehicle by 2030.
Much of this increase is linked to battery electric vehicles, where aluminium is increasingly used in battery enclosures, body-in-white structures, chassis systems and thermal management components. EV-specific applications alone are expected to account for nearly 54 kilograms of aluminium per vehicle by 2030, contributing significantly to the overall growth in automotive aluminium intensity.
An industry study projects European vehicle production at approximately 16.5 million units by 2030, of which nearly 9.9 million vehicles, or 60 per cent, are expected to be battery electric models. Meeting this production demand would require around 4.2 million tonnes of aluminium annually, compared with roughly 2.5 million tonnes consumed by the automotive sector in 2022.
As aluminium demand accelerates, recycled material is expected to play an increasingly important role. Recycled aluminium production in Europe already exceeds primary aluminium production by more than two times, while the automotive sector currently sources about 42 per cent of its aluminium requirements from recycled material. With aluminium recycling requiring only around 5 per cent of the energy needed for primary production, the availability of high-quality recycled metal is becoming a strategic factor in supporting Europe's vehicle electrification ambitions.
China recorded 2.24 million EV sales during the quarter, down 21 per cent year on year, while the United States registered 786,000 EV sales, a decline of 9 per cent. EV penetration stood at 46 per cent in China and 21 per cent in the United States.
Europe's big five markets deliver record first-quarter BEV sales
The strongest momentum came from Europe's five largest automotive markets—France, Germany, Italy, Spain and the United Kingdom—where BEV sales increased by 36 per cent year on year to approach half a million units. The quarter marked the highest first-quarter BEV volume ever recorded across these markets, with BEVs accounting for 19 per cent of total registrations.
Germany retained its position as Europe's largest BEV market by volume, recording 159,630 registrations during Q1 2026, up 41 per cent from a year earlier. France followed with 112,086 BEV sales, a 50 per cent increase year on year and the highest BEV market share among the five countries at 28 per cent.
Italy and Spain continued to expand from a smaller base. Italy's BEV sales surged 66 per cent year on year to 38,084 units, while Spain posted 27,224 BEV registrations, up 42 per cent. Although BEV market shares remained comparatively modest at 8 per cent and 9 per cent respectively, both countries have doubled their BEV penetration since the first quarter of 2023.
The United Kingdom registered 137,614 BEV sales in Q1, an increase of 14 per cent year on year, while remaining Europe's largest PHEV market. UK PHEV sales rose 47 per cent to 78,666 units, allowing the country to surpass Germany in quarterly PHEV volume.
Hybrids continued to gain ground across the region. Hybrid sales in the five largest European markets exceeded one million units for the first time in any quarter, reaching a record market share of 42 per cent. In contrast, internal combustion engine vehicle sales declined 21 per cent year on year, reducing ICE market share to 29 per cent compared with 93 per cent in the first quarter of 2019.
Beyond the major markets, Poland recorded Europe's fastest BEV growth rate at 73 per cent year on year, while Denmark's BEV sales increased 43 per cent. Norway remained the most electrified market globally, with BEVs accounting for 98 per cent of vehicle registrations during the quarter.
China's EV market cools after incentive reductions
China remained the world's largest EV market by volume, but the first quarter reflected the impact of policy changes introduced at the end of 2025.
BEV sales fell 20 per cent year on year to 1.319 million units, while PHEV sales declined 31 per cent to 690,000 units. Total EV sales reached 2.237 million units, down 21 per cent from Q1 2025. BEVs represented 27 per cent of all vehicle sales, while PHEVs accounted for a further 14 per cent.
The decline followed the phase-out of China's full new-energy vehicle tax exemption and revisions to the country's vehicle trade-in subsidy programme. The updated system replaced fixed-value rebates with a percentage-based structure, affecting affordability particularly in lower-priced vehicle segments.
Despite the softer quarter, the market showed signs of stabilisation toward the end of the period. According to the data, BEV market share reached 30 per cent in March 2026, one percentage point higher than in March 2025. Hybrids were the only electrified category to register growth, increasing 7 per cent year on year to 228,000 units.
However, market sentiment is anticipated to turn around with aluminium consumption in China’s automotive industry projected to grow from 3.8 million tonnes in 2018 to nearly 7.5-8 million tonnes by 2025.
US market remains affected by the tax-credit withdrawal
The US EV market continued to feel the effects of the federal EV tax-credit programme ending in September 2025.
BEV sales declined 23 per cent year on year to 233,000 units during Q1 2026, while PHEV sales fell 53 per cent to 39,000 units. Total EV sales stood at 786,000 units, down 9 per cent from the same quarter last year. BEVs represented 6 per cent of total vehicle sales and PHEVs just 1 per cent.
Hybrids again provided the strongest growth. Hybrid registrations increased 8 per cent year on year to 514,000 units, lifting hybrid market share to a record 14 per cent. Hybrid penetration has more than doubled since the first quarter of 2023.
While BEV and PHEV sales remained below year-ago levels, quarterly volumes were marginally higher than in Q4 2025, indicating some stabilisation following the sharp adjustment seen immediately after the withdrawal of incentives.
The North American automotive industry consumes approximately 3.7 million tonnes of aluminium annually. As the sales go down, it is evident that the demand for the metal from this specific end-user segment is going to come crashing down.
Tesla leads in Europe and the US as regional preferences emerge
Tesla retained a leading position in both Europe and the United States during the first quarter.
In Europe's five largest markets, the Tesla Model Y was the best-selling BEV with 29,149 units, followed by the Skoda Elroq at 17,381 units and the Tesla Model 3 at 15,825 units. The Renault 5 and Citroën e-C3 completed the top five with 15,555 and 14,953 sales respectively. The weighted average entry price among Europe's ten best-selling BEVs stood at EUR 30,600.
In the United States, the Tesla Model Y led with 78,591 sales, more than double the volume of the Tesla Model 3, which recorded 31,672 units. Toyota's bZ emerged as the third-best-selling BEV at 10,029 units, followed by Hyundai's IONIQ 5 at 9,790 units and Chevrolet's Equinox EV at 9,589 units. The weighted average entry price of the top ten US BEVs reached €36,400.
China's ranking reflected a different competitive landscape. The Geely Xingyuan led the market with 87,322 sales, narrowly ahead of the Tesla Model Y at 81,958 units. Xiaomi's YU7 entered the market strongly with 71,623 sales, while the Li i6 recorded 57,088 units. The weighted average entry price among China's top-selling BEVs was EUR 21,100, significantly lower than in Europe and the United States.
Global EV market closes the quarter with contrasting trajectories
The first quarter of 2026 highlighted the increasingly divergent paths of the world's major EV markets. Europe added 376,000 more EV sales than a year earlier and pushed EV market share close to 70 per cent. China remained the largest EV market by volume despite a 21 per cent decline in sales, while the United States continued to adjust to a post-incentive environment.
Across the three regions combined, Europe accounted for 2.43 million EV sales, China for 2.24 million and the United States for 786,000. Together, these markets sold more than 5.45 million electrified vehicles during the quarter, demonstrating that while growth rates may vary, electrification continues to represent a significant share of global automotive demand.
Information credit: https://www.strategyand.pwc.com/
Note: This is exclusive coverage by AL Circle and may not be reproduced, republished or shared without prior permission.
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