2026 Auto Market: EVs Up Despite 15% Overall Decline

Electric vehicle sales are surging but the French market remains under pressure with a 15% overall decline in February 2026. Premium manufacturers like BMW are doubling down on new electric lineups while Chinese brands like BYD and Zeekr prepare their pricing assault. The used car segment is becoming a refuge as new car prices continue climbing.

"Nearly two out of three new cars sold in Spain are now SUVs—a phenomenon spreading across all of Europe" — ANFAC (Spanish Association of Automakers)

EVs surge while overall volume collapses

Europe's auto market is undergoing intense transformation. In France, electric vehicle registrations jumped 28% in February 2026, but this growth fails to offset the broader collapse: overall volume plummeted 15%. Diesel vehicles continued their nosedive with -54%, while petrol dropped 48%.

This profound shift reveals a market in complete flux. Carmakers must juggle environmental regulations against customer demand, all while prices have climbed 25 to 35% since 2020.

BMW bets everything on the new i3

The Bavarian giant is rolling out its revolution with the BMW i3 2026, unveiled on March 18. This first all-electric Series 3 in history sits on the Neue Klasse platform and promises over 800 km of range.

The new i3 recycles the name of the city car that disappeared in 2022, but in a radically different positioning. It will face off directly against the Tesla Model 3 and upcoming electric versions of the Audi A4 (expected 2028) and Mercedes C-Class.

BMW is betting on a French market rebound in 2026 after confirming premium segment leadership with 87,788 registrations in 2023 (+31.2% for the BMW brand). Electrified models already represent 42% of group sales versus 26% across the entire market.

Chinese brands storm Europe

The Chinese offensive intensifies with Zeekr arriving in Spain and BYD Seal and Seal U launches. The Zeekr X starts at €37,990 with 446 km of range—an aggressive positioning that's rattling European carmakers.

Geely, Volvo's parent company, is rolling out its brands with the Starray EM-i, a plug-in hybrid SUV equipped with a Spanish engine to counter the BYD Seal U. This strategy aims to sidestep tariffs on vehicles imported from China.

When do these new models arrive?

The BMW i3 will be revealed on March 18, 2026 with deliveries starting in autumn. Zeekr confirms its Spain launch with an official distributor, paving the way for other European markets in coming months.

The BYD Seal U continues its European rollout with growing volumes, while Volvo banks on its V60's reliability against new electric sedans. The Swedish estate car benefits from Android Automotive integration and faster Qualcomm Snapdragon processors.

Used cars become refuge from sticker shock

With new car prices soaring, the nearly-new used market is booming. BMW is seeing strong used vehicle sales through its dealer network—a trend confirmed at Mercedes and Audi.

Leasing deals (LOA/LLD) are also gaining traction, letting buyers access electrified vehicles without the large upfront investment. The BMW 3 Series Touring PHEV rents from €329 per month.