BRUSSELS, June 24 (Xinhua) -- Europe's vehicle market is entering a faster phase of electrification, with battery-electric vehicles (BEVs) expected to become the leading fuel type in passenger cars before 2030, according to the Dataforce EU Vehicle Market Insights Report 2026 released on Wednesday.
The report said the shift is being driven by tightening European Union carbon dioxide regulations, improving total cost of ownership and the continued expansion of charging infrastructure.
While internal combustion engine vehicles, especially petrol cars, remained the dominant fuel type in 2025, their market share is steadily declining as regulatory pressure increases and battery-electric offerings improve.
Dataforce expects BEVs to overtake petrol cars as the leading fuel type and exceed 50 percent of new registrations by 2031. Public charging points across Europe surpassed one million in 2025, although uneven infrastructure distribution and limited access to home charging in some regions remain short-term barriers.
Hybrid technologies are expected to continue playing a transitional role. Hybrid electric vehicles and plug-in hybrids offer operational flexibility and help manufacturers meet carbon dioxide compliance targets, especially in the years following the introduction of stricter regulations. However, Dataforce expects both technologies to plateau over time as BEVs increasingly become the default choice in private and fleet segments.
The outlook for internal combustion engine vehicles is weakening. Diesel is losing ground due to regulatory constraints, urban driving restrictions and rising fuel costs, while petrol cars are gradually ceding market share to electrified alternatives. The expected introduction of the EU's emissions trading system ETS2 in 2028 is also likely to raise fossil fuel costs and strengthen the economic case for electrification.
According to Dataforce, continued improvements in vehicle range, charging speed and affordability, combined with regulatory pressure, will establish BEVs as the backbone of the European passenger car market by the end of the decade.
Electrification is also gaining traction in commercial vehicle fleets, led by lighter commercial vehicles. In the light commercial vehicle market, the BEV share in true fleets rose from about 6 percent in 2022 to more than 11 percent in 2025. Dataforce said the increase was mainly driven by urban regulations, growing demand for last-mile delivery and a broader range of electric van models.
The Dataforce EU Vehicle Market Insights Report 2026 analyses current developments in the European passenger car, light and heavy commercial vehicle markets. The reports cover registration data from 30 European countries, and provide forecasts through 2031. ■
