As the U.S. has backed away from incentivizing electric-vehicle adoption, Europe is headed in the opposite direction.

First-quarter new-vehicle registrations in the European Union rose 4%, buoyed by a March tide of sales, according to the European Automobile Manufacturers Association, or ACEA.

The demand was spurred by new and tweaked government tax breaks and other incentives for electrified models, according to the trade group, which represents 17 automakers on the continent.

Purely electric vehicles took 19% of market share in the quarter, up from 15% a year earlier, ACEA reported. Hybrids stole the early 2026 show, though, taking a 39% share. But plug-in hybrid sales also rose, up about two percentage points to 10%.

Meanwhile, the combined gas and diesel segments fell sharply from 38% to 30%.

Most European countries offer some EV incentives, including breaks that encourage automakers to produce EVs, ACEA said. About half of EU member countries also offer EV charging infrastructure incentives.

The Trump administration pushed for the end of a federal consumer tax break for EV purchases and leases that had increased demand here. The credit expired on Oct. 1, followed by a drop in EV sales, though the U.S.-Israel war in Iran’s effect on gas prices may help reverse the trend.

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