29 January 2026
Which powertrain helped grow the EU’s new-car market last year? How has the automotive industry reacted to a major new international trade deal? Plus, Tesla halts production of two models. Autovista24 special content editor Phil Curry analyses the biggest stories in The Automotive Update podcast.
In the latest episode, a look into which powertrains soared, and which ones stalled in the EU new-car market last year. Also, details of a major new trade deal between the EU and India. Plus, are electric vehicle (EV) sales in Spain on shaky ground?
Also in this week’s episode, Tesla plans to stop production of two models, and a look at Chinese carmaker Chery’s plans to manufacture vehicles in the UK.
Subscribe to the Autovista24 podcast and listen to previous episodes on Spotify, Apple and Amazon Music.
EV sales help foster EU growth in 2025
The EU new-car market ended 2025 on a positive note, with registrations up 1.8 % year-on-year across the 27 EU member states. This result was helped by six-straight months of volume increases to close out the year.
The latest figures from ACEA show that EVs, made up of battery-electric vehicles (BEVs) and plug-in hybrids (PHEVs), are playing an increasingly important role in the market. Across the full year, almost 2.9 million plug-in models took to EU roads, claiming around 27% of the market.
BEVs alone accounted for 17.4% of total deliveries in the year. However, new petrol models still accounted for a significant portion of registrations, taking over a quarter of the whole EU new-car market.
Hybrids, made up of both full and mild hybrids, dominated the EU’s new-car market in 2025. It ended the year as the most popular choice amongst buyers for the first time.
Spain stood out with double-digit new-car growth, helped by strong sales of EVs, boosted by incentives. Germany, the EU’s largest market, also saw a modest return to growth. Conversely, France and Italy both saw declines in new-car registrations for the year.
Problems for Spain’s new EV incentive framework?
In December, the Spanish government announced the ‘PlanAuto+’, otherwise known as Auto 2030 Plan, would replace the country’s long-standing MOVES incentive scheme for EVs. The new plan was set to begin at the start of 2026, however, the funding criteria has yet to be published.
This has sparked fears a funding vacuum could be created, with potential market stagnation.
Under the new framework, subsidies were set to be managed by the central government rather than autonomous regions. The new plan is set to provide €400 million in direct purchase subsidies for EVs in 2026. This would align the annual budget with previous MOVES funding allocations.
However, according to electrive, the release is being blocked by the country’s Ministry of Economic Affairs. This aim is to follow a path similar to France, where incentives are linked to a vehicle’s total CO2 footprint.
Initially, the Auto 2030 Plan was intended to prioritise EVs manufactured in the EU without excluding other models. However, the criteria are now set to be tightened further.
EU carmakers upbeat about India trade deal
ACEA has welcomed the conclusion of negotiations for a free trade agreement between the EU and India.
According to the automotive industry body, the deal will greatly help European automobile exports enter a market of four million passenger cars circumnavigating prohibitively high import tariffs of up to 110%.
The agreement does feature important restrictions such as quota limitations and residual tariffs that will limit the potential benefit to some extent. A full assessment of the detailed terms of the deal will begin in the coming weeks.
Meanwhile, India has become a top priority for Renault. This is due to the market’s potential for growth. The carmaker also sees increasing accessibility for EU firms after the trade deal, the French carmaker’s chief growth officer has said.
Tesla to pivot towards AI and scrap two models
Tesla is planning to scrap two models as the brand looks to accelerate a charge into robotics and artificial intelligence (AI).
The announcements came as Tesla’s fourth-quarter results highlighted the damage to the carmaker across the year
The Financial Times reported that Tesla is to end production of the premium Model S and Model X in the next quarter. Plans are also afoot to convert its California factory into a manufacturing hub for its Optimus robots. The company plans to invest $2 billion (€1.7 billion), in Elon Musk’s xAI business.
Chinese EV-maker Chery to enter UK
Chinese carmaker Chery could use a UK plant, owned by JLR, to manufacture cars in the country, according to the Financial Times.
The proposals would see Chery use an existing manufacturing facility to build its EVs in Britain, according to two people familiar with the discussions.
The UK has been actively courting Chery to make its vehicles in the country for the last few years, three people close to the talks added.
Chery’s Omoda and Jaecoo models are the fastest-growing Chinese brands in the UK. The country has attracted an influx of affordable vehicles from BYD and other Chinese carmakers in recent years. Many are discouraged by higher tariffs imposed by the EU on China-built EVs.
Chery recently entered the UK market itself, with the Tiggo 7, Tiggo 8 and Tiggo 9 models.
