Premium European BEV growth to outpace total market in 2026
- Matthias Schmidt
- 1 hour ago
- 2 min read
Exclusive: According to the latest European Electric Car Study, premium brands accounted for every fourth (27.2%) new BEV entering Western Europe during 2025, which was slightly higher than the the 21.1% they collectively commanded across the same region across all drivetrains.
We have forecast a significant 40% y/y increase of 251,700 units over the 629,000 units that entered the market during 2025, while the total regional BEV market is forecast to rise at half that rate according to the study.
A major factor in the forecast is a substantial new premium model offensive, particularly in the second half of the year.
New mid-sized, uncompromised software-defined BEVs enter the market from BMW (IX3/i3), Mercedes (GLC electric / C-Class electric), and Volvo (EX60), which can remain cash generators over their lifecycle thanks to over-the-air (OTA) updates and related chargeable services.
Volvo has said it expects to deliver 40,000 EX60s in 2026, starting in the second half of the year.
This new generation of premium 800V electric architectures is increasingly seeing charging times fall below 20 minutes for a 10% - 80% charge, making models cover most daily use cases, with peak on-paper range exceeding 800km.
These new-generation models are likely to benefit from long-term Tesla lease customers returning to the market who initially entered at a premium point, as well as from premium PHEV drivers to making the final transition to BEVs from ICE.
Lower-volume models will also add momentum, albeit with significantly fewer volumes, such as the full delayed EX90 and ES90 roll-outs from Volvo during 2026, with initial software issues having been rectified.
Jaguar Land Rover is also expected to bring two new BEVs to market in the course of the year, while Porsche will introduce the Cayenne BEV model.
Beneficial corporate benefit in kind tax rates in Germany which witnessed upper price boundaries raised to €100,000 last year means those company car drivers can now selected a BEV up to that value and fall into the 0.25% monthly benefit in kind tax rate of the value of that car compared to 1% for an ICE model, or 0.5% for a PHEV which is also likely to be a further driver.
Finally, the more compact, MMA-derived Mercedes CLA electric volumes, which ranked as a top-5 premium BEV across the region in the final quarter of the year, will likely also be a significant contributor to volume growth, given that it was only available since the second half of last year.
The MMA-based GLB electric will also join it during 2026, contributing to a stronger product offensive from Mercedes this year and limiting the negative effects of regulatory provisions.
Full details, data, forecasts, trends and background information can be found in our industry-leading studies, providing key context and trusted by stakeholders breaching industry divides.Â
Source: Schmidt Automotive ResearchÂ
*Western Europe 18 Markets: EU Member States prior to the 2004 enlargement plus EFTA markets Norway, Switzerland, Iceland, plus UK