The number of new car registrations in the EU will increase in the first half of 2026, as the transition to electric vehicles will change the demand for steel.
The number of new vehicles registered in the EU increased by 5.7% in the first half of 2026 to 5,896,683 units, driven by growing demand for battery-powered electric vehicles and hybrid vehicles, which could change the pattern of steel consumption in the struggling automotive supply chain in the EU, according to the European Automobile Manufacturers Association, which released data on July 23
According to ACEA, battery-powered electric vehicles accounted for 20.7% of the EU market in June, up from 15.6% a year earlier, when 1,220,890 units were registered. According to the European Steel Manufacturers Association Eurofer, the switch to electrified powertrains is taking place as the European steel industry has been facing production declines in the automotive sector for six consecutive quarters. This indicates that developing technologies in the automotive industry are changing the requirements for materials, despite the fact that overall production activity remains low.
"The market continued to benefit from sustained consumer demand for a range of electrified technologies, driven primarily by market support measures," ACEA said in a statement. Hybrid electric vehicles are the leader among the most popular powertrains among buyers, while plug-in hybrids occupied 9.8% of the EU market.
Switching to electric vehicles typically requires different grades and amounts of steel than cars with traditional internal combustion engines. According to Eurofer, a mid-size car contains approximately 900 to 1,400 kilograms of steel, which is used in the body, powertrain, suspension and other components. Battery-powered electric vehicles often require modern, high-strength steel structural elements to compensate for the weight of the battery while meeting safety standards.
Problems in the steel sector
The automotive sector remains the weakest of the major steel-using industries in Europe, with output declining for six consecutive quarters and remaining well below pre-pandemic levels, Eurofer said in a June economic report. In the stern, after a slight 0.8% increase in the third quarter of 2025, production declined again in the fourth quarter by 1.3% due to a variety of uncertainties, including general weakness in the manufacturing sector and slower-than-expected EV adoption.
Eurofer is currently forecasting a further moderate decline of 0.2% in 2026, compared with the previous forecast of 0.9% growth, reflecting ongoing trade and geopolitical