Global demand for new cars set to rise by 2026

STUTTGART: Global demand for new cars, including electric vehicles, could rise again in the coming years, according to a recent survey by consulting and auditing firm EY.

The study found that 40% of respondents intend to purchase a new car by mid-2026, an increase of seven percentage points compared to the previous year's survey.

EY surveyed 19,000 people across 28 countries, including 1,000 participants in Germany, with the survey conducted during the European summer.

Among those planning to buy a new car, 24% said they would likely buy an electric vehicle, marking a slight increase from the previous year's 20%.

However, petrol engines remain the most popular choice at 29%, while 33% of respondents showed a preference for hybrid and plug-in hybrid cars.

Diesel cars were the choice for 8% of respondents.

In Germany, 28% of those surveyed stated that they intend to purchase a new car within the next two years, a rise of five percentage points compared to the previous year.

Electric cars are more popular in Germany, with 26% of potential buyers favouring them, compared to the European average of 21%. Diesel cars also garnered slightly more interest, while hybrid vehicles were less popular.

Many consumers are delaying car purchases due to the current economic situation. Sales of the world's largest carmakers have recently dropped, and in Germany, new car registrations declined by 1% in the first nine months of the year, totalling 2.12 million, according to the industry association VDA.

Registrations for fully electric vehicles fell by 29% during the same period.