European EV Demand Outpaces Expectations as BMW and Mercedes Scale Production

Automakers tied to traditional premium brands are discovering that demand for mainstream electric models is stronger than planning assumptions. Mercedes has ramped GLC production with additional shifts and extended workweeks after initial sales overwhelmed forecasts, pushing delivery windows into the latter half of 2026. BMW reports heavy pre-orders for its Neue Klasse-based iX3, prompting an accelerated production schedule at its new plant in Debrecen and an earlier-than-planned extra shift. Early ordering patterns indicate a meaningful share of buyers are switching brands, with roughly one in three iX3 customers classified as conquest sales. Technically both the iX3 and Mercedes’ GLC deploy high-voltage, 800‑volt electrical architectures and comparable dimensions and pricing, positioning them for direct competition in the premium mid-size segment. Despite these model-level successes, full-year results for 2025 show a divergence: BMW’s EV deliveries ticked upward while Mercedes’ electric volumes contracted, underlining that legacy product mixes still shape annual totals. On a regional level, Europe crossed a symbolic threshold in December when battery-electric registrations nudged past petrol for the month, underpinned by a large year-on-year increase in EV uptake and a sharp decline in gasoline sales. Chinese brands continued to expand in the region, contributing to competitive pressure and faster fill rates for popular models. Policy shifts in Brussels and debate over emissions enforcement have created uncertainty, but market behavior suggests consumers are responding to available product and incentives rather than to regulatory signals alone. For suppliers and factory planners, the immediate implication is a need for flexible capacity and faster ramp capabilities to capture demand spikes without causing prolonged backlogs. For investors and policymakers, these trends indicate that the EV transition in Europe is uneven but accelerating, with technological commonalities—such as 800‑volt systems—becoming table stakes in the premium segment. The short-term operational challenge is inventory and delivery management; the medium-term effect will be pressure on incumbents to synchronize product portfolios with evolving consumer preferences or risk losing more buyers to cross-brand defections.