Europe: ICE collapses, EVs surge
Europe’s car market contracted 1.2% but battery EVs now account for nearly 19% of new registrations, while ICE sales plunged 23% in a single month—a rapid market shift that’s forcing lenders and captives to rewrite underwriting and residual models. The swing is compressing the lifecycle for ICE assets and accelerating EV‑specific product demand. (carscoops.com) (autogear.pt)
Germany and France are driving the latest rotation: BEV market shares in Jan–Feb reached about 22% in Germany and 27% in France, while corporate and fleet purchases—which account for roughly 60% of new EU registrations—remain a primary channel for electrification. (theicct.org) (theicct.org) ACEA’s January breakdown shows petrol registrations plunged roughly mid‑20s percent year‑on‑year and diesel registrations fell about 22%, confirming the rapid month‑on‑month slide in conventional powertrains that underpins the reported ICE collapse. (acea.auto) (acea.auto) Rating and advisory firms say residual‑value volatility is now material: Fitch flagged higher BEV concentrations as an RV risk for European lease ABS, while consultancies and industry reports recommend re‑calibrating RV and underwriting frameworks to reflect battery, software and policy drivers. (fitchratings.com) (fitchratings.com) Captive lenders and OEM finance arms are responding with product tweaks and incentives—Renault rolled out 0% finance across its EV range and Mobilize is packaging mobility and finance offerings—while captive joint ventures are securing dedicated credit lines to fund electrified fleets. (evpowered.co.uk) (evpowered.co.uk) Wholesale and floorplan lenders are tightening inventory controls and investing in audit/valuation tech as remarketers forecast a wave of off‑lease EVs in 2026–27; Solifi’s acquisition of DataScan last year is cited as a direct example of vendors beefing up inventory‑risk and audit capabilities. (autofinancenews.net) (autonews.com) Equipment‑finance and working‑capital lines are shifting toward EV infrastructure: the EIB and banks have green credit envelopes for charging networks (including a €35m Eleport loan), and BNP Paribas Leasing Solutions announced pan‑European charging finance partnerships to underwrite CPOs and fleet electrification. (eib.org) (eib.org) Solifi customer rollouts illustrate execution pathways lenders are adopting: a multinational captive went live on Solifi’s leasing stack for DACH retail and corporate leasing, Kawasaki Motors Finance deployed Solifi’s wholesale platform for dealer inventory financing, and Sunflower Bank migrated ABL operations to Solifi’s SaaS platform—moves that reflect demand for tighter RV controls, faster origination, and integrated inventory risk workflows. (solifi.com) (solifi.com)
