European Car Sales Slip in January as EVs Gain Ground
New car sales in Europe declined in January 2026 compared to the same period a year earlier. This marks the first monthly drop in Europe’s car market since June last year, according to data published মঙ্গলবার (February 24) by the European auto lobby European Automobile Manufacturers' Association (ACEA), Reuters reported.
Across the European Union, Britain, Switzerland, Norway and Iceland, a total of 961,382 new cars were sold in January, representing a 3.5 percent decrease compared to January of the previous year. The decline was most pronounced in major markets such as Germany, France, Belgium and Poland.
The sharpest drop occurred in Norway, where new car registrations fell by 76 percent in January. Although the country has shown strong interest in electric vehicles, demand for petrol cars has nearly disappeared.
Sales of petrol-powered cars fell by 49 percent in France and 30 percent in Germany. Overall, the market share of petrol cars, which was nearly one-third a year ago, declined to just over one-fifth in January.
In contrast, sales of battery electric vehicles (EVs), plug-in hybrids, and hybrid vehicles increased significantly. EV sales rose by 14 percent, plug-in hybrids by 32 percent, and hybrids by 6 percent. Combined, these three categories accounted for 69 percent of total registrations, up from 59 percent in January 2025.
Among major car manufacturers, sales at Volkswagen Group declined by 3.8 percent, BMW by 5.7 percent, Renault by 15 percent, and Toyota by 13.4 percent. Chinese carmaker BYD, however, recorded major success, with sales surging by 165 percent. Sales at Stellantis and Mercedes-Benz Group increased by 6.7 percent and 2.8 percent, respectively.
US electric car manufacturer Tesla continued to face a downturn. ACEA data showed that Tesla’s sales fell by 17 percent in January, marking the thirteenth consecutive month of declining sales.
Analysts attribute the decline to competition from affordable Chinese vehicles, delays in carbon emission reduction targets, and an uncertain trade environment.
DBTech/BMT/OR
