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Europe's Car Sales Stall: A New Downturn Begins
24 Feb
Summary
- January saw a year-on-year decline in new car sales across Europe.
- Petrol car registrations plummeted, while electric and hybrid sales increased.
- BYD sales surged 165% as Western automakers experienced declines.
New car registrations in Europe declined in January 2026, marking the first year-on-year decrease since June 2025. This downturn was observed across several key markets, including Germany, France, Belgium, and Poland, with Norway experiencing the sharpest drop of approximately 76%.
Across the EU, Britain, Switzerland, Norway, and Iceland, total sales fell by 3.5% to 961,382 cars. The shift in consumer preference was evident as petrol car registrations decreased by about 26%, significantly impacting their market share. Conversely, sales of battery-electric, plug-in hybrid, and hybrid-electric cars saw substantial growth.
This period also highlighted a dramatic market reshuffling, with BYD's sales soaring by 165%. In contrast, established automakers such as Volkswagen, BMW, Renault, and Toyota recorded sales decreases, while Stellantis and Mercedes-Benz saw modest gains. Tesla continued its downward trend with a 17% year-on-year decline.
