European car sales fell in January 2026, the first drop since June 2025. Learn the market drivers and future outlook. Read more now.
The European automotive market opened 2026 on a subdued note. New‑vehicle registrations in January fell year‑on‑year, marking the first decline since June 2025.
Overall EU Performance
According to the European Automobile Manufacturers Association (ACEA), the EU, the UK, Switzerland, Norway and Iceland together recorded 961,382 new cars in January 2026 – a 3.5% drop compared with the same month last year.
Country‑by‑Country Snapshot
- Germany: Registrations slipped, continuing a downward trend seen across major markets.
- France: New‑car sales fell sharply, with a 49% decline in gasoline models.
- Belgium and Poland: Both posted modest decreases.
- Norway: The most dramatic fall – registrations plunged about 76% versus January 2025.
Brand‑Level Highlights
Several OEMs experienced notable shifts:
- Volkswagen: -3.8% YoY.
- BMW: -5.7% YoY.
- Renault: -15% YoY.
- Toyota: -13.4% YoY.
- BYD: A surprise surge, registrations up 165%.
- Stellantis: Growth of +6.7%.
- Mercedes‑Benz: Up +2.8%.
- Tesla: Down 17%, marking the 13th consecutive month of decline for the American EV maker.
Fuel Shift: Gasoline vs. Electric
The biggest hit landed on gasoline‑powered cars. Overall gasoline registrations fell roughly 26% YoY, with France seeing a 49% drop and Germany a 30% slide. Consequently, the share of gasoline vehicles in Europe’s total market shrank from nearly one‑third to just over one‑fifth.
Conversely, electrified models continued to gain traction:
- Battery‑electric vehicles (BEVs): +14%.
- Plug‑in hybrids (PHEVs): +32%.
- Self‑charging hybrids: +6%.
Electrified cars accounted for 69% of all new registrations in January, up from 59% a year earlier.
Industry Outlook
Europe’s auto sector is in the midst of a deep transition. Traditional manufacturers face mounting pressure from low‑cost Chinese entrants and a lagging carbon‑neutrality roadmap. While gasoline sales contract, the rapid rise of electric and hybrid models suggests a reshaping of the market landscape.
Analysts expect the shift to accelerate as governments tighten emissions standards and consumers increasingly favor greener alternatives.
Stay tuned for further updates on how these trends evolve throughout 2026.