BYD’s European registrations jump 165% in January while Tesla falls 17%, marking Tesla’s 13th month of decline. Explore the shifting EV market now.
The European new‑car market kicked off 2026 on a quiet note. Registrations across the EU, the UK and the EFTA fell 3.5 % year‑on‑year, totaling 961,382 vehicles in January.
Tesla’s Continuing Downtrend
Against this backdrop, the American EV giant saw its registrations tumble 17 % to just 8,075 cars, trimming its market share to a modest 0.8 %—down from 1 % a year earlier, according to the European Automobile Manufacturers Association (ACEA). It also marks the 13th straight month of decline for Tesla in Europe, suggesting the slump is far from a temporary blip.
BYD’s Record Growth
Chinese newcomer BYD, however, turned the tables with a spectacular surge. The firm sold 18,242 vehicles in the same region—a 165 % increase compared with January 2025 (175 % growth within the EU alone). BYD’s market share jumped to 1.9 %, more than double Tesla’s current slice of the pie.
Other Manufacturers’ Performance
Renault wasn’t immune to the slowdown, posting a 15 % drop to 83,201 units. The decline mirrors Tesla’s percentage fall, even though Renault’s overall sales grew 4.4 % year‑on‑year. A steep 35 % slump at its Dacia brand weighed heavily on the group’s results.
Premium players also felt the pressure: BMW fell 8.7 % and Volkswagen slid 11.2 %. In contrast, Mini bucked the trend with an 11.2 % rise, while Skoda added 10.1 %.
Powertrain Trends
Electrification continued its upward trajectory. Battery‑electric vehicle (BEV) registrations rose 13.9 % to capture 19.3 % of the EU market in January, up from 14.9 % a year earlier. Plug‑in hybrids surged 32.2 %, while conventional gasoline cars plunged 25.7 % and diesel models dropped 22 %.
Country‑by‑Country Highlights
Germany and France both recorded a 6.6 % dip in total registrations, yet EV registrations climbed 23.8 % and 52.1 % respectively. Norway, long a leader in electric mobility, experienced a dramatic 76.3 % decline in overall registrations, largely due to the phase‑out of government incentives.
What This Means for the Future
BYD’s rapid ascent signals that Chinese automakers are becoming serious contenders in the European EV arena, while Tesla’s prolonged slide raises questions about its competitive strategy. As the continent accelerates toward greener mobility, the brands that can adapt quickly to policy shifts and consumer demand are likely to dominate the road ahead.