Finance
European car sales fall in January, petrol cars sharply decline
Published by Global Banking & Finance Review®
Posted on February 24, 2026
2 min readLast updated: February 24, 2026
Tags:Supply chains
Quick Summary
ACEA data shows Europe’s January car sales declined year-on-year as petrol models slumped, while EVs, plug‑in hybrids and hybrids rose. Norway saw the sharpest drop. Chinese brands like BYD advanced as Tesla extended its slide.
Europe’s January Auto Sales Slip as Petrol Models See Steep Drop
Feb 24 (Reuters) - New car sales in Europe fell year-on-year in January for the first time since June, weighed by declines in major markets including Germany, France, Belgium and Poland, data from the European auto lobby ACEA showed on Tuesday.
Key Market Declines
The downturn was sharpest in Norway, where new car registrations, a proxy for sales, fell about 76% compared to the same month in 2025.
Market Drivers and Powertrain Shifts
WHY IT MATTERS
Europe's car industry is in the midst of a major transformation, with traditional car makers struggling to compete with cheaper Chinese models and with a now-delayed push towards decarbonisation.
They are also navigating an even more uncertain trade environment after most U.S. tariffs were ruled unlawful by the Supreme Court of the United States on Friday.
BY THE NUMBERS
Sales in the European Union, Britain, Switzerland, Norway and Iceland fell 3.5% to 961,382 cars in January, ACEA's data showed.
Powertrain Mix Shifts
Petrol car registrations fell about 26% compared to the previous January, shrinking dramatically in France, by 49%, and in Germany, by 30%.
Petrol Share Drops Sharply
They went from accounting for almost a third of the market share in Europe to just over a fifth in the period.
In turn, battery-electric, plug-in hybrid and hybrid- electric cars were up about 14%, 32% and 6%, and collectively accounted for 69% of new registrations, up from 59% in January 2025.
Automaker Performance
Registrations of Volkswagen, BMW, Renault and Toyota fell 3.8%, 5.7%, 15% and 13.4%, respectively, while those of BYD surged 165%.
Winners and Losers
Stellantis and Mercedes recorded gains of 6.7% and 2.8%, respectively.
BYD Registrations Surge
Tesla’s Continued Slide
Brand Highlights
U.S. automaker Tesla continued its downward trend with a 17% year-on-year decline, the thirteenth month in a row in which sales have shrunk, according to ACEA's data.
(Reporting by Javi West LarrañagaEditing by Tomasz Janowski)
Key Takeaways
- •ACEA data shows Europe’s January car sales declined year-on-year across major markets.
- •Petrol registrations fell sharply, while EVs, plug‑in hybrids and hybrids increased.
- •Norway saw the steepest drop in new registrations following late‑2025 pull‑forward effects.
- •Chinese brands, notably BYD, grew rapidly as several legacy makers posted declines.
- •Trade uncertainty after a U.S. Supreme Court tariffs ruling adds pressure to the auto sector.
Frequently Asked Questions about European car sales fall in January, petrol cars sharply decline
1What is the main topic?
January car sales in Europe fell year-on-year, with petrol models dropping sharply as EVs, plug‑in hybrids and hybrids increased their market share, according to ACEA data.
2Which markets or brands stood out?
Norway recorded the steepest decline in registrations. BYD posted strong gains, while several legacy brands slipped and Tesla extended its year‑on‑year decline.
3What factors are influencing the downturn?
A shift toward electrified vehicles, late‑2025 pull‑forward effects, and heightened trade uncertainty following a U.S. Supreme Court ruling on tariffs are weighing on demand.
