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Europe’s Car Market Slips in January 2026 as EVs and Chinese Brands Gain Share

Electrified models now make up most purchases in a sharp turn toward new powertrains.

Overview

  • Registrations across the EU, EFTA and UK fell 3.9% year over year to 961,382, according to ACEA.
  • Battery-electric vehicles reached a 19.3% market share and hybrids climbed to 38.6%, while petrol and diesel combined dropped to 30.1%.
  • Chinese brands rose about 80% to roughly 70,000 sales for a 7.4% share; MG led with 18,537 deliveries (-3.8%) as BYD surged 165% to 18,242.
  • Stellantis grew 6.7% to 164,436 registrations for a 17.1% share, as Tesla (-17%), Renault (-15%), Toyota (-13.4%) and Volkswagen (-3.8%) declined; Mercedes gained 2.8%.
  • Industry analysts noted the market remains far below 2019 levels, intensifying debate over EU transition policy and competitiveness.