Europe Car Sales Drop in January After 7 Months

New car sales in Europe declined in January for the first time since June, according to data released by the European Automobile Manufacturers Association. The fall was mainly driven by weaker demand in major markets such as Germany, France, Belgium and Poland.

Total car registrations in the European Union, Britain, Switzerland, Norway and Iceland dropped 3.5 percent year on year to 961,382 vehicles in January.

Sharp Fall in Norway

The biggest drop was recorded in Norway, where new car registrations plunged about 76 percent compared to January last year. Registrations are considered a key indicator of actual car sales.

Petrol Cars Lose Market Share

Petrol car registrations fell by around 26 percent compared to the previous January. The decline was especially sharp in France, where petrol sales dropped 49 percent, and in Germany, where they fell 30 percent.

As a result, petrol cars’ market share in Europe shrank from nearly one third to just over one fifth during the same period.

Electric and Hybrid Cars Gain

In contrast, demand for electric and hybrid vehicles continued to grow. Battery electric car registrations rose about 14 percent, plug in hybrid sales jumped 32 percent, and hybrid electric cars increased by 6 percent.

Together, these electrified vehicles accounted for 69 percent of all new car registrations in January, up from 59 percent a year earlier.

Performance of Major Automakers

Among major carmakers, registrations for Volkswagen fell 3.8 percent, BMW dropped 5.7 percent, Renault declined 15 percent and Toyota decreased 13.4 percent.

Chinese electric vehicle maker BYD recorded a strong rise of 165 percent in registrations.

Meanwhile, Stellantis posted a 6.7 percent increase and Mercedes-Benz saw registrations rise 2.8 percent.

However, U.S. electric vehicle maker Tesla continued its downward trend, with sales falling 17 percent year on year. This marks the thirteenth consecutive month of declining sales for the company.

Industry Facing Big Changes

Europe’s car industry is currently going through a major transition. Traditional automakers are facing strong competition from cheaper Chinese models, while also dealing with delays in the region’s shift toward cleaner and low emission vehicles.

The latest figures highlight the growing shift from petrol cars to electric and hybrid vehicles across Europe.