Europe Car Registrations Drop 3.5% in January 2026 as EVs Rise

New car registrations in Europe declined in January 2026, marking the first year-on-year drop since June 2025, even as battery-electric vehicles captured a larger share of the market amid a broader shift toward electrification.

According to data from the European Automobile Manufacturers Association (ACEA), total registrations across the European Union, United Kingdom, and European Free Trade Association (EFTA) countries fell 3.5 percent to 961,382 units from the previous January. The contraction was driven by weakness in major markets, including a 6.6 percent drop each in Germany and France, and a steeper 76.3 percent plunge in Norway, where the end of government incentives contributed to the slowdown. Despite the overall decline, the transition to low-emission vehicles accelerated, with battery-electric cars rising 13.9 percent to account for 19.3 percent of the EU market, up from 14.9 percent a year earlier.

Hybrids maintained their position as the leading powertrain, holding a 38.6 percent EU market share, while plug-in hybrids saw a 32.2 percent increase. In contrast, non-hybrid gasoline and diesel vehicles experienced sharp falls, with registrations dropping 25.7 percent...