Automotive sales in the European Union dropped by 3.6% year over year last month, according to preliminary figures released on Friday by market researcher Dataforce.
Several major automakers recorded sharp declines, with Dacia, Kia, Hyundai, Tesla, and Volkswagen among the hardest hit. On the other end, Chinese brands BYD, Leapmotor, Chery’s Jaecoo and Omoda more than doubled their sales in January.
Final data will be released by the European Automobile Manufacturers’ Association (ACEA) later this month.
Powertrain Mix
Dataforce reported that sales of battery electric vehicles (BEV) rose by around 14% compared to January 2025, a relatively modest increase given that automakers are in the second year of a three-year period in which they can average their emissions to meet stricter EU CO2 targets.
Plug-in hybrid vehicles (PHEV) accounted for 98,042 registrations — a jump of approximately 32%.
That figure nearly matched diesel’s 105,949 units, supporting automaker claims that plug-in hybrids are displacing diesel, particularly among company car buyers.
Full-hybrid deliveries grew 4.4% year-on-year, whereas diesel and gasoline sales fell 18% and 12%, respectively.
Notably, while nearly all automakers except BMW and Renault joined emissions pools in 2025, no pools have been announced yet for 2026. That could place extra pressure on some brands to meet electrification targets individually.
Biggest Declines
Dacia posted the sharpest decline among major brands, with registrations dropping around 35% last month — a loss of 16,513 units that represented nearly half of the EU’s total volume deficit for the month.
Renault Group executives pointed to logistics and production issues as well as more expensive hybrid powertrains during a Thursday earnings call, Automotive News reported.
The Dacia Sandero subcompact, which often ranks among the bestselling models in Europe, lost around 9,000 sales in January.
Both Hyundai and Kia lost over 8,000 registrations — 20% and 19% decreases compared to January 2025.
Volkswagen’s January sales dropped by roughly 11%, representing a loss of 12,615 units — the second-largest absolute decline after Dacia. Its Cupra brand declined 8.5% in a rare down month for the VW Group subsidiary.
Tesla saw its sales fall approximately 17% in January. In Norway, the automaker had its worst month in three years, with only 83 units sold — an 88% year-on-year decline.
The collapse followed Norway’s decision to end most EV incentives on January 1, which pulled forward sales into the final months of 2025.
Among other European brands, BMW fell 8.8%, Porsche continued its struggles with a 12% decline, and Volvo dropped 15%. Japanese brands Toyota and Nissan fell 8.0% and 17%, respectively.
Chinese Brands Lead Gains
The biggest winners were Chinese automakers.
Leapmotor, backed by Stellantis, registered 4,249 new vehicles last month — a 408% surge driven by the B10 compact SUV.
BYD accounted for 17,630 registrations, up 173%. Chery’s Jaecoo and Omoda brands jumped 365% (7,193 units) and 197% (6,596 units), respectively.
Among European legacy brands, Fiat posted a 24% year-on-year rise powered by the Grande Panda small car on Stellantis’ Smart Car platform.
Two other Stellantis brands on the same platform — Citroen and Opel — each grew 13%.
Skoda’s registrations increased 9.7%, and Renault’s rose 5.2%, with both handily outperforming the broader market.
2025 in Context
The January decline follows a modest recovery in 2025.
According to data released by the ACEA last month, a total of 10,822,831 vehicles were registered in the EU last year — a 1.8% increase from 2024.
Battery electric vehicles achieved a 17.4% market share in the EU in 2025, totaling 1,880,370 units, up from 13.6% the year before.
Plug-in hybrids reached 1,015,887 registrations for a 9.4% market share, up from 7.2% in 2024.
Hybrid-electric cars accounted for 3,733,325 units, representing 34.5% of total EU registrations in 2025 and remaining the preferred choice among consumers.
The combined market share of petrol and diesel vehicles fell to 35.5%, down from 45.2% in 2024.
