In a remarkable shift in European automotive trends, electric vehicles captured one-sixth of all new car sales this January, with total sales reaching 166,000 units – a 37% year-over-year increase. Despite this impressive growth in the EV sector, overall car market saw a 2% decline, dropping to just under a million units – the lowest since August 2024.
According to the European Automobile Manufacturers Association (ACEA), electric and hybrid vehicles now represent more than half of all new car sales. Hybrids lead the market with a 34.9% share, while traditional gasoline and diesel vehicles have fallen below 40%.
The EV market showed particularly strong growth in key European markets, with Germany seeing more than 50% increase, Belgium 37%, and the Netherlands 28%. However, France experienced a slight decline in EV demand.
Tesla, the world’s largest EV manufacturer, faced significant challenges, with sales plummeting 45% to just 9,900 vehicles. Their market share dropped to 1% from last year’s 1.8%. Meanwhile, Chinese manufacturers like SAIC Motor, with its MG brand, saw a 37% increase, selling 23,000 vehicles.
The European Commission is set to unveil new plans for the automotive sector in early March, as manufacturers grapple with Chinese competition and potential US tariffs. European automakers are seeking relief from emissions-related penalties, with some countries, including the Czech Republic, proposing to spread penalties over five years.