Car and SUV registrations in Europe reached 831,201 units in January, a 2.6% decrease compared to 853,249 units in the same month last year, according to data published on Tuesday by the European Automobile Manufacturers’ Association (ACEA).
ACEA details that last month, vehicle sales dropped in three of the four major car markets in the European Union, with France (-6.2%; 114,673 units) leading, followed by Italy (-5.8%; 133,731 units) and Germany (-2.8%; 207,640 units).
Spain is the only country showing growth, up 5.3% in January (72,322 units).
Electric vehicles gain market share
By engine type, in January, battery electric vehicles (BEVs) accounted for 15% of the market share, compared to 10.9% in January 2024, making it the third most popular engine type in the European market.
Specifically, new electric car sales grew by 34% year-on-year, reaching 124,341 units.
Additionally, these vehicles increased in three of the four largest markets in the region, which together represent 64% of all electric car registrations.
Germany (+53.5%), Belgium (+37.2%), and the Netherlands (+28.2%) saw significant double-digit growth, while France experienced a slight decline of -0.5%.
Meanwhile, Spain registered 5,012 units, a 48.5% increase.
Hybrid electric vehicles (HEVs) took the lead and dominated almost 34.9% of the market, becoming the preferred option among EU car buyers.
HEV sales grew by 18.4% year-on-year, driven by significant growth in the four largest markets: France (+52.2%), Spain (+23.5%), Germany (+13.7%), and Italy (+10.6%).
This resulted in 290,014 units being registered in the first month of 2025.
Plug-in hybrid electric vehicle (PHEV) registrations, on the other hand, decreased by 8.5% in January to 61,406 units.
ACEA explains that this decline was mainly due to significant reductions in key markets such as Belgium (-66.6%) and France (-54%).
As a result, plug-in hybrid vehicles now account for 7.4% of total car sales in the EU, making it the fifth most popular engine type in Europe.
Meanwhile, the combined market share of petrol and diesel cars fell to 39.4% in January 2025, down from 48.7% a year ago.
Petrol car registrations fell by 18.9% year-on-year in January, with all major markets showing declines. France experienced the sharpest drop, with a 28.2% fall in registrations, followed by Germany (-23.7%), Italy (-17%), and Spain (-11.1%).
With 244,763 new cars registered last month, petrol vehicles’ market share dropped to 29.4%, compared to 35.4% in the same month last year.
Similarly, the diesel vehicle market decreased by 27%, resulting in a 10% market share for this engine type in January. Generally, two-digit declines were observed in most EU markets.
Volkswagen: The leading group in european sales
ACEA reports that the Volkswagen Group has started the year as the leading manufacturer, with its main brands (Volkswagen, Skoda, Audi, Cupra, Seat, Porsche, and others) registering 229,898 units, a 5.6% increase from January of the previous year.
Following behind is Stellantis, which, with several of its 14 brands, registered 162,506 units, a 17.9% year-on-year drop, and Renault Group, which registered 90,362 units, a 5% increase.
By brand, the top seller in the European market was Volkswagen, with 95,975 units, a 14.9% increase, followed by Toyota, with 65,794 units (-7.8%) and Skoda, with 52,549 units (-4.4%).
Despite the 34% increase in electric vehicle sales across the continent, Tesla’s registrations plummeted by 50%, with 7,517 units registered.
