EU car sales drop to five-month low

(Sharecast News) - New car sales across the European Union dropped to their lowest in five months in January, with registrations falling year-on-year across the region's largest markets. New registrations for passenger vehicles totalled 799,625 across the bloc last month, down 17.0% from 963,319 in December, according to the European Automobile Manufacturers' Association (ACEA).

That was the lowest since August and 3.9% lower than January 2025, marking the first year-on-year decline for monthly sales since June.

The EU's four largest car markets all experienced significant declines year-on-year, with sales falling 6.6% in Germany and France, 16.2% in Italy and 33.8% in Spain.

Battery-electric cars accounted for 19.3% of all new sales across the EU in January, up from 14.9% the year before, while the market share of hybrid-electric cars increased to 38.6% from 34.9%. Plug-in-hybrids also showed strong growth, with their share of the market rising to 9.8% from 7.4%.

Meanwhile, the prevalence of new traditional combustion-engine models continued to decrease, with petrol cars accounting for 22% of the market, down from 29.5% last year, while diesel's share dropped to 8.1% from 10%.

"Hybrid-electric vehicles lead as the most popular power type choice among buyers, with plug-in hybrids consolidating their position in the market, underlining the importance of a technology-neutral pathway to decarbonisation," the ACEA said.

The ACEA, which also publishes data for non-EU markets in Europe, reported that registrations across the UK also fell 1.5% over the month to 144,127, though were still 3.4% higher than last January.