Overall car registrations in Europe, the UK, and the European Free Trade Area (EFTA) fell by 2.1% in January, according to data from the European Automobile Manufacturers' Association (ACEA). While fully electric vehicle (EV) sales surged by 37.3%, the sharp decline in sales of petrol and diesel mod
Tesla’s performance exemplified the downturn, with the U.S. electric carmaker’s sales in the region dropping 45.2% compared to January 2024. In contrast, Chinese competitor SAIC Motor, which owns the MG brand, recorded a 36.8% increase in sales.
ACEA data revealed that total car registrations in the EU, Britain, and EFTA hovered just below 1 million units in January—the lowest volume since August. In the EU alone, overall sales declined by 2.6%, even as battery electric vehicles (BEVs) and hybrid electric vehicles (HEVs) saw robust increases of 34% and 18.4%, respectively, although plug-in hybrid (PHEV) sales fell by 8.5%. Notably, electrified vehicles (BEVs, HEVs, and PHEVs) made up 57.2% of passenger car registrations in January, up from 47.4% the previous year.
Among major EU markets, Spain experienced a modest 5.3% increase in sales, whereas France, Italy, and Germany saw declines of 6.2%, 5.8%, and 2.8%, respectively. The UK also recorded a 2.5% drop.
The downturn in traditional combustion engine sales comes at a time when European carmakers are grappling with high production costs and intensified competition from Chinese manufacturers. Industry stakeholders are also bracing for potential U.S. tariffs on imported vehicles, as President Donald Trump has raised tariffs on aluminium and steel and threatened a 25% duty on autos, semiconductors, and other products.
In response to these challenges, the European Commission is set to present auto sector plans on March 5 following discussions with automakers, unions, and interest groups. While some manufacturers have increased the prices of petrol-powered vehicles in an attempt to steer consumers toward EVs, there are concerns that such measures could simply result in fewer overall car purchases. Meanwhile, electric transport advocates warn that any relaxation of CO2 emission targets could undermine long-term investments in EV infrastructure and compromise the bloc’s competitiveness.
As the market continues to adjust to rapid technological and regulatory changes, the coming months will be crucial for European automakers as they navigate shifting consumer preferences and mounting geopolitical pressures.
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Start your day informed with the AnewZ Morning Brief. Here are the top stories for 28 May, covering the latest developments you need to know.
European Commission President Ursula von der Leyen has said she discussed Ukraine’s path to European Union membership with President Volodymyr Zelenskyy, as Brussels signals key weeks ahead for accession talks.
Armenia’s upcoming elections are emerging as a defining geopolitical test, amid growing debate over the country’s future direction between Russia and the West, rising regional pressure, energy dependence concerns and shifting security alliances.
U.S. rapper Kanye West, now known as Ye, performed to a crowd of 118,000 people in Istanbul on Saturday night, marking his first concert in Europe in more than a decade, despite being barred from performing in several countries over past antisemitic remarks.
Iranian-made Yassin missiles were spotted mounted on Armenian Air Force fighter aircraft during Armenia's latest military parade on Thursday (28 May), drawing attention from defence observers and regional analysts.
The Philippines remains under a "severe threat" from China despite recent efforts by Washington and Beijing to ease tensions, Philippine Defence Secretary Gilberto Teodoro said on Saturday (30 May).
Thai rescuers say five people have been pulled alive from a flooded cave in remote Laos, where seven villagers became trapped after heavy rain cut off access underground.
Russia has recalled its ambassador to Armenia for consultations, citing Yerevan's growing rapprochement with the European Union. The move is seen as the latest sign of deteriorating relations between the longtime allies ahead of Armenia's parliamentary election on 7 June.
Malta’s Prime Minister Robert Abela has secured a fourth successive election victory for his Labour Party, extending its hold on power, though with a reduced majority compared with previous polls.
Nicaraguan indigenous leader and former lawmaker Brooklyn Rivera has died in state custody at the age of 73, according to local media reports citing his family.
At least 46 people, including six children, have been killed in a powerful explosion at a building used to store mining explosives in northeastern Myanmar, according to local media reports.
South Africa's preparations for the 2026 FIFA World Cup have suffered an unexpected setback after the national team failed to depart for Mexico as scheduled on Sunday (31 May) because some players and officials had not yet received their visas.
Five people have died after a mine shaft collapsed during an illegal mining operation in southwestern China, state media reported on Sunday (31 May), just days after the country's deadliest mining disaster in more than a decade claimed at least 82 lives.
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