Bad news from the European new car market: registrations collapse in some countries
Sales in the European Union, Britain, Switzerland, Norway and Iceland
fell 3.5% to 961,382 cars in January 2026,
The downturn was sharpest in Norway, where new car registrations, a proxy for sales, fell about 76% compared to the same month in 2025.
Petrol car registrations fell about 26% compared to the previous January, shrinking dramatically in France, by 49%, and in Germany, by 30%. They went from accounting for almost a third of the market share in Europe to just over a fifth in the period.
In turn, electric vehicle registrations have grown:
- battery-electric cars by about 14%
- plug-in hybrid cars by 32%; and
- hybrid- electric cars by 6%.
Collectively accounted for 69% of new registrations, up from 59% in January 2025.
Registrations of Volkswagen, BMW, Renault and Toyota fell 3.8%, 5.7%, 15% and 13.4%, respectively, while those of BYD surged 165%.
Stellantis and Mercedes recorded gains of 6.7% and 2.8%, respectively.
U.S. automaker Tesla continued its downward trend with a 17% year-on-year decline, the thirteenth month in a row in which sales have shrunk, according to ACEA's data.
Europe's car industry is in the midst of a major transformation, with traditional car makers struggling to compete with cheaper Chinese models and with a now-delayed push towards decarbonisation.
They are also navigating an even more uncertain trade environment after most U.S. tariffs were ruled unlawful by the Supreme Court of the United States on Friday.
New Chinese brand in Hungary
Another Chinese brand is entering the Hungarian new car market. Sales of Geely models are scheduled to begin at dealerships in March or April, according to a statement released by the Hungarian importer, Geely Hungary, on Monday.
Ten to fifteen dealerships are expected to add the Geely brand to their portfolios by the end of this year, starting with two models, with a further two to be added within the first year.
Geely has been present in Hungary since spring 2025 with its Farizon light commercial vehicle brand.
Geely is China's second-largest electric vehicle manufacturer after BYD.
Geely Holding is growing rapidly. It has acquired 100% of Volvo Car Corporation shares, holds a stake in Aston Martin Lagonda and has established a joint venture with Mercedes-Benz to develop the Smart brand. Geely Holding has also partnered with Renault to develop powertrain technology.
Geely Auto Group owns several well-known brands, including Geely Auto, Lynk & Co and Zeekr. It is also a global strategic partner of the Malaysian car manufacturer PROTON. The group holds a majority stake in the Lotus luxury sports car brand.
While most of Geely's manufacturing facilities are located in China, it also has plants in the US, Belgium and Sweden. In the medium term, Geely Auto Group plans to establish one or two additional manufacturing facilities in Europe.
In 2025, Geely Auto sold 4.1 million cars globally, a 26% increase on the previous year, 3.2 million of which were Geely brand cars. The number of new energy vehicles (NEVs) sold reached 2.29 million.
Source: Reuters
Cover image (for illustration purposes only): Getty Images
