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Electrified Cars Take Two-Thirds of Europe’s January Market as BYD Surges and Tesla Falls

Policy shifts plus rising Chinese competition are accelerating Europe’s powertrain transition.

A car drives past snow-covered cars parked in a car park after snowfall in Rzeszow, Poland, November 21, 2025. Agencja Wyborcza.pl/Patryk Ogorzalek via REUTERS
Europe’s January EV Sales Surge Leaves The U.S. In The Rearview Mirror: Sales
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Overview

  • Total new-car registrations across the EU, U.K., Switzerland, Norway and Iceland fell 3.5% to 961,382 in January, the first year-on-year drop since June, ACEA data show.
  • Petrol registrations plunged about 26% year over year, including 49% in France and 30% in Germany, while BEV, PHEV and hybrid models collectively reached roughly 69% of new registrations.
  • BYD’s regional registrations jumped 165% to 18,242 vehicles, lifting its market share to about 1.9%, according to ACEA.
  • Tesla’s registrations fell 17% to 8,075 units, marking a 13th straight monthly decline and a market share near 0.8%.
  • Legacy makers were mixed: Volkswagen, BMW, Renault and Toyota declined, while Stellantis grew 6.7% and Mercedes-Benz 2.8%; Norway saw a 76% drop tied to EV incentive cuts that took effect January 1.