European Auto Sales Slide in January Despite Hybrid BoomEuropean Auto Sales Slide in January Despite Hybrid Boom

A jump in hybrid-powered-vehicle sales in Europe was not enough to offset a 2.1% overall slump in new registrations in January.

Hybrid vehicles surged ahead at the start of the year, accounting for 34.9% of the total market, while battery-electric vehicles saw their market share rise to 15%, up from 10.9% for the same month in 2024, but still far below European Union-mandated targets for automakers.

Meanwhile, internal-combustion-engine vehicles recorded a severe slump down to 39.4% of the market, compared with 48.7% for the same month last year.

Industry observers blame the slump on some automakers increasing ICE prices hoping to encourage BEV adoption. However, the danger is that consumers will just delay buying new vehicles and hold on to their existing vehicles longer.

Data supplied by the European Automobile Manufacturers Assn. (ACEA) shows overall sales in France, Italy, Germany and the U.K. were down from last year, with only Spain recording a year-on-year increase among top-selling nations.

European automakers are having to compete with unfairly state-subsidized BEVs imported from China despite EU tariffs that many in the industry are not harsh enough to level the playing field for domestic manufacturers.

At the same time, they are having to steel themselves in the face of threatened U.S. vehicle tariffs and are urging Europe’s trading body, the European Commission, to grant relief from potential zero-emission-vehicle fines that took effect in January.

The EU executive will present auto sector plans later this month following talks with automakers, unions and interest groups.

For January, new registrations of hybrid-electric cars increased 18.4%, boosted by significant growth in the four biggest markets: France, up 52.2%; Spain, up 23.5%; Germany, up 13.7%; and Italy, up 10.6%. This led to 290,014 units registered in the month.

Registrations of plug-in hybrid-electric vehicles declined, dropping 8.5% to 61,406 units. This decrease was primarily driven by significant reductions in key markets such as Belgium, down 66.6%, and France, down 54%. As a result, PHEVs now represent 7.4% of total car sales in the EU.

Automaker price discounts saw BEV sales grow 34% to 124,341 units, with three of the four largest markets in the region together accounting for 64% of all battery-electric car registrations. Double-digit gains were recorded in Germany, up 53.5%; Belgium, up 37.2%; and the Netherlands, up 28.2%, while France saw a slight decline of 0.5%.

ICE car registrations saw a significant decline of 18.9%, with all major markets showing decreases. France experienced the steepest drop, with registrations plummeting 28.2%, followed by Germany, down 23.7%; Italy, down 17%; and Spain, down 11.1%.

With 244,763 new ICE cars registered last month, the market share for gasoline dropped to 29.4%, down from 35.4% in January 2024.

At the same time, the diesel-car market declined 27% in January, resulting in a 10% market share. Double-digit declines were observed in most EU markets.