Sales of petrol and diesel vehicles continue to fall in Europe, with the latest data from the European Automobile Manufacturers’ Association (ACEA) showing a sharp drop in registrations of traditional internal combustion (ICE) vehicles.

According to ACEA’s data released this week, overall new car sales in Europe were down 3.9 per cent in January compared to the same time last year with sales of petrol cars plummeting 28.2 per cent year-on-year, thanks to sharp decreases across all major European markets.

France saw the steepest decline with petrol car sales down 48.9 per cent, followed by Germany (down 29.9 per cent), Italy (25.5 per cent) and Spain (22.5 per cent). Sales of diesel-powered vehicles also fell sharply, declining by 22.3 per cent year-on-year. 

1

While the overall new car market saw a modest decline in January (down 3.8 per cent compared with last January), sales of hybrid, battery electric, and plug-in hybrid vehicles continue to grow significantly.

Data shows that 154,230 new battery electric vehicles (BEV) were registered in January, now accounting for almost 20 per cent (19.3) of new car sales in the EU, an increase of 5 per cent year-on-year. France recorded the biggest increase in BEV sales, up 52.1 per cent ahead of Germany’s 23.8 per cent increase. Conversely, Belgium (down 11.5 per cent and the Netherlands (down 35.4 per cent) posted strong declines.

Meanwhile, hybrid vehicles are now the leading choice of power type in the EU, with sales of 308,364 in January lifting overall market share to 38.6 per cent, helped by strong growth in Italy (up 24.9 per cent) and Spain (up 9 per cent), although Germany recorded a modest drop in hybrid sales, down 1.8 per cent compared with January last year.

Sales of plug-in hybrid (PHEV) vehicles also recorded sharp increases, with sales of 78,741 in the first month of 2026 accounting for 9.8 per cent market share, up from 7.4 per cent the previous year. Italy was the heavy-lifter in the PHEV space, with sales up 134.2 per cent year-on-year, followed by Spain (66.7 per cent) and Germany (23 per cent).

1

Of the other major European markets, the United Kingdom recorded modest growth in January, up 3.4 per cent compared with January 2025 with hybrid vehicles now accounting for 38.6 per cent of all new car sales while PHEVs increased market share to 12.9 per cent (up from 9 per cent the previous year).

Sales of petrol vehicles in the UK were down 4.2 per cent year-on-year while diesel recorded a modest 0.5 per cent decline. BEVs also recorded a small drop, down 0.7 per cent against January last year.

The shift in EU buyer preference largely mirrors that of Australia where sales of petrol vehicles declined 14 per cent in January while PHEV sales increased sharply, up over 170 per cent year-on-year to now account for 5.9 per cent of the new car market. Conventional hybrids accounted for 17.4 per cent of total sales in January while battery electric vehicles held a relatively steady share at 8.4 per cent.