European Car Market Slows Down in January. Stellantis and Electric Vehicles Grow

The beginning of 2026 brought a cooling to the European automotive market. Data from ACEA indicates that 961,382 new vehicles were registered in the region comprising the EU, EFTA countries, and the United Kingdom, representing a 3.5% year-on-year decline. Particularly sharp braking was recorded in Germany and France (both down 6.6%), which experts attribute to uncertainty over tariffs and increasing price competition. Despite the overall downward trend, the electrified vehicle segment shows strong resilience. Sales of fully electric cars grew by 13-14%, and plug-in hybrids by nearly one-third. An unprecedented phenomenon is the expansion of the Chinese giant BYD, which increased its sales by over 170%, capturing nearly 2% of the market share. At the same time, Tesla recorded weaker results, shifting the balance of power in the premium EV segment. In 2023, the European Union approved regulations banning the sale of new combustion engine cars from 2035, initiating a rapid technological transformation of the industry.An interesting strategic reversal was announced by Lamborghini. The brand's CEO, Stephan Winkelmann, communicated the abandonment of the planned electric Lanzador model for 2028. The luxury car manufacturer intends to focus on hybrid powertrains, arguing that customers still prefer traditional high-power engines. This decision is seen as a signal of weakening demand for luxury electric cars in Europe. „It was a very expensive hobby. Our customers want V8 and V12 engines.” — Stephan Winkelmann In Poland and Spain, the market is performing better than the EU average, recording slight increases. At the same time, Italy and Spain are experiencing a boom in the used car market – in 2025, for every one new car, there were over two used cars, indicating a growing price barrier for zero-emission technology.