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flag European new car sales dipped 3.5% in January 2026, led by declines in key markets and a surge in electric vehicles, as Chinese brands gained share and Tesla kept falling.

flag European new car sales fell 3.5% year-on-year in January 2026, the first decline since June, according to ACEA, driven by sharp drops in Germany, France, Belgium, and Poland, with Norway down 76%. flag Petrol car sales dropped 26%, reducing their market share to just over one-fifth, while electric and hybrid vehicles rose, collectively accounting for 69% of registrations—up from 59% in January 2025. flag Chinese automaker BYD surged 165%, while Volkswagen, BMW, Renault, and Toyota saw declines. flag Tesla’s sales dropped 17%, continuing its 13th straight monthly decline. flag The industry faces ongoing challenges from competition with low-cost Chinese models, delayed decarbonization, and trade uncertainty following a U.S. Supreme Court ruling invalidating most tariffs.

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