European New Car Registrations: A Mixed Start to 2026

European new car registrations presented a mixed picture in January 2026, with an overall decline masking significant variations across individual countries and a continuing shift towards electric vehicles. According to data released by the European Automobile Manufacturers’ Association (ACEA), the European Union saw a 3.9% decrease in new passenger car registrations compared to January of the previous year. Across the 31 countries monitored by ACEA, the total decline was 3.5% [1, 2].

Regional Disparities

While the EU experienced an overall downturn, several countries bucked the trend. Estonia recorded a substantial increase in registrations, rising by 155.9%, alongside Malta (+38.6%) and Portugal (+16.1%). Latvia also showed faster growth than the EU average. However, significant declines were observed in Norway (-76.3%), Romania (-33.5%), Bulgaria (-19.4%), and Belgium (-18.7%). Lithuania saw a slight decrease of 0.1% [3].

Growth in Electric Vehicle Adoption

Despite the overall market contraction, the demand for battery-electric vehicles (BEVs) continued to rise. New fully electric car registrations in the EU increased by 24.2% year-on-year in January, and by 13.9% across the 31 countries tracked by ACEA [2]. Latvia registered 99 new fully electric cars, a 17.9% increase. Lithuania experienced a 65.2% rise in electric car registrations, while Estonia saw a decrease of 8.4% [3].

ACEA Data Coverage

ACEA’s data encompasses new car registrations in EU member states, as well as non-EU countries including Iceland, Norway, and Switzerland – all part of the European Economic Area – and Great Britain [1].

Industry Concerns

The European automobile industry continues to face challenges. In late 2025, ACEA raised concerns about potential disruptions to vehicle production due to ongoing issues with microchip supply [4].