European New Car Registrations Mixed in January, Electric Vehicle Demand Rises

New car registrations across the European Union presented a mixed picture in January, with an overall decrease of 3.9%, according to data released by the European Automobile Manufacturers Association (ACEA) on February 24, 2026. Although, demand for fully electric vehicles continued to grow, increasing by 24.2% year-on-year.

Regional Variations in Car Registrations

While the EU average saw a decline, several countries bucked the trend. Estonia experienced the largest percentage increase in new passenger car registrations, soaring by 155.9%. Malta (+38.6%) and Portugal (+16.1%) also recorded significant growth. Latvia saw a 12.4% increase, placing it among the ten EU countries with registration gains.

Conversely, Norway experienced a substantial drop in registrations, with a decrease of 76.3%. Romania (-33.5%), Bulgaria (-19.4%) and Belgium (-18.7%) also posted notable declines. Lithuania saw a slight decrease of 0.1% in new car registrations.

Across the 31 countries monitored by ACEA (including EU members, Iceland, Norway, Switzerland, and the UK), total new car sales decreased by 3.5% in January.

Growth in Electric Vehicle Adoption

Despite the overall downturn in car registrations, the demand for electric vehicles (EVs) continued its upward trajectory. EU registrations of fully electric cars increased by 24.2% in January. Across the broader 31-country scope tracked by ACEA, the increase was 13.9%.

Latvia also saw growth in EV registrations, with 99 new fully electric cars registered – a 17.9% increase compared to the same period last year. Lithuania experienced a more substantial increase of 65.2%, while Estonia recorded a decrease of 8.4% in electric car registrations.

About ACEA

The European Automobile Manufacturers Association (ACEA), established in 1991, represents Europe’s 15 major car, truck, van and bus manufacturers. ACEA serves as the primary lobbying and standards group for the automobile industry within the European Union. It evolved from the Comité des Constructeurs du Marché Commun (CCMC), founded in 1972, to provide a unified voice for the industry as Europe became more integrated.

ACEA’s members include BMW, DAF, Daimler Truck, Ferrari, Ford of Europe, Honda, Hyundai Motor Europe, Iveco, JLR, Mercedes-Benz Group, Nissan, Renault, Toyota Europe, Volkswagen Group and Volvo Group.

Looking Ahead

The automotive industry continues to navigate a period of significant transformation, driven by the shift towards electric vehicles, digital technologies, and evolving regulatory landscapes. ACEA plays a crucial role in shaping these changes and advocating for policies that support a sustainable and competitive European automotive sector.