In January 2026, the European new car market remained sluggish overall, with registrations declining by 3.5% year-on-year. Against this backdrop, Tesla sold only 8,075 vehicles in the EU, UK, and EFTA regions, a sharp 17% drop compared to the same period last year, reducing its market share to 0.8%—marking its thirteenth consecutive month of decline. In contrast, BYD saw sales surge by 165% year-on-year to 18,242 units, thanks to its combined offering of battery-electric and plug-in hybrid models, lifting its market share to 1.9%—more than double that of Tesla. Performance among other automakers was mixed: Renault Group’s sales fell by 15%, while Volkswagen and BMW declined by 11.2% and 8.7%, respectively. Meanwhile, Mini and Škoda posted growth despite the downturn. The shift toward electrification accelerated further, with all-electric vehicle (BEV) sales in Europe rising by 13.9% and plug-in hybrid electric vehicle (PHEV) sales surging by 32.2%, while internal combustion engine (ICE) vehicle sales shrank significantly. Germany and France reported BEV sales growth of 23.8% and 52.1%, respectively, whereas Norway experienced a dramatic 76.3% drop in total registrations due to the phasing out of government subsidies.