As the global automotive market faces a prolonged electric vehicle (EV) slowdown, January saw a notable increase in EV sales across Europe.
Analysts attribute this growth to global automakers introducing new electric models to meet the European Union’s (EU) stricter CO₂ emission regulations, which took effect this year.
According to the European Automobile Manufacturers Association (ACEA), on Tuesday, new EV registrations in 31 European countries, including the 27 EU member states plus the UK, Iceland, Norway, and Switzerland, reached 166,065 units in January. This represents a 37.3% increase from last year’s period (120,966 units).
Germany, the EU’s largest market, led with 34,498 new EV registrations, a 53.5% jump from 22,474 units in the previous January. France followed with 19,923 units, down 0.5% from last year. Belgium (13,712 units) and the Netherlands (11,157 units) saw increases of 37.2% and 28.2%, respectively.
The surge in European EV sales is mainly due to the new environmental regulations.
Since January, new cars in Europe must not exceed an average CO₂ emission of 93.6 grams per kilometer. German automakers such as Mercedes-Benz, BMW, and Volkswagen face even stricter standards of around 90 grams per kilometer.
Manufacturers that exceed these emission limits face fines of €95 (approximately $100) per gram.
European automakers have been launching more affordable EVs and reducing prices since last year to avoid these penalties.
Renault reintroduced its compact hatchback, the Renault 5, as an EV last year, while Stellantis launched the electric Citroën e-C3 in the same category. Volkswagen reduced the price of its compact EV, the ID.3, to below €30,000 (approximately $31,511) at the end of last year.
Hyundai and Kia also expanded their EV sales in Europe with new models.
Hyundai launched the compact Casper Electric (locally known as ‘Inster’) in Europe during the second half of last year, while Kia introduced the small EV3.
In January, the EV3 set a monthly sales record with 50,005 units sold, while Casper Electric sold 868 units in the same month.
Building on the success of these new models, both Hyundai and Kia saw their European EV sales rise.
Hyundai’s EV sales in Europe reached 4,445 units in January, a 38.3% increase from 3,214 units in the same month last year.
Kia also experienced growth, selling 7,944 units, up 26.2% from 6,293 units in January of the previous year.
However, Tesla, the leading U.S. EV manufacturer, struggled with declining European sales during the same period. In January, Tesla registered 9,945 new vehicles, a sharp 45.2% drop from 18,161 units in the same month last year.
While this decline can partly be attributed to a temporary dip in sales ahead of the launch of the new Model Y Juniper (a refreshed version), some analysts suggest that growing discontent with Tesla CEO Elon Musk in Europe may have contributed to the sales drop.
On February 23, Musk publicly expressed support for the far-right party Alternative for Germany (AfD) ahead of the German elections, potentially alienating European consumers.