BEV market grows despite Tesla dragging it down

Across the EU, EFTA, and UK, 189,062 battery-electric cars were registered in January 2026, up from 165,930 a year ago — a 13.9% increase. BEV market share in the EU reached 19.3%, up from 14.9% in January 2025, according to ACEA data.

France (+52.1%), Germany (+23.8%), and Denmark (+52.7%) drove much of the growth, while the overall car market contracted 3.5%.

The growth looks even stronger when you strip out Tesla’s numbers. Without Tesla, BEV registrations across the EU, EFTA, and UK were up 15.9% year-over-year — 180,987 units in January 2026 versus 156,197 a year earlier.

Tesla is not just failing to contribute to the EV transition in Europe; it is actively dragging down the growth rate.

BYD, in contrast, registered 18,242 vehicles in January 2026, surging 165% year-over-year and more than doubling Tesla’s volume in the region. The Chinese automaker now holds a 1.9% market share in the EU+EFTA+UK, compared to Tesla’s 0.8%.

Tesla’s problem runs deeper than the Model Y refresh

In Q1 2025, Tesla’s European sales collapsed roughly 37% year-over-year, and the company and its supporters blamed the production changeover to the refreshed Model Y “Juniper.” January 2025 was supposed to be the trough, a temporary dip caused by the transition between the old and new model.

That excuse no longer holds. January 2026 represents a full year after the Model Y refresh launched. The new model is in full production, widely available across Europe, and has been on the market for months. Tesla’s registrations still fell 17% compared to what were already considered terrible numbers.

In the EU specifically, Tesla registered 7,187 vehicles in January 2026 versus 7,305 a year ago, a small 1.6% decline. The steeper 17% drop in the EU+EFTA+UK figure is driven by EFTA markets, particularly Norway, where total new car registrations plunged 76.3% due to the end of tax exemptions. Tesla, which historically dominated Norway’s EV market, is feeling the impact disproportionately.

The rest of the market tells a different story

While Tesla contracts, the broader European car market is shifting rapidly toward electrification. Petrol car registrations in the EU crashed 28.2% year-over-year, with France down 48.9% and Germany down 29.9%. Diesel continued its decline at -22.3%. The combined share of petrol and diesel fell to 30.1% in the EU, down from 39.5% in January 2025.

Plug-in hybrids also surged 32.2% across the EU+EFTA+UK, reaching 99,654 units. Italy (+134.2%) and Spain (+66.7%) led the charge. Hybrid-electric vehicles remain the most popular powertrain choice at 38.6% EU market share.

Among manufacturers, Stellantis grew 6.7% to 164,436 units across the EU+EFTA+UK, with Fiat up 24.6% and Opel/Vauxhall up 12.7%. Volkswagen Group declined 3.8% but still commanded a dominant 26.7% market share. Mercedes-Benz edged up 2.8%, while BMW Group fell 5.7%.

Electrek’s Take

We thought Tesla’s January 2025 numbers in Europe were bad. At the time, the company was in the middle of a Model Y production transition, and we gave it the benefit of the doubt that numbers would recover once the refreshed model hit the market in volume. A year later, with the new Model Y widely available, Tesla’s European registrations are down another 17%. The problem is clearly not the Model Y refresh.

The European EV transition is accelerating, just not for Tesla. BYD registered more than twice as many vehicles as Tesla in January, and the gap is widening every month.

The boycott movement that gained momentum across Europe in 2025 appeared to have locked Tesla out of a significant part of the market, and now the end of subsidies in some markets is compounding Tesla’s demand slump.

Tesla needs to find the bottom in Europe soon, or it risks becoming irrelevant in one of the world’s largest EV markets while competitors like BYD, Volkswagen, and Stellantis fill the void.