European car registrations increased 11% year on year in January as SUVs reached a record market share, accounting for more than half of all new cars sold on the continent.
In total, 907,000 cars were sold in EU markets plus the UK, Norway, Switzerland and Iceland in January, according to figures from industry analyst Jato Dynamics.
The growth was driven by the increasing uptake of SUVs, which made up 464,900 of the total number of registrations for a record market share of 51.3%. It’s the first time SUVs have formed more than half of all new car registrations in Europe.
“The recent EV boom drew attention away from SUVs, but due to their popularity with consumers around the world, they continue to play an important role in driving the slow recovery of the industry,” said Felipe Munoz, global analyst at Jato Dynamics.
But while the overall number of registrations improved year on year, the total figure is still down by around 8% compared with pre-pandemic 2019.
“We are seeing positive signs, but not enough to take the market back to the position it was in before the pandemic hit. The reality is that we might never see sales at that level again,” Munoz said.
Much of last year was heavily impacted by shortages of new vehicles (caused in part by the semiconductor supply crisis) as well as inflation and spiking energy prices – factors intensified by Russia’s invasion of Ukraine.
Sales of battery-electric cars (BEVs) remained healthy, increasing by 14% year on year to 92,700 units. The Tesla Model Y was January’s best-selling EV with 7174 units sold, followed by the Dacia Spring (4242) and Volkswagen ID 4 (3812).
However, Jato suggested that growth has started to slow, indicating a potential peak in EV sales. “Without affordable options from OEMs or more attractive incentives from governments across Europe, it seems that demand may be close to reaching a peak,” Munoz said.
The Dacia Sandero was Europe’s best-selling car in January, led by high demand in France and Italy. Volkswagen topped the brand rankings with 99,790 cars sold, followed by Toyota (71,737) and Skoda (50,845).
The best-selling cars in Europe in 2023
1 Dacia Sandero, 20,836, +18% year on year
The Dacia Sandero finished 2022 in second place and it has gone one better after the first month of 2023. It’s bolstered by its exceptional value for money, which will have resonated with buyers as the cost of living crisis hit across Europe. That it’s also a competitive supermini, with a spacious interior and decent handling, makes it an especially compelling buy.
2 Volkswagen T-Roc, 17,754, +29%
The Volkswagen T-Roc is always a popular choice in Europe and that looks set to continue for the foreseeable future. It ranked third last year, and its sales even outnumber those of the Volkswagen Golf. A recent facelift boosted its interior quality, addressing one of the few criticisms of this well-rounded crossover.
3 Toyota Yaris, 16,004, +52%
The fuel-efficient Yaris was a mainstay in the top 10 in 2022, evidently retaining its popularity four generations into its life. It’s still Toyota’s most successful and biggest-selling model in Europe, and a sporty GR performance variant continues to hold up as one of the finest hot hatches ever built.
4 Toyota Yaris Cross, 15,825, +52%
The Yaris’s stilted sibling finished January in fifth position, offering drivers a compact SUV alternative to the successful supermini. Toyota predicted the Yaris Cross would become its second-biggest seller after the Yaris, and it looks like it’s already on course to achieve just that.
5 Renault Clio, 14,146, +10%
The Clio was Renault’s best-selling car in 2022 and ended the year propping up the top 10, but the French supermini had a strong start, with 14,146 cars sold in January. The supermini has plenty to offer, including petrol, diesel and plug-in powertrains, and its tech has only become better with each passing generation.
6 Dacia Duster, 13,722, +28%
The second Dacia to feature in the top 10, the Duster is a capable, hardy and – most importantly – cheap model, capturing a significant share of the booming crossover market. It will soon be joined by the Dacia Bigster, a C-segment SUV spearheading Dacia’s push into larger, more profitable segments.
7 Peugeot 208, 13,275, -18%
The Peugeot 208 was 2022’s best-selling car in Europe, so it finished ahead of all of the other vehicles you see on this list. January wasn’t quite as strong this year, with its 12,275 sales figure representing a drop of 18% year on year, but expect it to challenge for that top spot once again as parts and semiconductor shortages appear to be easing.
8 Fiat/Abarth 500, 13,042, +45%
Is there a more recognisable small car than the Fiat 500? It’s been on sale since 2007 and it’s unlikely to be dropped any time soon. More recently, the model gained an electric variant with a battery size of up to 44kWh. Its range is pegged at 199 miles, but mild-hybrid and petrol models remain on sale as well. An electric version of the Abarth 500 hot hatch is also on the way, with sales beginning later this year.
9 Opel/Vauxhall Corsa, 13,003, +13%
After a successful year for the Vauxhall Corsa which saw it finish 2022 as Europe’s seventh best-selling car, it finishes January 2023 in ninth. Its position in the sales charts was helped by competitive pricing and financing plus a strong mix of petrol, diesel and electric powertrains.
10 Volkswagen Tiguan, 11,860, +43%
The largest car in January’s top 10 is the Volkswagen Tiguan, and it finished the month as Europe’s 10th best-selling car. The current generation of the German SUV has been on sale since 2016, but a fine combination of practicality and refinement continues to draw customers in. Expect an updated Tiguan to launch later this year.