Europe’s new car market didn’t exactly start the 2026 race in a flurry of smokey wheelspins. Registrations across the EU, UK, and EFTA slipped 3.5 percent year-on-year to 961,382 units in January. But beneath that soggy headline number, one brand was busy throwing its own party.

And it wasn’t Tesla. Across the EU, UK, and European Free Trade Association (EFTA) regions combined, Tesla registrations dropped 17.0 percent to 8,075 cars in January. That left the American EV giant with a 0.8 percent market share, down from 1.0 percent a year earlier, according to data from industry body ACEA.

It was also Tesla’s 13th consecutive month of declining sales in Europe, a reminder that this is no short-lived dip.

Also: Tesla’s Sales Collapsed By Nearly 90% In The Land Of EVs

BYD, meanwhile, went into overdrive with its mix of EVs and hybrids. The Chinese brand shifted 18,242 cars across the same region, an impressive increase of 165.0 percent year-on-year (175 percent in the EU alone), and its share climbed to 1.9 percent, more than double Tesla’s slice of the pie.

Dacia’s Fall From Glory

Tesla was far from the only automaker to take a beating in January. Renault Group also had a bruising month, its sales falling 15.0 percent to 83,201 units. That is a slide not too far off Tesla’s in percentage terms, though the Renault brand itself was up 4.4 percent. It was Renault-owned Dacia’s disastrous 35 percent drop that ruined the overall picture.

BMW (down 8.7 percent) and the VW brand (down 11.2 percent) were also left licking their wounds, while sister companies Mini (up 11.2 percent) and Skoda (up 10.1 percent) gleefully rubbed salt in them.

One In Five Cars Now An EV

On the powertrain front, the shift to electrification keeps gathering pace. Sales of battery electric cars climbed 13.9 percent, meaning they now account for 19.3 percent of the EU market in January, up from 14.9 percent a year earlier. And plug-in hybrids climbed 32.2 percent while petrol registrations plunged 25.7 percent and diesel slid 22.0 percent.

Country by country, the picture was mixed. Germany and France both saw total registrations fall 6.6 percent, but their EV registrations jumped by 23.8 and 52.1 percent, respectively. And Norway, always an EV bellwether, endured a dramatic 76.3 percent drop in overall registrations, mostly due to the end of government incentives.

European Car Sales

ACEA: Figures for EU + UK + EFTA

January tested the resilience of China’s auto market, exposing fault lines for some brands while spotlighting the rare breakout success. Many domestic manufacturers reported sales declines, with BYD among the most notable names to feel the squeeze. Yet even in a cooling climate, certain models found remarkable momentum. None more so than the Xiaomi YU7.

The all electric SUV, positioned as a rival to the Tesla Model Y and styled with more than a passing resemblance to the Ferrari Purosangue, was the best-selling new vehicle in China last month.

Read: This Ferrari SUV Lookalike From China Makes More Power Than The Real One

According to figures shared by Autohome, it moved 37,869 units, comfortably ahead of the Geely Boyue L in second place with 34,176 sales. The Geely Geome Xingyuan followed with 29,007, while the Aito M7 secured fourth with 26,454 units.

The presence of two Geely models in the top 5 best-sellers reflects a strong month for the group, with sales up 1 percent year-on-year to more than 270,000 units. The M7 from Aito, backed by Huawei and Seres, also surged in popularity, as did other models from the brand, helping it deliver more than 40,000 vehicles, a surge of over 80 percent from January 2025.

Sales of the YU7 in China have remained strong in recent months. December saw 39,089 units sold, making it the third best selling new car in China at the time. That figure represented a clear rise from November’s 33,729 and October’s 33,662.

It has also moved decisively ahead of the Tesla Model Y, selling more than twice as many units. The Model Y ranked only 20th last month, with 16,845 sales, a result that would have seemed unlikely not long ago. In fact, it was China’s best-selling model in December.

Familiar Names Climb The Charts

Perhaps the biggest surprises came from Volkswagen. It ranked fifth in China’s top 20 best-selling cars last month, led by the Sagitar with 25,316 units sold. VW also sold 23,481 Lavidas, 21,330 Tiguan Ls, 20,799 Passats, and 19,306 Magotans. In addition, the Nissan Slyphy sold 24,209 units, indicating that not all hope is lost for legacy carmakers in the country.

Things weren’t so rosy for BYD. It sold 205,518 vehicles in China last month across its brands, a significant decline from the 300,538 in January 2025. Only one of its models entered the top 20, the Fang Cheng Bao Ti7, which ranked 18th with 17,116 units sold.

China New Car Retail Sales January 2026

Sources: Autohome, Carnewschina

Ever wished your family-friendly van could moonlight as a workhorse? Volkswagen Commercial Vehicles is narrowing the divide (quite literally) between passenger comfort and utility with a new factory accessory designed for the European market ID. Buzz.

Developed in collaboration with long-time partner Snoeks Automotive in the Netherlands, the fixed partition gives owners a way to convert the rear of their five-seat electric van into a proper cargo area, without sacrificing everyday practicality.

More: VW Spruces Up ID.Buzz Cargo With Factory Bodykit And Fake Windows

The new partition is mounted directly behind the second row and includes a window, preserving the ID. Buzz’s five-seat layout while creating a separate floor-to-ceiling cargo space much like the ID. Buzz Cargo variant.

Beyond safety, the partition keeps dirt, smells, and noise from the cargo area out of the cabin, while also helping the climate control system work more efficiently by reducing the volume of the space that needs to be heated or cooled.

The divider is made from Compax, a composite material known for being both lightweight and durable. To avoid a purely industrial feel, Volkswagen finished it in a high-grade soft-touch surface. There’s even a built-in storage compartment under the floor, designed specifically to hold the charging cable. Importantly, the setup doesn’t interfere with rear seatbelts or the operation of the side airbags.

More: VW’s New Van Shows Up In GTI Cosplay, But No One Told The Engine

The new accessory can be fitted to both the standard and long-wheelbase versions of the ID. Buzz. For the short wheelbase, it’s offered on the Freestyle, Pure, Energy, and Pro trims. For the longer model, it’s available on the Energy and Pro lines. In Germany, pricing starts at €1,856.40, or roughly $2,000 based on current exchange rates.

While the ID. Buzz remains part of VW’s European lineup, the electric minivan has skipped the 2026 MY in the US market, due to lower-than-expected demand. A return isn’t off the table, though. Volkswagen may bring it back in 2027 with more substantial updates aimed at attracting US buyers.

Volkswagen Commercial Vehicles

Spy photographers snapped the ID. Polo R-Line earlier today and now they’ve followed up with images of the real deal. We’re talking about the ID. Polo GTI, which was previewed by a concept in 2023.

Spotted virtually undisguised, the model looks pretty tame at first glance. However, there are a few telltale cues that separate the GTI from the regular model.

More: ID. Polo R-Line Is Shaping Up To Be The Poor Man’s GTI

One of the most notable changes is a unique front bumper, which features a pronounced air intake with a honeycomb mesh pattern. Moving further back, we can see sportier side skirts and what appear to be larger wheels. The latter have a two-tone design and are backed up by a braking system with red calipers.

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The boy racer upgrades continue out back, where there’s an extended spoiler and a revised bumper with a massive diffuser. The latter would appear more at home on an off-road focused crossover than a hot hatch.

The interior should largely carryover from the standard model, which means we can expect a 10.25-inch digital instrument cluster and a 13-inch infotainment system. They’ll likely be joined by a sport steering wheel and red accents. Customers can also expect a spacious boot that holds up to 43.9 cubic feet (1,243 liters) of luggage when the rear seats are folded down.

Volkswagen hasn’t been shy about details as they’ve previously revealed the ID. Polo GTI will arrive one year after the regular model and have a front-mounted motor producing 223 hp (166 kW / 226 PS). It will be powered by a 52 kWh nickel manganese cobalt battery pack.

Volkswagen has previously said the battery will provide a range of up to 280 miles (450 km), although the actual number could be lower on the performance variant. While that remains to be seen, the company has already confirmed a 130 kW DC fast charging capability.

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Camo season is clearly ending early for Volkswagen’s smallest electric hatch. Fresh spy shots show the upcoming ID. Polo testing in winter conditions, while wearing so little disguise it might as well not have bothered at all.

Sure, VW already showed us official photos of prototypes at the tail end of 2025, but those cars were wrapped like overenthusiastic Christmas presents. These new images are different. The sides are totally clean, giving us a proper look at the proportions, surfacing, and that neat rear door handle tucked into the window frame near the C pillar.

Related: VW’s ID. Polo Interior Brings Back Something You Thought Was Gone For Good

Up front and out back, there’s still a thin layer of visual misdirection, but not enough to hide the shape of the lower intakes or the basic bumper design. It all looks very production-ready and incredibly close to the ID.2 all concept from back in 2023.

Not Quite A GTI

Two cars appear in the photos, one white and one black. The darker car rolls on larger, sportier alloys, and both seem to wear subtle body add-ons. Think small roof spoiler, chunkier side skirts, and a deeper front lip. That points to R Line trims rather than the full-fat GTI, which VW has previewed separately, again in disguise form, with even angrier details.

Size-wise, this electric supermini is close to the current combustion Polo, but clever packaging and a long 2,600 mm (102.4 inches) wheelbase mean more interior room. Volkswagen says rear passengers get extra legroom, plus gains in headroom and cabin width.

Inside, drivers get to enjoy real buttons, warm materials, and some slick retro gauge cluster graphics, as VW itself recently teased.

Up To 223 hp

Power comes from front-mounted motors in three flavors: 114 hp (116 PS / 85 kW), 133 hp (135 PS / 99 kW), and 208 hp (211 PS / 155 kW). Those setups exactly match those confirmed for the ID. Polo’s Skoda Epiq cousin, which, along with the Cupra Raval, rides on the same front-wheel drive MEB+ platform, so expect zero to 62 mph (100 kmh) in around 7 seconds.

The even hotter ID. Polo GTI, the first electric VW to get those letters, lands later with 223 hp (226 PS / 166 kW).

Entry versions use a 37 kWh battery with modest fast charging and city-friendly range, but a larger 52 kWh pack will give 280 miles (450 km) between stops. But it sounds like the big battery will be the only one available at launch, meaning the promised €25,000 starting price might not be a reality until very late 2026 or early 2027.

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While VW and Xpeng are teaming up to develop new EVs for China, the partnership hasn’t stopped a quiet rivalry from unfolding. Xpeng has just rolled out its latest electric sedan, the P7+, across European markets, and it’s not shy about naming its target, which is none other than the VW ID.7, one of Europe’s top-selling EVs.

Read: Xpeng P7+ Is The Latest Ultra-Efficient EV From China

The P7+ has already spent time on the Chinese market, but it recently arrived in Europe with more than just a new badge. It debuted in European specification at the Brussels Auto Show earlier this month and is now being built locally at Magna Steyr’s contract manufacturing facility in Graz, Austria.

Like the ID.7, it’s a streamlined, low-profile sedan with a strong focus on range and high-speed charging.

A Cheaper Entry, With Compromises

One thing the Xpeng has going for it over the VW is price. In Germany, the entry-level P7+ starts at just €43,600 ($51,200), significantly undercutting the ID.7 that kicks off from €54,105 ($64,900). However, whereas the base ID.7 uses a 77 kWh battery and has a WLTP driving range of 385 miles (619 km), the base P7+ uses a much smaller 62 kWh pack, restricting its range to 283 miles (455 km).

Shoppers who want to travel farther between stops will need to pay at least €49,600 ($59,500) for the long-range model, which boasts a 75 kWh pack and a 329-mile (530 km) range. However, that pales in comparison to the flagship ID.7 Pro S with its 86 kWh pack and 440-mile (708 km) range.

Charging Without Compromise

According to Sven De Smet, head of brand and marketing at Xpeng Europe, who spoke to AutoNews, one of the key advantages of the P7+ is its faster charging capability. The VW tops out at 200 kW for DC fast charging, while the base P7+ can reach 350 kW, and the long-range version peaks at 446 kW.

“We believe charging is one of the pain points,” De Smet said. “A big battery is heavier, which means it consumes more electricity, which means you charge it more.”

Xpeng also points out that the smaller, lighter battery packs in the P7+ should have a positive impact on handling and overall driving dynamics. That could prove appealing to European drivers, who often place a premium on responsiveness and efficiency.

The question now is whether the P7+ can match the ID.7’s strong European sales. Last year, VW moved 76,368 units of the ID.7 across the continent, putting it in seventh place among all EVs sold. That figure put it just 10,000 units behind the Tesla Model 3. Xpeng may be the challenger in this case, but it’s stepping into a crowded field.

Strategic Partners, Not Just Rivals

VW holds a five percent stake in Xpeng following a $700 million investment, but the ties run deeper than capital. The two brands are jointly developing several EVs for the Chinese market, including at least one model built on Xpeng’s Edward platform. VW has also committed to integrating aspects of Xpeng’s tech stack, including its proprietary Turing chip and VLA 2.0 software, into future models.

Xpeng

The recalls keep adding up for the Volkswagen ID.4 and the latest is a major safety issue impacting 670 crossovers. It involves 2023 and 2024 model year vehicles, which have misaligned electrodes that can result in a battery fire.

According to the National Highway Traffic Safety Administration, Volkswagen first became aware of a problem when an ID.4 caught on fire while using a DC fast charger in January of 2024. This kicked off an investigation, but a second fire in a parked vehicle was reported in July.

More: Multiple Fires Spark Urgent Warning For VW EV Owners

A third fire followed in October of 2024, while a fourth came in December. The latter was being driven at the time.

What Caused the Fires?

Due to the “differing nature of these events and the condition of the batteries,” Volkswagen and suppliers had a hard time determining a root cause. However, the company managed to trace the origin of the fires to the battery and found “shifted electrodes” in one of them.

A fifth fire was reported in August of 2025 while using a DC fast charger. Eventually, a tear-down analysis found shifted electrodes and these were confirmed in previous cases via CT images. This sparked a recall in December of 2025, which was amended less than two weeks later as additional faulty batteries where identified.

The companies continued looking into the issue and SK Battery America discovered a second production problem that could result in shifted electrodes. The companies aren’t aware of any field reports related to this specific issue, but they’ve decided to conduct a new recall.

Serious Safety Warning

100 percent of the recalled vehicles are believed to be impacted and Volkswagen is warning owners to “park outside immediately after charging and not leave their vehicles charging indoors overnight until the recall repair is complete.”

On top of that, drivers are being advised not to use DC fast chargers and to limit the battery charge to a maximum of 80 percent.

That’s a big inconvenience, but it beats having your ID.4 burst into flames. To address the issue, Volkswagen will replace high voltage battery cell modules.

A Second ID.4 Recall

Speaking of ID.4 recalls, there’s a second one involving 2023-2025 models. This one impacts 43,881 vehicles and is due to a battery that can overheat.

This is related to the aforementioned problem and is designed to cover “incidents outside of the ranges being recalled for the shifted electrode issues.” Unfortunately, details are hazy as Volkswagen hasn’t found a clear root cause.

That being said, the automaker warned the battery can experience “thermal propagation” in rare circumstances. This can eventually lead to a vehicle fire.

While the root cause remains elusive, “current analysis results show that certain deviations at the supplier of the battery modules may result in self-discharge.” If this issue exists in your ID.4, you might notice reduced range and/or performance.

As part of the recall, Volkswagen technicians will perform a battery health check and install updated self-discharge detection software. The company may also replace some batteries, based on the results of the inspection and software readings.

Only 1% of the recalled vehicles are believed to have the defect, which would equate to around 439 crossovers.

Volkswagen’s ID.4 electric SUV is getting a new suit and a new name to go with it. A report out this week suggests the ID.4 will soon be rebadged as the ID. Tiguan, confirming what we suspected in a recent spy shot story.

Also: VW’s ID. Polo Interior Brings Back Something You Thought Was Gone For Good

The name change will arrive alongside a comprehensive facelift later this year, according to Auto News. Their nformation reportedly came from the IG Metall labor union during a press conference in Germany, which is about as official as things get without VW actually saying anything. Unsurprisingly, Volkswagen declined to comment.

Baldauf

This move fits perfectly with VW’s recent decision to abandon cold numeric names in favor of familiar badges. It was recently confirmed that the production version of the ID.2all hatch concept will be called ID. Polo when it arrives in European dealerships this year, and don’t be surprised if the ID.Every1 concept turns into an ID. Up.

We’ve already seen what the ID. Tiguan looks like in prototype form. Our spy shots revealed a heavily revised exterior with new doors, redesigned lights, fresh bumpers, and a reworked rear hatch. The shape remains familiar, but the surfacing is sharper and more upright, bringing it closer to the combustion Tiguan and the upcoming ID Cross.

Rediscovering Buttons

The changes are more than skin deep. Inside, Volkswagen appears ready to undo some of its recent interior mistakes. Physical buttons are expected to return, including a proper volume knob, along with better materials and a cleaner dashboard layout.

The touchscreen and digital cluster should grow in size, while updated software promises a smarter voice assistant that hopefully listens this time. The result should look something like the interior of the new ID. Polo, shown below.

Battery Upgrade

Underneath, the facelifted ID. Tiguan is expected to ride on a revised MEB plus platform. That likely means newer battery cells, including LFP chemistry in some versions, improving efficiency and potentially boosting real-world range. Don’t expect a voltage upgrade though, as it will stick with 400-volt architecture and modest charging speeds.

Performance updates should be mild, since VW already boosted the base single-motor version in 2024 to 282 hp (286 PS/ 210 kW), though dual-motor versions could get a lift to help them regain their advantage over rear-drive models. The focus overall though, will be on usability, refinement, and making the electric Tiguan feel like a natural alternative to the combustion SUV carrying the same name.

Production of the new ID. Tiguan will continue in Emden, Germany, through 2031, Auto News reports, suggesting VW sees plenty of life left in this model. And that makes sense, since the ID.4 was one of only two models that grew, rather than lost, sales in the US last year.

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It’s no secret that Tesla had a tough run in Europe last year. After several years of outpacing legacy automakers in EV sales, 2025 brought a sharp reversal that few would have seen coming just a couple of years ago. The brand that once led the electric car race is now falling behind a familiar rival with a very different backstory.

Read: BYD Sold Nearly Three Times As Many Cars As Tesla In Europe

Volkswagen sold more battery-electric vehicles in Europe than Tesla last year. Yes, VW, the same manufacturer that was mired in the diesel emissions scandal just as Tesla was gearing up for the Model 3, has now overtaken the American brand on its home turf.

Changing of the Guard

According to figures from Dataforce reported by Autonews, the VW brand moved 274,417 fully electric vehicles in Europe in 2025, a jump of 56 percent from its 2024 total of 175,654. Things weren’t so pretty for Tesla.

Its sales declined 27 percent last year, dropping from 326,714 units to 238,765. This came despite the fact that the Tesla Model Y remains Europe’s best-selling EV with 151,331 units sold last year, significantly more than the 94,106 Skoda Elroqs that were sold over the same period. However, Model Y sales were still down 28 percent from 2024, when 210,265 were sold.

Europe’s Best-Selling EVs

Dataforce

Helping the VW brand take the top place from Tesla is the fact that it has a larger range of EVs. For example, the VW ID.4 sold 80,123 units last year, up 23.8 percent. A total of 78,667 VW ID.3s were sold, up 44.4 percent. The ID.7 also saw growth, with 76,368 units finding new homes, a 137.2 percent rise.

To put these figures into perspective, Tesla sold 86,261 Model 3s. And while that beat out any individual VW model, it was still down 23.6 percent from 2024.

VW Conquers All…Almost

VW’s strong year wasn’t limited to EVs. It also topped Europe’s plug-in hybrid (PHEV) segment, selling 159,173 units, a 205 percent jump from 2024. That was enough to comfortably beat BMW, with 142,285 sales, followed by Mercedes-Benz at 135,878 and Volvo at 104,270.

The VW brand also led in both gasoline and diesel vehicle sales. Its gas-powered lineup moved 737,821 units in 2025, staying well ahead of Peugeot’s 492,133, despite VW recording a 7.3 percent decline. Diesel sales reached 269,277 units, down 19.4 percent from the previous year, but still enough to edge out Mercedes, which sold 250,326.

Europe’s Top-Selling EV Brands

Dataforce

Traditional hybrids were the only powertrain segment that VW didn’t take top honors in, as Toyota held the crown with 626,675 sales. Although VW didn’t rank in the top five, things could change this year as it plans to launch the new T-Roc, complete with a hybrid powertrain.

Volkswagen isn’t sitting still when it comes to electric cars, even if most of its lineup in the US has struggled to gain traction this year. The ID.4, one of only two VW models whose American sales actually increased in 2025, is getting more than a light polish.

Instead, it’s heading into a major refresh that reshapes it into what some within the company are already calling the “electric Tiguan.”

Related: Every VW Model Dropped In Sales, Except The Two You’d Never Expect

Our first spy shots show a crossover that’s recognizably an ID.4, but one that’s been carefully sharpened. The front end is squarer, clearly aligned with the upcoming ID Cross look.

SB-Medien

As you can see in our spy shots, the doors are new with proper pull handles, and the rear end has been subtly reworked with a concave rather than convex tailgate panel, plus a re-profiled D pillar.

It’s not a ground-up redesign, because there’s only so much you can change with a facelift. The underlying structure appears mostly identical, which makes sense for a mid cycle update.

However, the surfacing and proportions have been tweaked just enough to bring the ID.4 visually into sync with the new Tiguan and VW’s upcoming electric ID.Cross, which was unveiled in concept form last September, and goes on sale in Europe later in 2026.

Buttons Are Back

Inside is where the biggest changes may be felt day to day. Physical buttons and switches will feature prominently, including a real volume knob, alongside a new dashboard, better materials, and a revised user interface. We got our first glimpse of this direction in the official photos of the new ID. Polo’s interior (pictured above) earlier this month.

The software gets an upgrade too, with an improved AI-powered voice assistant, and the currently undersized digital gauge cluster will grow in size.

Powertrains and Batteries

Under the skin sits a revised MEB plus platform that should feature LFP battery chemistry for better efficiency and potentially more range, though it’ll still be stuck with 400-volt electrics.

Powertrains are expected to receive light updates rather than dramatic changes. But VW did, after all, only relatively recently dramatically improve the output of the base single-motor ID.4, which since 2024 produces 282 hp (210 kW / 286 PS). That represents an increase of 80 hp (60 kW / 82 PS) over the previous version.

This facelifted ID.4 is expected to arrive near the end of 2026, helping carry the model through to 2028. That’s when a fully new version is due, this time based on a true 800-volt platform. That is nearly sure to be badged ID.Tiguan, if VW hasn’t decided that this year’s facelift is extensive enough to justify that name change for the 2027 model year.

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