European new car sales dropped 7.4% in January

European car sales dropped in January, hit by a slow global economy, higher car taxes in some EU countries and the situation concerning Britain’s departure from the bloc, the European Auto Industry Association (ACEA) stated on Tuesday.

In January, new car registrations declined 7.4% to 1.135 million vehicles in the European Union, Britain and the European Free Trade Association (EFTA) countries, statistics by ACEA revealed.

Sales dropped 13.4% in France, 7.3% in Germany and 7.6% in Spain. In Sweden, a higher tax on cars, which went into effect this year, pushed sales down 18% in January, the biggest drop in the EU countries, after a 109% increase in December.

Volkswagen’s sales dropped 0.4% in January, while Renault and PSA Group posted a decline of 16.3% and 12.9%. BMW was among the few automakers reporting who reported a boost in their European sales last month, increasing 5.2%, while demand for Daimler dropped 10.4%.

The drop also comes as the coronavirus outbreak in China, the world’s largest automobile market, is expecting to impact markets during this month as well.