Global light vehicle sales down sharply in January

Western Europe - The Western European light vehicle (LV) market experienced a modest slowdown in January, with sales totaling 986k units, down 2.0% year-over-year (YoY) [1] - The monthly selling rate decelerated to 12.96 million units/year, with Germany's sales falling for the first time in over six months [1] - France's sales continued to decline due to ongoing political uncertainty, while some medium-sized markets saw a pull-forward effect towards year-end driven by tax regime changes and EU CO₂ emissions standards [1] Canada and Mexico - Canadian LV sales were estimated at 113k units in January, down 2.9% YoY, but the selling rate increased to 2.02 million units/year from 1.94 million units/year in December [2] - In Mexico, sales rose by 11.4% YoY to nearly 140k units, with a selling rate increase to 1.74 million units/year from 1.46 million units/year in December, marking record sales for January [2] United States - US LV sales fell by 0.8% YoY in January to 1.09 million units, with a selling rate slowing to 14.71 million units/year from 16.3 million units/year in December [3] - Average transaction prices reached US$46,204 in January, down by US$943 month-over-month (MoM) but up 1.9% YoY [3] China - China's passenger vehicle (PV) sales contracted 18.8% YoY to 1.44 million units in January, significantly impacted by reduced NEV purchase tax discounts and changes to the trade-in subsidy [6] - The PV selling rate was estimated at 13.7 million units/year, down 35% YoY, marking the lowest rate since April 2022 [6] Eastern Europe - The LV selling rate in Eastern Europe accelerated to 5.14 million units/year, but Russia's market weakened sharply with sales falling to 69k units, down 46% MoM and 17% YoY [5] - The decline in Russia was attributed to a collapse in imports due to higher vehicle recycling fees, VAT increases, and tighter import restrictions [5] Other Asia - In Japan, LV sales dropped 2.5% YoY, with the selling rate falling to a five-month low of 4.47 million units/year [8] - Korean LV sales expanded 16.6% YoY to 122k units, benefiting from an extra working day compared to 2025 [9] South America - Brazilian LV sales totaled 162k units in January, up 1.8% YoY, but the selling rate slumped to 2.2 million units/year from 2.8 million units/year in December [10] - In Argentina, sales totaled 63k units in January, down 4.5% YoY, with the selling rate slowing to 492k units/year from 524k units/year in December [11]