Core Insights - The Western European passenger vehicle market contracted for the first time in seven months, with sales declining 2.8% YoY to approximately 859k units in January 2026, and the seasonally adjusted selling rate dropped from 13.4 million units/year in December 2025 to 11.3 million units/year in January 2026 [1] Market Performance by Country - Germany experienced a decline in sales for the first time in over six months, with a 6.6% YoY drop, totaling 194k units, and a selling rate of 2.75 million units/year [8] - The UK market saw a positive trend, with sales increasing over 3% YoY to 144k units, marking the best start to a year since January 2020, with a selling rate of 2.18 million units/year [6] - France's market faced a 6.5% YoY decline, with sales at 107k units and a selling rate dropping 19% MoM to 1.50 million units/year, attributed to low consumer confidence [6] - Spain's market improved slightly with a 1% YoY increase in sales to 73k units, although the selling rate fell 22% MoM to 1.02 million units/year [7] - Italy maintained positive momentum with sales up over 6% YoY to 142k units, despite a 5% MoM decline in the selling rate to 1.59 million units/year [8] Future Outlook - GlobalData forecasts modest growth for the Western European passenger vehicle market despite ongoing political and economic challenges [1] - The market's performance in 2026 is projected to show a slight growth of 0.8% following a 1.8% increase in 2025, with a stagnant 0.0% growth in 2024 [5]