Europe’s auto industry is likely to contract this year, European automakers’ industry association ACEA said, fueling concerns that automakers’ best years are behind them for now.

Car registrations are forecast to drop 2 percent in 2020, ACEA said in a statement on Wednesday. Sales ended 2019 1.2 percent higher after a year-end buying spree in December.

“One of the biggest drivers of change for our sector is the need to address environmental concerns,” ACEA President Michael Manley said in the statement. “The good news is that carbon-neutral road transport is possible,” he said. A lot needs to change in the next few decades, he said, Automotive News reads.

Europe is not the only region facing a tough 2020 for car sales. China, the world’s largest autos market, saw its second annual fall last year, with drops in 18 of the past 19 months.

Automakers in Europe are dealing with pressures on several fronts, with trade tensions between the U.S. and China, as well as regulations taking effect this and next year aimed at lowering carbon emissions.

A bright spot for automakers is the rise of electric cars.

Electric-vehicle sales are expected to grow 32 percent this year, according to BloombergNEF. Those will be vital for the continued success of car companies, as the European Union has limited the amount of carbon dioxide car fleets can emit on average to 95 grams per car per kilometer, or face steep fines.