London's benchmark FTSE 100 index of major blue-chip companies shed 2.1 per cent to 5,882.30 points, compared with Friday's closing level.
The pan-European STOXX 600 slipped 0.1% by 0716 GMT, oil & gas and chemical leading the declines, while a 1.2% jump in retailers helped counter the losses.
The pan-European STOXX 600 index fell 1.9%, on track for its biggest one-day drop in a month, pushing it to a weekly loss for the first time in four weeks.
As sales of internal combustion cars have fallen, demand for battery-only cars and hybrids that combine electric motors with conventional engines has been stable or even increased, recent statistics show.
London's benchmark FTSE 100 index of major blue-chip companies rose 0.3 per cent to 6,225.61 points compared with the closing level on Wednesday.
The European Central Bank has to maintain the "safety net" of its massive bond purchases at least until June 2021 to help underpin the economy, the ECB's President Christine Lagarde said on Friday, reaffirming the bank's policy stance.
The travel ban "is a big surprise and a big shock to the market" and shows that investors are yet to see the full financial fallout from the coronavirus outbreak, said IG Markets analyst Kyle Rodda. On the flip side, traders are selling gold to fund margin calls, providing a headwind for the metal, Rodda added.
London's benchmark FTSE 100 index dropped 0.5 percent to 6,152.82 points. The Paris CAC 40 index retreated 0.6 percent to 5,010.03 and Frankfurt's DAX 30 shed 0.3 percent to 12,961.12.
The pan-European STOXX 600 index fell 0.6% by 0723 GMT. Technology stocks, which have surged about 11% this year, were down 1.1%, and healthcare index slipped 0.8%.