Europe’s new car sales jumped 5.9% in July, marking the strongest monthly growth since April 2024 and signaling a much-needed boost for the auto industry amid weakening consumer confidence. According to data from the European Automobile Manufacturers Association (ACEA), plug-in hybrid sales posted the biggest jump since early 2023, while battery-electric vehicles saw their fastest growth since August last year.
Germany emerged as the standout performer, with BEV sales climbing 58% and plug-in hybrids soaring 83.6% following the government’s newly announced EV incentive plan. Despite this strong momentum, Tesla’s market share in Europe declined for the seventh straight month, with sales plunging 40.2% year-on-year. The U.S. carmaker now trails China’s BYD, which entered the monthly ACEA data for the first time and quickly captured 1.2% of the European market compared to Tesla’s 0.8%.
Volkswagen and Renault saw healthy growth of 11.6% and 8.8% respectively, while Stellantis registrations dipped 1.1%. Across the EU, UK, and EFTA, sales reached 1.09 million vehicles in July, with overall EU car sales rising 7.4%. Electrified vehicles accounted for nearly 60% of registrations, up sharply from just over 51% a year ago.
The broader European market, however, remains under pressure. The region’s auto industry is grappling with U.S. import tariffs, intensifying competition from Chinese automakers, and regulatory hurdles tied to the EU’s ambitious 2035 net-zero emissions target. In fact, ACEA leadership has urged Brussels to reconsider its 100% CO2 reduction goals for cars, calling them increasingly unrealistic.
National performance varied: sales climbed 11.1% in Germany, 17.1% in Spain, 16.5% in Poland, and 31.6% in Austria, while the UK, France, and Italy all reported declines. With EV adoption accelerating but profitability concerns mounting, the battle for Europe’s car market is intensifying — and for now, BYD has overtaken Tesla as the continent’s fastest-growing EV brand.
