European Car Sales Rise 5.9% in July, Tesla Market Share Declines

New car sales in Europe rose 5.9% in July 2025, driven mainly by strong growth in Germany, Spain, Poland, and Austria, which offset declines in the UK, France, and Italy. Total European Union car sales increased by 7.4%, with electric vehicle (EV) registrations surging across battery electric, hybrid, and plug-in hybrid models to constitute nearly 60% of all registrations, up from 51.1% a year earlier. Despite the overall rise in EV sales, Tesla's market share fell for the seventh consecutive month, dropping 40.2% and trailing behind Chinese automaker BYD, whose sales jumped 225.3% after being included in the data for the first time. Established European manufacturers like Volkswagen and Renault experienced significant registration increases, while Stellantis saw a slight decline. The European Automobile Manufacturers Association (ACEA) has expressed concerns over the feasibility of EU CO2 reduction targets by 2035 amid growing regulatory challenges and losses faced by automakers, partly due to U.S. import tariffs. Consumer preference notably shifted toward plug-in hybrids, which saw the biggest growth among EV types, reflecting a trend toward vehicles that blend electric and combustion technologies.