Over the past 15 months, the European car market has shown the largest growth. This rise is mainly due to the increasing demand for hybrid and electric vehicles, which indicates consumers' readiness to invest in more environmentally friendly models despite economic uncertainty. This is reported by Bloomberg, writes UNN.
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Sales of new cars in Europe in July jumped by 5.9% year-on-year, reaching 1.09 million units, which was the most significant jump since April 2024. This was reported by the European Automobile Manufacturers' Association (ACEA).
There has been a particularly active increase in the purchase of cars with so-called "Green technology". Sales of plug-in hybrids more than doubled – by 52%, and fully electric models showed over 30% growth, which was the best result since the beginning of the year. This significantly supported the European automotive industry after the June decline.
However, tariffs imposed by the Donald Trump administration are a serious barrier for the industry. They complicate supply chains, while Chinese manufacturers, led by BYD, are gaining market share with cheaper electric vehicles.
The next serious test will be the IAA Mobility exhibition in Munich, where leading European concerns – BMW, Volkswagen, and Mercedes-Benz – will try to strengthen their positions in the EV segment.
Discussions continue in the EU regarding the realism of the plan for a complete phase-out of internal combustion engines. Brussels made concessions to car manufacturers, postponing the implementation of stricter CO₂ emission standards by three years. Despite the boom in electric cars and plug-in hybrids, traditional hybrids without plug-in charging remain the most popular in Europe – they account for more than a third of new registrations.
High demand in Germany and Spain supported the market, while declines in France and the UK partially limited the overall result. London is trying to stimulate EV sales by reinstating subsidies in the form of grants up to £3750 (≈$5100 USD) for buyers of new EVs.
The situation among manufacturers varies. Tesla continues to lose ground: its sales in Europe fell by 40%, reducing the company's share to just 0.8%. In contrast, Volkswagen, BMW, and Ford showed double-digit growth, and Chinese BYD increased deliveries more than threefold.