Europe’s auto market staged its strongest rebound in more than a year, with new-car registrations across the European Union, the UK and the European Free Trade Association rising 5.9% in July to 1.09 million units, according to data released by the European Automobile Manufacturers Association. The gain is the best since April 2024 and was led by an 11.1% jump in Germany that offset declines in the UK, France and Italy. Electrified models continued to draw buyers despite weakening consumer confidence. Battery-electric registrations climbed 39% from a year earlier, while plug-in hybrids surged nearly 57%. Together with conventional hybrids, vehicles with some form of electrification accounted for almost 60% of all cars sold in the region last month. China’s BYD widened its lead over Tesla for the second time this year. Registrations of BYD vehicles more than tripled to 13,503, lifting the Shenzhen-based carmaker’s share to 1.2%. Tesla’s registrations fell about 40% to roughly 6,600, cutting its share to 0.8% and marking a seventh consecutive monthly decline for the U.S. brand. Among Europe’s incumbent manufacturers, Volkswagen and Renault posted sales increases of 11.6% and 8.8%, respectively, while Stellantis slipped 1.1%. The industry is lobbying Brussels to ease 2035 emissions targets as it grapples with U.S. tariffs and intensifying price competition from Chinese electric-vehicle makers.