Europe’s new-car market expanded 5.9% in July to 1.09 million vehicles, the fastest growth in 15 months, according to the European Automobile Manufacturers Association. Battery-electric, hybrid and plug-in hybrid models together accounted for almost 60% of registrations, underscoring a continuing shift away from petrol and diesel cars despite weak consumer confidence. Chinese electric-vehicle maker BYD registered 13,503 cars during the month, a 225% year-on-year surge that lifted its market share to 1.2% and put it ahead of Tesla for the second time this year. Tesla’s registrations fell 40.2% to 8,837, cutting its share to 0.8% and marking a seventh consecutive monthly decline in the region. Among Europe’s incumbent manufacturers, Volkswagen and Renault posted registration gains of 11.6% and 8.8% respectively, while Stellantis slipped 1.1%. Germany led the rebound in electrified models after reinstating purchase incentives, with battery-electric sales up 58% and plug-in hybrids up 83.6%. The industry nevertheless remains under pressure from higher import tariffs, intensifying Chinese competition and tightening EU CO₂ targets for 2035.