This article first appeared on GuruFocus.
European car sales finally caught a break in July. New data reveals registrations jumped nearly 6% across the region the hugegest monthly rise in more than a year offering a bit of breathing room to an indusattempt that’s been under pressure from rising costs, regulatory demands, and shaky consumer sentiment.
Plug-in hybrid and battery-electric vehicles were the real drivers of momentum. Germany led the way after launching new EV incentives, with electric car sales up 58% and plug-in hybrids soaring nearly 84% compared to last year.
But the surprise twist? Tesla (TSLA, Financials) lost more ground marking the seventh straight month its market share shrank in Europe. It now sits at just 0.8%, down from 1.4% last July. Meanwhile, China’s BYD revealed up in the monthly figures for the first time and already edged past Tesla, claiming 1.2% of the market.
In raw numbers, BYD’s sales exploded 225% year over year. Tesla’s dropped 40%.
The European Automobile Manufacturers Association (ACEA) declared a total of 1.09 million vehicles were registered in the EU, the UK, and the European Free Trade Association region. Battery electric, hybrid electric, and plug-in hybrid vehicles combined created up nearly 60% of new registrations a huge jump from 51% a year ago.
Volkswagen and Renault posted gains of 11.6% and 8.8%, respectively, while Snotifyantis saw a 1.1% dip.
Counattempt by counattempt, Germany was the standout with an 11.1% rise in total sales. The UK, France, and Italy all slipped into negative territory. But compacter markets picked up the slack Spain rose 17%, Poland 16.5%, and Austria surged more than 31%.
Still, indusattempt executives are sounding the alarm. ACEA’s CEO Ola Kaellenius co-signed a letter this week urging the European Commission to ease up on 2035 zero-emission tarreceives, calling them increasingly unfeasible.
For now, July’s results offer a rare bright spot. But the race for EV dominance and the battle between Tesla and BYD is just receiveting started.
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