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BEVs drive European car market growth in July

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Battery electric vehicles (BEVs) accounted for almost one in four new cars registered across Europe in July as EV demand helped drive a 4% increase in the overall new car market.

European new passenger car registrations reached 1.12 million units during the month, up from July 2025, according to data from JATO Dynamics.

BEV registrations climbed 51% year-on-year to 279,800 units, increasing their share of the market from 17.2% in July 2025 to 24.9% this year.

Plug-in hybrid (PHEV) registrations also recorded double-digit growth, rising 16% to 128,800 units, while hybrid electric vehicle (HEV) registrations increased 7% to 145,300.

Mild hybrid volumes were broadly stable at 252,300 units.

In contrast, registrations of conventional combustion-powered vehicles fell 22% to 302,100 units. Their share of the European market declined sharply from 35.9% to 26.9% year-on-year.

Steffen Michulski, Regional Consultant Europe at JATO Dynamics, said: “The standout story in July wasn’t overall market growth, it was the speed of BEV expansion.

“One in four new cars registered in Europe was fully electric, a clear sign that the market’s momentum is shifting decisively towards electrification. The winners are increasingly those with compelling EV line-ups, while combustion continues to move into the background.”

The Skoda Elroq was Europe’s strongest-performing electric model during July, followed by the Volkswagen ID.4 and Renault 5, highlighting the growing role of mainstream models in driving BEV adoption.

UK among strongest-growing markets

Performance varied across Europe’s largest automotive markets. Germany remained the region’s biggest market with 268,000 registrations, while Great Britain and Poland were among the strongest performers, both recording 12% growth. Registrations declined in Belgium and the Netherlands.

Northern and Western European countries continued to lead BEV adoption, while hybrid vehicles remained more prominent in Southern and Eastern Europe.

At manufacturer level, Volkswagen remained Europe’s most-registered car brand despite registrations falling 4% to 118,700 units.

Skoda retained second place with 74,800 registrations, down 3%, while Toyota increased volumes by 4% to 73,600.

Renault recorded the strongest growth among Europe’s ten most-registered brands, with registrations rising 11% to 54,800 units. Mercedes-Benz increased by 5%, while Kia and Toyota both grew by 4%.

Dacia, meanwhile, recorded a 13% decline.

The July figures underline the growing importance of electrified model ranges to manufacturers’ performance in Europe as BEVs take an increasing share of new vehicle registrations.