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Europe's July Auto Sales Review: New Energy Vehicles Lead Market Recovery
Source:芝能汽车 | Author:Brand Strategy Department | Published time: 2025-08-31 | 143 Views | Share:

Europe's Auto Market in July: NEVs Drive Long-Awaited Recovery

After months of lackluster performance in the first half of the year, Europe’s auto market finally showed signs of a "long-awaited recovery" in July. New car sales reached 1.085 million units, a 5.9% year-on-year increase—a rebound led by electric vehicles (EVs).


Battery electric vehicles (BEVs) saw sales surge by 33.6% year-on-year, while plug-in hybrid electric vehicles (PHEVs) jumped by an impressive 52.3%. In contrast, gasoline and diesel vehicles continued their decline, with their market shares dropping to 26.8% and 8.9%, respectively.


  • BEVs: 186,000 units sold (+33.6% YoY), capturing a 17.2% market share;

  • PHEVs: 111,000 units sold (+52.3% YoY), holding a 10.3% market share;

  • Hybrids (including 48V mild hybrids): 372,000 units sold (+11.1% YoY), dominating with a 34.3% market share;

  • Gasoline vehicles: 291,000 units sold (-13.9% YoY), accounting for 26.8% of the market;

  • Diesel vehicles: 97,000 units sold (-14.4% YoY), with a 8.9% market share.


Growth was not limited to Northern Europe—often seen as an "EV testbed." Eastern European countries like Poland and Slovakia, as well as Southern European nations including Spain and Italy, reported doubled sales of NEVs. This signals that electrification is no longer just a policy pilot in wealthy countries, but a reflection of broader shifts in consumer habits across the region.


Chinese brands have gained unprecedented visibility in this transition: BYD sold 13,500 units in July (+225% YoY), while Chery and Leapmotor also climbed rapidly in sales rankings. In contrast, Tesla saw its sales decline for the seventh consecutive month, with the Model Y even falling out of the top 50 best-selling models.

Part 1: July Sales Structure & Powertrain Performance

Overall Sales and Powertrain Growth

Europe’s total new car registrations reached 1.085 million units in July, up 5.9% year-on-year. BEVs and PHEVs led the growth among all powertrain types, with YoY increases of 33.6% and 52.3%, respectively. Hybrid vehicles (including 48V mild hybrids) maintained steady growth (+11.1% YoY), while traditional gasoline and diesel vehicles continued to decline (-13.9% and -14.4% YoY, respectively), leading to a corresponding drop in their market shares.

Regional Variations in BEV Sales

BEV performance varied significantly across regions:


  • Eastern Europe: Poland, Slovakia, Bulgaria, Lithuania, Hungary, and Latvia all reported over 68% YoY growth, with Poland and Slovakia achieving doubled sales;

  • Western Europe: Germany, Austria, and Ireland saw over 56% YoY growth;

  • Northern Europe: Iceland, Denmark, Norway, and Finland grew by approximately 47% YoY, with Iceland’s sales more than doubling;

  • Southern Europe: Spain, Italy, Cyprus, and Slovenia recorded over 37% YoY growth, with Spain’s sales also doubling.


Northern and Eastern Europe remain the fastest-growing markets for BEV adoption.

PHEV Sales: Even Stronger Momentum

PHEVs delivered an even more striking performance:


  • In Northern and Central Europe, Latvia and Lithuania saw sales surge by over 400% and 300% YoY, respectively; Spain’s PHEV sales jumped by 178.8% YoY; Slovenia and Croatia also doubled their PHEV sales;

  • Austria, Slovakia, Poland, Germany, Italy, the Netherlands, the Czech Republic, Bulgaria, and Switzerland all reported over 54% YoY growth in PHEV sales, with Germany standing out at 83.6% YoY growth.

Market Share by Powertrain

  • Hybrids (including 48V mild hybrids) maintained the largest market share at 34.3%—dominating nearly a third of the market—despite slower growth than BEVs and PHEVs;

  • Gasoline and diesel vehicles, meanwhile, continued to face sales pressure, with their shares falling to 26.8% and 8.9%, respectively.


This shift in powertrain structure not only reflects Europe’s electrification trend but also indicates growing consumer acceptance of low-emission vehicles—driving automakers to accelerate the rollout of electrified and hybrid models.

Chinese Brands’ Growing Presence in Europe

Chinese automakers also made notable gains:


  • BYD registered 13,500 new vehicles in July (+225.3% YoY), capturing a 1.2% market share and surpassing Tesla to become a key player in Europe’s EV market;

  • Chery, leveraging sales of its Omoda and Jaecoo brands, saw sales soar from 1,107 units to 9,177 units;

  • Other Chinese brands like Leapmotor and SAIC also recorded rapid growth in select markets: Leapmotor’s sales jumped from 23 units to 2,389 units, while SAIC grew by 14% overall.

Part 2: Model Performance & Brand Landscape Shifts

July’s best-selling model rankings in Europe revealed significant structural adjustments:


  • The Dacia Sandero reclaimed the top spot with 21,040 new registrations, displacing the Renault Clio— which had held the No.1 position for months but fell to 9th place in July;

  • The Sandero’s strong return was driven by the launch of its new compact SUV, the Bigster, which sold 9,432 units and boosted Dacia’s overall performance;

  • The Renault Group reported steady 10% YoY growth in total sales, demonstrating its competitiveness in the small car market—though individual model rankings were affected by new model launches and shifting consumer preferences.


Volkswagen Group remained dominant: three of its Volkswagen-badged models—the T-Roc, Tiguan, and Golf—ranked among the top five best-sellers. The group’s total July sales reached 124,069 units (+14% YoY).


Among other brands:


  • Skoda and Cupra performed well, with steady year-to-date sales growth;

  • Audi, despite launching new models, still saw a 5.6% decline in year-to-date sales (Jan-Jul);

  • Mercedes-Benz recorded limited growth (+1.75% YoY), with 60,752 new vehicle sales (including Smart-badged models).

NEV Contributions from Chinese Brands

Chinese brands were key contributors to Europe’s NEV market:


  • BYD’s top-performing models in Europe were the Seal U (6,471 units), Sealion 7 (1,826 units), and the newly launched Dolphin Surf (1,468 units);

  • Chery’s combined sales of Omoda and Jaecoo models reached 9,177 units;

  • Leapmotor achieved explosive growth, with sales rising from 23 units to 2,389 units.


Tesla, however, faced significant downward pressure: sales of the Model Y dropped by 40% YoY to just 5,915 units, pushing it out of the top 50 models list.

Summary

Europe’s auto market is in a state of "slow recovery," with growth concentrated in BEVs and PHEVs—while traditional fuel vehicles continue to lose market share. For European automakers, this means accelerating their transition away from relying on fuel vehicles as "cash cows."