Hua Er Jie Jian Wen·2025-08-28 08:25Core Insights - The European automotive market experienced its largest growth in 15 months in July, driven by a surge in demand for electric and hybrid vehicles, with new car registrations increasing by 5.9% year-on-year to 1.09 million units [1][2] Group 1: Market Performance - Plug-in hybrid vehicles saw the most significant increase, with sales soaring by 52% year-on-year, while pure electric vehicle sales grew by over 39.1%, marking the best performance since January [1][2] - Traditional hybrid vehicles remain the largest single category in the European market, accounting for over one-third of new registrations [2] - Total sales of pure electric, hybrid, and plug-in hybrid vehicles combined increased by 39.1%, representing 59.8% of new registrations, up from 51.1% in the previous year [2] Group 2: Brand Performance - BYD's sales surged by 225.3%, capturing a market share of 1.2%, while Tesla's sales plummeted by 40.2%, reducing its market share from 1.4% to 0.8% [3] - Traditional European automakers like Volkswagen and Ford achieved double-digit growth, with registrations increasing by 11.6% and 8.8%, respectively [3] Group 3: Challenges and Regulatory Environment - Despite the sales rebound, the European automotive industry faces challenges from U.S. tariffs disrupting supply chains and increasing market competition [1][4] - Industry executives have warned the EU that stringent environmental targets are unrealistic, with calls for a reevaluation of the 2035 goal for 100% zero-emission new cars [4] - The EU has responded by granting a three-year buffer period for stricter carbon dioxide emission targets [5]