The UK recorded one of Europe’s strongest new car market performances in July, with registrations increasing by 12% year on year.
The growth was three times the 4% rise recorded across Europe, where registrations reached 1.12 million vehicles, according to JATO Dynamics.
Great Britain and Poland were the strongest-performing major markets, both growing by 12%. Germany remained Europe’s largest new car market with 268,000 registrations, while volumes declined in Belgium and the Netherlands.
BEVs power wider market growth
Although JATO did not provide a powertrain breakdown for Great Britain, it said battery electric vehicles were the primary driver of growth across the wider European market.
BEV registrations increased by 51% to 279,800 units, lifting their market share from 17.2% in July 2025 to 24.9% this year.
Fully electric cars therefore represented almost one in every four new vehicles registered across Europe during the month.
Plug-in hybrid registrations increased by 16% to 128,800 units, while full hybrid demand grew by 7% to 145,300 vehicles. Mild-hybrid volumes remained broadly stable at 252,300 units.
Registrations of conventional combustion cars fell by 22% to 302,100 units. Their European market share declined from 35.9% to 26.9%, leaving combustion vehicles only two percentage points ahead of BEVs.
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.”
Electric ranges shape brand growth
The Škoda Elroq, Volkswagen ID.4 and Renault 5 led the strongest-performing electric models in July, demonstrating the increasing role of mainstream EVs in driving European demand.
Volkswagen remained Europe’s most-registered car brand despite its volume declining by 4% to 118,700 units. Škoda retained second place with 74,800 registrations, down by 3%, while third-placed Toyota increased its registrations by 4% to 73,600 units.
Renault was the fastest-growing brand among Europe’s ten most-registered manufacturers, with registrations rising by 11% to 54,800 vehicles. Mercedes-Benz grew by 5%, while Kia matched Toyota’s 4% increase.
Dacia registrations declined by 13%, highlighting the widening performance gap between brands as competitive electric and hybrid ranges become more important to new car demand.
JATO said northern and western European markets continued to lead BEV adoption, while hybrid vehicles remained more prominent in southern and eastern Europe.
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