In July, the share of electric vehicles (EVs) in Europe reached 25%, with sales increasing by 51%.

      In July, electric cars captured a 25% share of vehicle registrations in Europe, with sales increasing by 51% compared to the previous year, while the overall market grew by 4.1%. Chinese brands accounted for 34% of plug-in hybrid sales, a category currently unaffected by EU countervailing duties.

      Electric vehicles have transitioned from being a niche market in Europe. According to Dataforce, which tracks 98% of new registrations across the EU, UK, Iceland, Norway, and Switzerland, registrations surged by 51% in July compared to the same month the previous year, achieving a 25% market share.

      Electric vehicles are now driving the industry forward. The entire European market grew by 4.1% in July and 5.7% over the past seven months, while EV sales increased by 37% during the same timeframe, which followed a trend where one-fifth of EU registrations were electric in the first half of the year.

      This percentage translates to 277,006 vehicles in a single month, in a region that was grappling with range anxiety just three years ago. Two countries are leading the charge: France reached a 35% share of electric vehicles with over 44,000 registrations, and Germany achieved 29.3% with nearly 79,000.

      The top-selling vehicles in July were from European manufacturers, with the Skoda Elroq taking the lead, followed by the Volkswagen ID.4 and the Renault 5 E-Tech, all benefitting from Tesla's recent decline.

      Year-to-date, Tesla remains in the lead, with the Model Y topping the charts at 115,759 registrations, up 55%, followed by the Elroq at 67,679 and the Model 3 at 57,086.

      The plug-in hybrid market tells a different story. PHEV sales rose 15% to 125,530 in July, with Chinese brands capturing 34% of this segment. They also dominated the best-seller list, with the BYD Seal U at the top, followed by the BYD Atto 2 and Jaecoo 7, and the overall year-to-date podium is entirely comprised of Chinese vehicles.

      This phenomenon can be attributed to a gap in tariffs. While EU countervailing duties apply to battery-electric cars manufactured in China—reaching rates as high as 45.3% for SAIC—they do not apply to plug-in hybrids, prompting Volkswagen to seek protective measures.

      However, this gap is narrowing. The Commission announced in June its intention to extend duties to Chinese plug-in hybrids, having previously denied such plans in January. The expected rates will likely be lower than those for battery-electric vehicles due to the smaller proportion of battery value in hybrids.

      Thus, July stands as the last clear snapshot of this loophole: one-quarter of Europe's new cars are electric, while the fastest-growing alternative segment is still being produced in a region where tariffs have not yet taken effect.