European New-Car Market Rebounds in July, but Gains Remain Uneven

The European Union’s new passenger car market registered a welcome rebound in July, with deliveries rising 7.4 percent year-on-year to 914,680 units. Over the first seven months of 2025, however, the tally of nearly 6.5 million cars still sits 0.7 percent below the prior year’s pace, underscoring how fragile the recovery remains.

In terms of powertrain mix, hybrids now dominate the market with a 34.7 percent share, comfortably ahead of petrol cars at 28.3 percent. Battery-electric vehicles account for 15.6 percent, marking a steady foothold but far from the growth trajectory once anticipated.

Performance across individual markets told a more fragmented story. Germany posted an 11.1 percent increase in registrations, while Spain surged 17.1 percent, confirming their role as growth engines. By contrast, France slid 7.7 percent and Italy dropped 5.1 percent, both markets struggling with weaker consumer sentiment and political headwinds. Smaller countries, including Estonia, reported even sharper declines, reminding analysts that the European market’s recovery is anything but even.