European new car sales rose 10.7% in September 2025, led by strong EV demand, but EV transition lags due to cost and tariffs.

European new car sales rose 10.7% in September 2025, driven by new model launches and strong demand for plug-in vehicles, with plug-in hybrids up 65.4% and battery electric vehicles (BEVs) up 20%. BEV market share reached 16.1% year-to-date, while hybrids and plug-in hybrids together made up 64% of registrations. Tesla’s sales fell 10.5%, reducing its market share to 3.2%, while BYD’s sales surged 398%. Despite growth, the pace of the EV transition remains below targets, hindered by high costs, supply chain issues, and U.S. tariffs.