By Greta Rosen Fondahn and Alessandro Parodi

(Reuters) – Sales of new cars in Europe remained stable in October, after falling for two consecutive months, industry data showed on Thursday, while the transition to fully electric or hybrid models gained ground over the of the month.

A slight rise in total sales in Spain and Germany, of 7.2% and 6% respectively, offset a contraction in France, Italy and Britain, the European Automobile Manufacturers’ Association (ACEA) said ).

WHY IT IS IMPORTANT

European automakers face weak demand, high production costs and managing the transition to electric vehicles, while trying to fend off Chinese competition.

IN NUMBERS

The number of new vehicles registered in October in the EU, Britain and the European Free Trade Association (EFTA) rose 0.1% year-on-year to 1.04 million.

Sales of fully electric cars (BEVs) increased for the second consecutive month, up 6.9% in October, while those of hybrid cars (HEVs) increased 15.8%.

Registrations in the EU, Great Britain and EFTA at Volkswagen increased by 12.6%, while they fell by 16.7% at Stellantis and by 0.4% at Renault.

Sales fell 23.1% at electric vehicle manufacturer Tesla and 10% at Chinese SAIC Motor.

In the EU, total new car registrations increased by 1.1% year-on-year. Germany saw its sales increase by 6%, after three months of losses.

Electrified vehicles – whether BEV, HEV or plug-in hybrids (PHEV) – sold in the bloc accounted for 55.4% of passenger car registrations in October, up from 51.3% the previous year.

QUOTES

“As we approach the end of the year, automakers are increasingly offering discounts and offers to clear their unsold inventory,” Felipe Munoz, global analyst at market research firm JATO, said on Wednesday. Dynamics, in a separate press release.

“This contributes to the stabilization of registration figures and should not be confused with an indication of market recovery,” he added.

CONTEXT

The European Union approved an increase in tariffs on Chinese-made electric vehicles of up to 45.3% at the end of October.

(Reporting by Greta Rosen Fondahn and Alessandro ParodiEditing by Nick Zieminski and Susan Fenton)