BMW led the European battery electric vehicle (BEV) market for the first time, beating U.S. automaker Tesla, according to market research firm JATO Dynamics.
The German auto giant sold 14,869 BEV cars in July, about 300 more than Tesla last month.
The data underscored traditional automakers' success in the market after trailing pure electric-vehicle manufacturers, driven by government policies and brand royalty.
"The lack of clarity around the incentives for - and future of - EVs continues to present a barrier to consumers considering an EV. These factors, alongside the low residual value of EVs contributed to the decline seen in July," said Felipe Munoz, Global Analyst at JATO Dynamics, referring to a drop in total EV sales.
Tesla, the world's most valuable automaker, remains the dominant player, but traditional automakers such as BMW and Volvo are gaining ground due to uncertainties surrounding EV subsidies and incentives.
CEO Elon Musk's polarizing persona has also been influencing sentiment toward Tesla, according to some reports.
BMW reported a 35% jump in sales last month from a year earlier, while Tesla saw registrations fall 16%, the report said.
About 139,300 new electric cars were registered last month, down 6% from July 2023, according to the report, which added market share of EVs slipped to 13.5% from 14.6% a year earlier.