Britain's strong effort in electric cars and strong demand for electric vehicles, European car sales rebounded in March.

Last month, European car sales saw growth for the first time since December last year, as strong demand for electric cars in the UK offset weak sales in Germany and France. According to data released by the European Automobile Manufacturers' Association on Thursday, new car registrations in Europe increased by 2.8% year-on-year in March, reaching 1.42 million cars. The UK led with a 12% increase, while demand in Italy and Spain was also strong. The strong sales have brought some relief to the European car industry, which has been struggling with low consumer confidence, declining sales in China, and U.S. tariffs. Car manufacturers like Stellantis NV and Renault are trying to stimulate demand in Europe by offering cheaper electric models. Last month, electric car deliveries surged by 24% in Europe as car manufacturers used discounts to boost sales. It is unclear whether this growth can be sustained as the EU recently decided to give car manufacturers more time to meet stricter CO2 emission targets. Pure electric cars accounted for 17% of total sales during the same period. The growth in electric car sales did not benefit Tesla, Inc., as the company saw a 28% decrease in new car registrations in Europe last month. Some consumers have shied away from Tesla, Inc. cars due to CEO Elon Musk's support for right-wing political parties and involvement in politics. President Donald Trump's tariffs on imports could further weaken European car demand. Bloomberg Intelligence analysts suggest that after a slight increase in 2024, car manufacturers may struggle to grow sales in Europe this year, with tariffs potentially undermining consumer confidence. Despite Trump exploring the possibility of temporary exemptions for imported cars, large European manufacturers are still seeking ways to deal with car tariffs. Stellantis has already halted production at its factories in Canada and Mexico, while Mercedes-Benz is considering withdrawing its cheapest model from the U.S. and transferring production of another model to the U.S. BMW is considering adding shifts at its factory in South Carolina. To compete with Chinese electric car manufacturers, European carmakers are attracting customers with cheaper battery-powered models, such as Renault's R5 E-tech priced at 25,000 euros (about $28,500) and Stellantis' Citron -C3 city car.