August's surprisingly weak sales are a stumbling block in automakers' pandemic recovery path, suggesting the industry could be in store for an even worse year than expected.

Europe probably will exceed 1 million sales of plug-in hybrid and electric-vehicles this year, as Tesla makes more cars available in the region and VW ramps up deliveries of its battery-powered ID3.

Auto markets are recovering from low points under coronavirus lockdowns but incentives and pent-up demand are clouding the true picture, LMC Automotive said.

Tesla is losing ground in an EV market that is growing fast after European governments boosted incentives for electric cars to stimulate demand and reduce emissions.