New-car registrations in the EU, EFTA and U.K. markets rose in June as growing demand for electric cars and improved parts supply helped fuel an 11th consecutive month of growth.
Registrations increased 19 percent to 1.27 million vehicles, industry lobbying group ACEA said in data released on Wednesday.
Sales of battery-electric vehicles surged 55 percent, while deliveries of diesel cars declined 10 percent.
Automakers are still working down order books as longstanding shortages of critical components like semiconductors have eased.
The outlook, though, is clouded by prospects that supply-chain logjams could return amid surging demand for EVs, and consumers may cut back spending due to higher costs of living and slowing global growth.