New car sales in Europe were flat in October, after falling for two consecutive months, industry data showed on Thursday, while the transition to fully electric or hybrid models gained ground in the month.

An uptick 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.

European automakers are struggling with weak demand, high production costs, and managing the shift to EVs, while trying to fend off competition from China.

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) rose for the second consecutive month, up 6.9% in October, while those of hybrid cars (HEVs) rose by 15.8%.

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

Sales were down 23.1% at EV maker Tesla and down 10% at China's SAIC Motor.

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

Electrified vehicles - either 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% in the previous year.

“As we head towards the end of the year, carmakers are increasingly rolling out discounts and deals to sell off any unsold stock,” said Felipe Munoz, Global Analyst at market research firm JATO Dynamics in a separate statement on Wednesday.

“This is helping registration figures stabilise and shouldn't be mistaken as an indication of market recovery," he added.

The European Union approved at the end of October increased tariffs on Chinese-built electric vehicles of up to as much as 45.3%.