(Reuters) -Hybrids overtook petrol-powered vehicles in EU new car sales for the first time in September, industry data showed on Tuesday, accounting for 32.8% of the total, data from Europe's auto industry body showed.

Total car sales in the bloc dropped by 6.1% year-on-year, falling for two months in a row for the first time since July 2022, the European Automobile Manufacturers Association (ACEA) said on Tuesday, as major markets Germany, France and Italy continued to stagnate.

WHY IT'S IMPORTANT

The sale of hybrid electric cars (HEV) has increased in the EU in recent months, as buyers see them as an affordable compromise between all-combustion and all-electric.

Fully electric (BEV) and plug-in hybrid (PHEV) car sales have instead slowed this year, in part due to diverging policies on green incentives among European countries, while regulators have imposed hefty tariffs to try to keep out cheap Chinese EVs.

BY THE NUMBERS

Electrified vehicles - either BEV, PHEV or HEV - sold in the EU accounted for 56.9% of all new passenger car registrations in September, up from 50.3% in the previous year.

September sales of battery electric cars rose 9.8% year on year, but year-to-date sales volumes have dropped 5.8%.

Hybrid electric sales were up 12.5% on the year, while those for petrol vehicles dropped 17.9% to a market share of 29.8% in September.

Registrations at Volkswagen rose 0.3%, while they fell by 27.1% at Stellantis and by 1.5% at Renault.

QUOTES

"Today's numbers illustrate that we're still a long way away from the thriving EV market Europe needs", ACEA Director General Sigrid de Vries said in the statement.

"This is not the steady and reliable market growth that is needed for a successful green mobility transformation".

CONTEXT

Volkswagen, Stellantis and Renault are among European automakers struggling with weak demand and trying to fend off competition from China.

Earlier this month, EU member states narrowly backed import duties on Chinese-made EVs of up to 45%, meant to counter what Brussels says are unfair subsidies from Beijing to Chinese manufacturers. Beijing denies unfair competition and has threatened counter-measures.