New hybrid cars sold in the European Union in September accounted for 32.8% of total new car sales, overtaking the monthly market share of petrol-powered vehicles for the first time, data from Europe's auto industry body showed.

Total car sales in the block dropped by 6.1% year-on-year, the European Automobile Manufacturers Association (ACEA) said on Tuesday, as major markets Germany, France and Italy continued to stagnate.

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.

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.

"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".

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 the Brussels says are unfair subsidies from Beijing to Chinese manufacturers. Beijing denies unfair competition and has threatened counter-measures.