STORY: In the European Union, fully electric car sales surpassed gasoline car sales for the first time in December.This happened despite policymakers proposing to relax emissions regulations.Tesla continued to lose market share, especially to rivals such as China’s BYD and Volkswagen, Europe’s best-selling group.This was according to data from the European automotive lobby ACEA.Automobile sales across Europe continued to grow for the sixth consecutive month on an annual basis.Overall registrations, a gauge of sales, hit a five-year high in 2025.Europe’s auto industry faces challenges such as competition from China, US import tariffs and difficulties meeting local regulations on EV adoption.In December, the EU announced a plan to lift the effective 2035 ban on cars with internal combustion engines, bowing to calls from struggling carmakers.However, analysts expect electric vehicles to gain popularity despite the relaxation of policy.Sales in the EU, UK and European Free Trade Association rose 7.6% to 1.2 million vehicles in December.They increased by over 10% in VW and 4.5% in Stelantis.However, Renault also fell by 2.2 percent. Registrations at Tesla fell by a fifth.Rival BYD saw a 229% increase.