However, the ACEA said that the EV market share remains far below the level needed to be compliant with the EU’s vehicle emissions rules.
The Brussels-based industry body said that 902,011 new battery-electric cars were registered from January to August, representing 12.6pc of the market.
“We are missing crucial conditions to reach the necessary boost in production and adoption of zero-emission vehicles: charging and hydrogen refilling infrastructure, as well as a competitive manufacturing environment, affordable green energy, purchase and tax incentives, and a secure supply of raw materials, hydrogen and batteries,” the ACEA said.
It urged the European Union to delay new carbon emissions targets and instead take “urgent and meaningful action” to reverse the decline.
Top carmakers including Volkswagen, BMW and Renault have already suggested pushing back the targets, which would see companies fined for failing to comply.
Meanwhile, Italy urged the EU to pause its “absurd” plans to ban petrol cars by 2035 amid concerns the policy risks triggering the automotive industry’s collapse.
Drivers are increasingly reluctant to purchase electric vehicles on mounting concerns about range, resale and the availability of charging points.
The European market share of EVs also fell during August from 21pc to 14.4pc. Petrol car sales also decreased by 17.1pc, although they still represent 32.6pc of the market. Diesel car sales also dropped 26.4pc.
Registrations of plug-in hybrid cars in Europe dropped 22.3pc last month, with declines recorded in all major markets.