Mumbai, Aug. 28 -- Europe's new car sales rebounded in July on strong demand for battery electric and plug-in hybrid cars, the European Automobile Manufacturers' Association, or ACEA, reported Thursday.

Car registrations in the European Union advanced 7.4 percent year-on-year in July, offsetting June's 7.3 percent decrease.

Data showed an annual rise of 39.1 percent for battery-electric and 14.3 percent for hybrid-electric cars sales, while plug-in-hybrid electric recorded its fifth consecutive month of continuous strong growth with a 56.9 percent increase.

There was a 12.0 percent decline for petrol and 15.2 percent drop for diesel car sales.

Among largest economies, overall demand in cars in Germany grew 11.1 percent. Similarly, Spain...