The Tesla Model 3 topped the sales charts in Europe last month, the first time an electric car has beat out petrol and diesels to arrive in pole position with consumers, according to a report by Jato Dynamics.

With the new car market in upheaval due to production delays caused by a lack of computer chips, Tesla's sold almost 24,600 Model 3 sedans to take a 2.6 percent market share.

Renault's compact Clio was second with nearly 18,300 sold.

"This is both first time that an EV has led the market and the first time that a vehicle manufactured outside of Europe has occupied the top spot," said the report by Jato, an auto industry data firm.

Tesla has fared better than other carmakers in the face of the computer chip shortage, managing to boost sales while others have had to idle factories, in part because the integrated systems on its vehicles mean the firm needs fewer chips.

Jato said consumers who don't want to wait for new cars are turning to the used car market, which is also depressing sales of petrol and diesel models.

The chip shortage has battered the car industry just when it was starting to recover from a pandemic-inspired slump in sales.

Globally, 718,598 cars were sold last month, the lowest number for September since 1995.

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