Chinese automaker BYD sold more vehicles than Tesla in Europe in July 2025

Tesla’s grip on Europe’s EV market is weakening fast, and the latest Model Y isn’t slowing the slide. In July 2025, the automaker’s sales plunged 40 percent year-over-year across the European Union, the UK, and the EFTA countries (Iceland, Liechtenstein, Norway, and Switzerland), even as demand for electrified vehicles accelerated across the continent.

According to the European Automobile Manufacturers’ Association (ACEA), battery-electric, hybrid, and plug-in hybrid models together captured 59 percent of new registrations, marking an all-time high for electrified powertrains.

Losing Charge Where It Counts

The contrast could not be starker. Across the EU, EFTA, and the UK, Tesla registered 8,837 cars in July, a massive drop from nearly 14,769 a year earlier. Within the EU alone (since the UK formally exited the Union in January 2020), sales fell even further, down 42.4 percent to 6,600 units. That decline cut Tesla’s European market share from 1.4 percent to just 0.8 percent for the month

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As Tesla stumbled, Chinese automaker BYD surged ahead. Its registrations across Europe soared 225 percent in July to 13,503 units, giving it a 1.2 percent share of the market and nudging it past Elon Musk’s brand. The rapid rise highlights how quickly Chinese manufacturers are capitalizing on Europe’s demand for affordable, well-equipped EVs, reshaping the competitive balance in the process.

Year-to-date figures still leave Tesla in front with a 1.5 percent share, compared with BYD’s 1.1 percent. But the gap has narrowed considerably, with Tesla down from 2.3 percent in 2024 and BYD tripling its position from 0.3 percent.

Can Tesla find a way to bounce back in the four months that remain until the year ends? Maybe, maybe not – but if it were our money, we wouldn’t bet on it. See, it’s going to be an uphill struggle as Chinese rivals (of which BYD is a prime example) have swarmed Europe with a wide range of hybrids and EVs that are both very competitive on their own right and priced to undercut the competition, thus enticing buyers.

The challenge is not limited to tough competition. Elon Musk’s divisive reputation among European consumers has dampened enthusiasm, while the updated Model Y has generated only modest interest. Tesla now added a new Performance trim to the lineup, but being the most expensive model in the range, it is unlikely to give sales much of a boost.

Europeans Are Choosing Electric

According to data from ACEA, European sales of electrified vehicles recorded sharp increases in July. More specifically, BEVs were up 39%, hybrids climbed 14%, and PHEVs gained 57%, showing that customer interest is growing.

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The year-to-date figures for the EU, EFTA, and UK regions paint a clear picture of the ongoing trend. Sales of vehicles with electrified powertrains are on the rise between January and July 2025, with +26% for BEVs (1,376,720 units), +25% for PHEVs (703,615 units), and +15% for Hybrids (2,755,421 units).

By contrast, traditional fuels are in retreat. Gasoline sales dropped 21 percent to 2,193,273 units, and diesels fell 26 percent to 658,486 units. Despite these shifts, the overall market has held steady at 7,900,877 units sold so far this year.

Source: ACEA