Tesla Sales Decline as European Buyers Embrace Chinese EVs

Chinese automaker BYD sold more cars than Tesla in Europe last month. This significant shift occurred in July 2025. It marks a major turning point in the competitive electric vehicle landscape.

According to data from the European Automobile Manufacturers’ Association (ACEA), Tesla’s registrations fell sharply. Meanwhile, BYD’s sales surged by an impressive 225 percent across the region.

European Sales Data Reveals Stark Contrast

Tesla’s sales performance declined dramatically. The company registered only 8,837 vehicles in July across the EU, UK, and EFTA nations. This represents a 40 percent drop compared to the same period last year.

Consequently, Tesla’s market share was cut in half. It fell from 1.4 percent to just 0.8 percent for the month. This decline happened despite strong overall demand for electrified vehicles.

BYD’s Meteoric Rise and Broader Market Trends

BYD capitalized on the market shift. Its registrations soared to 13,503 units in July. This gave the Chinese automaker a 1.2 percent market share, officially pushing it past Tesla.

Electrified vehicles are now more popular than ever in Europe. Battery-electric, hybrid, and plug-in hybrid models together captured 59 percent of all new car registrations. This is an all-time high for the region.

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The European EV market is undergoing a profound transformation. BYD’s ascent demonstrates that affordability and variety are becoming decisive factors for consumers.

Info at your fingertips

How much did BYD’s sales increase in Europe?

BYD’s vehicle registrations surged by 225% in July 2025. This massive growth allowed it to surpass Tesla’s sales figures for the month.

What was Tesla’s market share in July?

Tesla’s European market share fell to 0.8% in July. This is half of its 1.4% share from the same month a year earlier.

What percentage of new cars in Europe are electrified?

Electrified vehicles now account for 59% of all new car sales. This category includes battery-electric, hybrid, and plug-in hybrid models.

Are traditional gasoline and diesel car sales declining?

Yes, sales of traditional fuels are in sharp decline. Gasoline car sales dropped 21% year-to-date, while diesel fell 26%.

Which organization provided this sales data?

The data comes from the European Automobile Manufacturers’ Association (ACEA). It is a trusted source for automotive industry statistics.

Trusted Sources

European Automobile Manufacturers’ Association (ACEA), Reuters, Associated Press