Tesla’s Sales Drop in Europe While BYD Triples Growth in 2025

Europe’s car sales climb in July as Tesla sales drop and BYD’s triple. The European Union’s new car registrations rose 7.4% year-on-year in July, the strongest monthly growth since April 2024, according to data from the European Automobile Manufacturers Association (ACEA).

EV demand helped lift sales. However, it wasn’t all good news for EV automakers. Tesla continued losing ground in the region. Meanwhile, its Chinese rival BYD tripled its European sales through the first seven months, overtaking Tesla’s market share in July for the first time.

BYD accelerates while Tesla faces declining sales

BYD posted more than 200% growth in July and over 250% for the first seven months of 2025, securing 1.1% of the EU market in July versus Tesla’s 0.7%.

In comparison, Tesla’s registrations dropped 42% in July and more than 43% year-to-date, reducing its EU share by nearly half compared to 2024. Despite the decline, Tesla retained a 1.2% share for the January–July period, ahead of BYD’s 0.9%.

Meanwhile, SAIC Motor brands, including MG, also grew, capturing a 1.9% share with a 30% sales increase.

Hybrid and EV demand drive market recovery

Electrified vehicles accounted for nearly 60% of new EU registrations in July, with sales of hybrid, plug-in hybrid, and fully electric models all surging. Germany led with 58% BEV and 84% PHEV growth in July, while Spain recorded an 89.6% EV increase for January–July.

The broader European market showed mixed results. Gains in Germany, Spain, and Austria offset declines in France, Italy, and the UK. Automakers, including Volkswagen and Renault, saw strong double-digit gains, while Stellantis experienced a decline.

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