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Electric vehicles

Tesla Sales Slump as BYD Gains Ground in European Market

Strategic Insights

— 2 min read

Tesla's electric car sales in Europe plummeted 40% in July, with the company selling only 8,837 cars, compared to 14,769 in the same period last year. This decline comes as their Chinese rival BYD has more than tripled its sales in the region, with 13,503 new car registrations in July. BYD now holds a 1.2% market share in Europe, surpassing Tesla's 0.8%. The EU's electric car market is becoming increasingly competitive, with Chinese car brands aggressively expanding their presence in the region.

Key Takeaways:

  • Tesla's European sales slumped 40% in July, with only 8,837 cars sold, down from 14,769 in the same period last year.
  • BYD's new car registrations in Europe tripled to 13,503 in July, compared to 4,151 in the same period last year.
  • BYD now holds a 1.2% market share in Europe, surpassing Tesla's 0.8%.
  • The UK government's new electric car grant scheme provides discounts of up to £3,750 on eligible vehicles, with 26 models eligible for £1,500 grants.
  • UK car production rose 5.6% in July, according to the Society of Motor Manufacturers and Traders.
  • Hybrid-electric car registrations in the EU have increased 10.2% year-to-date, driven by growth in France, Spain, Germany, and Italy.
  • 1,011,903 new battery-electric cars were registered in the EU in the first seven months of 2025, accounting for 15.6% of the market share.
  • Sigrid de Vries, director general of ACEA, emphasized the need to expand public recharging infrastructure, reduce recharging prices, and coordiate purchase incentives schemes to accelerate electric car adoption in Europe.

Statistics:

  • 8,837: Tesla's sales in Europe in July.
  • 14,769: Tesla's sales in Europe in July 2023.
  • 13,503: BYD's new car registrations in Europe in July 2025.
  • 4,151: BYD's new car registrations in Europe in July 2024.
  • 1.2%: BYD's market share in Europe.
  • 0.8%: Tesla's market share in Europe.
  • 1,011,903: Number of new battery-electric cars registered in the EU in the first seven months of 2025.
  • 15.6%: Battery-electric car market share in the EU.
  • 2,255,080: Hybrid-electric car registrations in the EU in the first seven months of 2025.
  • 30.5%: Growth in hybrid-electric car registrations in France.
  • 30.2%: Growth in hybrid-electric car registrations in Spain.
  • 10.7%: Growth in hybrid-electric car registrations in Germany.
  • 9.4%: Growth in hybrid-electric car registrations in Italy.

Sources:

  • European Automobile Manufacturers' Association (ACEA)
  • European Free Trade Association
  • European Automobile Manufacturers' Association (ACEA) press release
  • Society of Motor Manufacturers and Traders
  • JATO Dynamics

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