European EV Buyers Are Abandoning Tesla, Much to China's Delight | Carscoops

      Chinese automaker BYD outperformed Tesla in vehicle sales in Europe for July 2025, as reported 12 hours ago by Thanos Pappas.

      Tesla experienced a significant 40% decline in sales within Europe during July, resulting in a market share reduction of 50%.

      In contrast, BYD's vehicle registrations skyrocketed by 225% to reach 13,500 units.

      Currently, electric vehicles (EVs) and hybrids make up nearly 60% of all new car sales in Europe.

      Tesla's dominance in Europe's EV market is diminishing rapidly, with the latest Model Y failing to halt this trend. In July 2025, Tesla's sales in the European Union, the UK, and EFTA countries (Iceland, Liechtenstein, Norway, and Switzerland) fell 40% compared to the previous year, despite increasing demand for electrified vehicles across the continent.

      Data from the European Automobile Manufacturers’ Association (ACEA) indicates that battery-electric, hybrid, and plug-in hybrid models collectively accounted for 59% of new registrations, marking the highest level ever for electrified powertrains.

      A Stark Contrast

      The difference between the two manufacturers is striking. In July, Tesla recorded only 8,837 new registrations across the EU, EFTA, and the UK, a steep decline from nearly 14,769 the previous year. In the EU alone, where the UK is no longer part of the Union, Tesla's sales dropped even more sharply by 42.4% to 6,600 units. This drop reduced Tesla's market share in Europe from 1.4% to 0.8% for that month.

      Meanwhile, BYD experienced substantial growth, achieving a 225% increase in registrations across Europe to reach 13,503 units, securing a 1.2% market share and surpassing Tesla. This rapid growth illustrates how swiftly Chinese manufacturers are responding to Europe’s demand for affordable, well-equipped EVs, altering the competitive landscape.

      Despite these numbers, Tesla remains ahead in year-to-date totals, holding a 1.5% market share compared to BYD's 1.1%. However, the margin has significantly decreased, with Tesla lowering from 2.3% in 2024 and BYD tripling its share from 0.3%.

      Will Tesla be able to recover in the remaining four months of the year? It's uncertain, and if we had to wager, we would hesitate. The challenge stems from fierce competition as Chinese manufacturers, with BYD as a key example, flood the European market with a diverse range of hybrids and EVs that are both highly competitive and attractively priced.

      The obstacles extend beyond competition alone. Elon Musk's controversial image among European consumers has dampened enthusiasm, and the updated Model Y has garnered only limited interest. Although Tesla has introduced a new Performance trim, being the priciest option in the lineup likely won't significantly boost sales.

      Growing Demand for Electric Vehicles

      ACEA data reveals a notable surge in European sales of electrified vehicles in July. Specifically, battery-electric vehicles (BEVs) rose by 39%, hybrids increased by 14%, and plug-in hybrids (PHEVs) gained 57%, indicating growing consumer interest.

      The year-to-date statistics for the EU, EFTA, and UK regions clearly show this upward trend. Sales of electrified vehicles have risen significantly from January to July 2025, with BEVs increasing by 26% (1,376,720 units), PHEVs by 25% (703,615 units), and hybrids by 15% (2,755,421 units).

      In contrast, traditional fuel sales have declined. Gasoline sales fell by 21% to 2,193,273 units, while diesel sales dropped by 26% to 658,486 units. However, the overall market has remained stable with 7,900,877 units sold so far this year.

      Source: ACEA