By China’s BYD has officially overtaken Tesla in European EV sales, marking a major shift in the continent’s rapidly evolving electric mobility market. According to recent data, BYD sold approximately 13,500 vehicles in July 2025, a remarkable 225% year-over-year increase, securing a 1.2% market share.
In comparison, Tesla’s performance fell sharply. The company recorded just 8,800 sales in the same month, reflecting a 40% decline and a reduced 0.8% share. This decline highlights Tesla’s growing challenges in Europe, where competition is intensifying, and consumer expectations are shifting toward affordability and variety.
European Car Market Rebound
Overall, European car sales rebounded by 5.9% in July, led by stronger demand in Germany and other key markets. At the same time, electrification is accelerating rapidly. Battery-electric, hybrid, and plug-in hybrid vehicles accounted for around 60% of new registrations, up from 51% a year earlier. This underscores how quickly buyers are moving away from traditional combustion engines.
Tesla’s Struggles vs. BYD’s Rise
Tesla’s European sales have continued to slide throughout 2025. In the first seven months of the year, Tesla sold 119,000 units, which is 33% fewer than the same period last year. Industry analysts note that Tesla’s higher pricing and limited model range are contributing factors behind this slump.
BYD, on the other hand, has taken the opposite trajectory. Registrations soared by over 200% in July alone, supported by a competitive pricing strategy and a diverse lineup of vehicles. Unlike Tesla, BYD offers compact hatchbacks, sedans, and SUVs—covering multiple segments and budgets.
Why BYD is Winning in Europe?
The biggest strength of BYD lies in its ability to provide affordable EV options without compromising on quality. While Tesla has positioned itself as a premium EV maker, BYD’s cost-effective models are helping European buyers transition to electric vehicles more easily.
With its combination of lower prices, wide product range, and strong momentum, BYD is emerging as a major force in Europe’s EV sector. If the trend continues, Tesla may face an even tougher battle to regain its dominance in the region.
