Elon Musk’s Tesla Struggles To Retain EV Market Share, BYD Surges Over 200% In July In Europe

Tesla Inc. TSLA continues to grapple with poor sales as rival and Chinese EV giant BYD Co. Ltd. BYDDY BYDDF bolstered its European presence with growing sales.

Tesla New Car Registrations Decline As BYD Grew 225%

Tesla sold 8,837 units in the region, down 40.2% from last year’s 14,769 units the company sold during July, data released by the European Automobile Manufacturers Association (ACEA) showed on Wednesday.

Tesla’s market share in July 2025 stood at 0.8%, a sharp decline from last year’s 1.4%. From January to July, Tesla sold 119,013 units in the region, declining 33% from last year’s sales performance during the same period.

Meanwhile, BYD recorded a surge of over 225% in the region, selling 13,503 units in July, up from 4,151 last year. The company’s July market share stood at 1.2%. BYD’s January to July sales clocked in at 84,416 units, up from 21,612 units, a surge of 290.6%

European BEV Market Share Increased, Hybridization Continues To Surge

The data shared by ACEA shows Battery Electric Vehicles, or BEVs, captured 15.6% of the European market in July, an increase from 12.4% in July 2024. Europe saw 186,440 BEVs sold in July, a 33.6% increase from July 2024’s 139,569 units.

«In the first seven months of 2025, 1,011,903 new battery-electric cars were registered,» the report said, adding that Germany, Belgium and the Netherlands drove EV adoption in the region.

Hybrid electric vehicles saw 372,036 units sold during July, while PHEVs, or Plug-in Hybrids, saw over 111,453 units sold, marking a 52.3% growth from July 2024’s 73,182 units.

Tesla’s Global Sales Woes, Lease Offers In Multiple Markets

The news comes as Tesla sales continue to decline in Europe, with UK sales dropping 60% in July and sales in Sweden, Denmark and France also experiencing significant declines.

Amid falling sales, the company has offered 40% discounts to lease providers in the UK, which could translate to lower monthly payments for potential customers in the country. Tesla is also offering $0 down leases on used Model Y and Model 3 units in the U.S.

BYD Tops Global EV Charts, European Expansion

As Tesla declines, BYD has claimed the top spot on global EV sales charts in the second quarter of 2025, with the company capturing over 18.3% of the global electric vehicle market.

BYD also announced its intention to further cement its presence in the European market, with the company launching its luxury-focused Yangwang and Denza brands in the region next year.

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