China’s BYD has officially overtaken Tesla in European EV sales. In July 2025, BYD sold approximately 13,500 cars, representing a 225% year-over-year increase. That gave it a 1.2% market share.
Tesla, on the other hand, saw sales fall by 40%, with only 8,800 cars sold and a 0.8% share.
Market Context & EV Trend
European car sales rebounded in July, with growth of 5.9%. The rebound was led by stronger demand in Germany and other key markets across the region.
At the same time, electric mobility is gaining speed in Europe. Battery-electric, hybrid, and plug-in hybrid vehicles together made up about 60% of new car registrations. That’s a big jump from roughly 51% in the same month last year.
This trend highlights how quickly European buyers are shifting toward EVs. The competition is getting tougher, and consumer preferences are clearly moving away from traditional combustion cars.
Tesla’s Struggle
Tesla’s market share in Europe has slipped badly this year. In the first seven months of 2025, the company sold around 119,000 cars. That’s more than 33% fewer than the same period last year.
Moreover, according to The Wall Street Journal, Tesla’s sales in Europe are declining. BYD, meanwhile, is moving in the opposite direction. Its growth has been rapid, with registrations jumping over 200% in July alone. The chart shows Tesla slipping further down the rankings while BYD climbs past it.
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BYD’s Winning Formula
BYD’s Winning FormulaBYD’s biggest strength is its pricing. The company sells cars at more affordable rates compared to Tesla and many European rivals. This has made it easier for buyers to switch to EVs without paying a premium.
The brand also offers a wide range of models. From compact hatchbacks to sedans and larger SUVs, BYD covers almost every segment. This variety means customers have more choices that fit their budgets and needs.
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