Chinese carmaker BYD sold more cars than Tesla in the European Union for the second month in a row, based on August 2025 registrations. According to Reuters, BYD’s market share in August reached 1.3%, while Tesla slipped to 1.2%.
The numbers show BYD’s sales in the EU grew by 201% compared to last year, while Tesla’s sales dropped sharply by 36.6%. Overall, EU car sales increased by 5.3% in the same period.
The primary driver of BYD’s growth is Europe’s increasing demand for electrified vehicles. According to the ACEA (Europe’s automotive industry association) report, in August, 62.2% of new registrations in the EU were either hybrid, plug-in hybrid, or fully electric vehicles. Battery-electric cars alone rose 30.2% year-on-year, while hybrids made up 34.7% of total sales.
BYD’s business model is to offer an electrified option in every form. If they want a full EV, BYD has it. If they prefer a hybrid, BYD offers that too. This flexibility is paying off in Europe, as many buyers remain hesitant to go fully electric and therefore opt for hybrids. Tesla, on the other hand, sells only all-electric cars. That one-track approach is now costing Tesla as BYD pulls ahead in the European market.
Moreover, BYD’s aggressive pricing, which is built on a strategy of giving maximum value for the least amount of money, is putting global pressure on Tesla. The company’s lineup of hybrids and EVs makes it attractive in many markets.
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