Tesla’s grip on Europe loosened in July: new registrations fell 40% year over year to 8,837 across the EU, EFTA and the UK, while China’s BYD more than tripled to 13,503, extending a run of market-share gains on the continent. It’s the clearest snapshot yet of how fast China’s EV champion is scaling in Europe—and how price-sensitive buyers are gravitating to newer, cheaper models.
The latest scoreboard
The industry’s official tally from ACEA puts BYD at 1.2% share of European registrations in July, with Tesla at 0.8%. That follows earlier months when BYD already outsold Tesla in Europe—momentum that has continued as BYD broadens its lineup and distribution.
The market is still growing—this is a share story
Despite Tesla’s drop, Europe’s EV transition hasn’t reversed. In the first seven months of 2025, the EU registered 1,011,903 battery-electric cars, equal to a 15.6% market share. Hybrids are larger still, and their growth has been propelled by France, Spain, Germany and Italy. For ACEA, the next leg depends on faster charger build-outs, lower electricity costs and more coherent incentive schemes.
Policy tailwinds at the entry price point
The UK just refreshed its EV grant scheme: only models priced £37,000 or below qualify, with the £3,750 top discount going initially to two Ford models and 26 others eligible for £1,500. The discount is applied at the till, and—crucially—skews support toward value segments where BYD is active. That puts pressure on rivals without compelling sub-£37k offerings.
Why Tesla is losing ground—for now
Several forces are converging. BYD’s rapid rollout, keen pricing and improving brand recognition are meeting a European buyer focused on affordability, while Tesla is navigating a Model Y refresh cycle and tougher competition across segments. Add in policy noise on tariffs and local content that can benefit non-Chinese value brands, and the near-term mix shifts toward BYD and other challengers. Even so, Tesla remains a major player—and the European race is far from over.
UK production edges higher, backdrop stays choppy
In Britain, car output rose 5.6% in July—the second monthly gain—though the SMMT cautions the operating environment remains volatile as consumers and supply chains adjust to new incentives, costs and trade rules.
Europe’s EV market is expanding, but the share is swinging. July’s data show BYD capitalising on price points and model cadence, while Tesla works through a tougher comparative patch. With incentives tilting to affordable models and infrastructure still catching up, the next moves on pricing, product launches and trade policy will decide how durable this shift becomes.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
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