Tesla’s Market Share Shrinks
Tesla recorded a sharp fall in European sales in July, down 40% compared with the same month last year. The European Automobile Manufacturers’ Association (ACEA) reported 8,837 Tesla vehicles were registered across the EU, the UK, and the European Free Trade Association, a steep drop from 14,769 in July 2024. Despite rolling out an updated Model Y, the company continues to lose ground in the region.
BYD’s Strong Momentum
BYD saw registrations soar to 13,503 vehicles in July, more than tripling the 4,151 units recorded a year earlier. Its share of the European market rose to 1.2%, ahead of Tesla’s 0.8%. With lower-priced offerings and rapid expansion, the Chinese automaker has built a strong foothold across Europe and earlier this year overtook Tesla in sales for the first time, according to JATO Dynamics.
UK Incentives and European Growth
The UK government has introduced new subsidies to encourage buyers to switch to electric cars. Ford will be the first manufacturer to benefit from the full £3,750 discount on two models, while 26 more models qualify for grants of £1,500. Only vehicles costing under £37,000 are eligible, with the subsidy automatically applied at purchase. Separately, UK car manufacturing rose 5.6% in July, marking a second straight month of growth. However, the Society of Motor Manufacturers and Traders warned of persistent challenges linked to weak consumer confidence and shifting trade flows. Across the EU, 1.011 million fully electric cars were registered between January and July 2025, representing 15.6% of the market. Hybrid sales were stronger, totaling 2.255 million units, with notable growth in France, Spain, Germany, and Italy.
