European Tesla Owners Shift to Other Brands, Bringing Joy to Chinese Auto Manufacturers
In a significant shift towards electrified powertrains, European sales of battery-electric vehicles (BEVs), hybrids, and plug-in hybrids (PHEVs) have surged in July 2025. This marks an all-time high for electrified vehicles in Europe, with BEVs, PHEVs, and hybrids collectively capturing 59% of new registrations.
The increase in sales is evident across the board. Year-to-date sales of hybrids in the European Union, European Free Trade Association (EFTA), and United Kingdom regions have risen by 15%, while PHEV sales have soared by 57%. BEV sales have experienced an even more dramatic increase, with a 39% jump in July 2025.
Amidst this surge, traditional fuel vehicles have seen a sharp decline. Sales of gasoline vehicles dropped 21% between January and July 2025, and diesel sales dropped 26% during the same period.
In the competitive electric vehicle (EV) market, Chinese automobile brand BYD has made a significant impact. BYD's registrations in Europe surged by 225% in July 2025 to 13,503 units, more than tripling its sales compared to the previous year. This growth has solidified BYD's position in the European market, which has tripled compared to 2024.
BYD's success in Europe has outpaced that of Tesla. Tesla's sales in Europe decreased by 40% in July 2025 compared to the previous year, with the company registering 8,837 cars. Within the EU alone, Tesla's sales fell by 42.4% to 6,600 units in July 2025.
Elon Musk's divisive reputation among European consumers has dampened enthusiasm for Tesla. The updated Model Y has generated only modest interest, and the addition of a new Performance trim, while promising, is unlikely to boost sales significantly due to its high price.
Despite Tesla's decline, the company still holds a 1.5% share of the year-to-date market in Europe, compared to BYD's 1.1%. However, BYD achieved the greatest sales success for electric vehicles in Europe in July 2025, surpassing Tesla significantly with 9,698 units sold.
The overall market in Europe has held steady at 7,900,877 units sold so far this year, indicating a resilient demand despite the shift towards electrification. The future sales of Tesla in the remaining four months of 2025 remain uncertain, but the trend towards electrification shows no signs of slowing down.
