BYD Beats Tesla In Europe: BYD Grows 225 % As Tesla Declines 40 %

Chinese automaker BYD has overtaken Tesla in European electric vehicle sales for the first time. In July 2025, BYD registered 13,503 new cars across Europe, including the UK and EFTA markets. This represented a 225 percent increase compared with the same month last year. In contrast, Tesla managed only 8,837 registrations, a decline of 40 percent year-on-year.

Changing Market Trends

The July figures marked Tesla’s seventh consecutive month of falling sales in Europe, even as the region’s electric vehicle market grew strongly. The reversal highlights changing consumer preferences and intensifying competition.

BYD’s growth is notable given that its cars face a 27 percent import tariff under European Union anti-subsidy rules. Despite this, the company has managed to maintain competitive pricing and expand rapidly across multiple markets.

BYD’s product range, which includes both electric and hybrid vehicles, gives it flexibility in addressing varying consumer demand across countries. In contrast, Tesla’s line-up has remained largely unchanged in recent years. Analysts point to this stagnation as one reason behind its weakening position.

Competitive Advantages

BYD has invested steadily in building visibility and access across Europe. New showrooms have opened in key markets, and the company has introduced models adapted to European tastes.

The company has also promoted its technology strongly. Its new fast charging system can add up to 250 miles of range in five minutes, while its “God’s Eye” autonomous driving features are bundled without extra cost. By comparison, Tesla charges a premium for similar driver assistance systems.

Sales data underlines the extent of BYD’s growth. In Spain, the company sold 2,158 cars in July, almost eight times higher than the same month last year. In the United Kingdom, registrations rose to 3,184 vehicles, four times higher year-on-year. Germany recorded a 390 percent increase, signalling that BYD’s expansion is not limited to one or two regions.

Tesla’s position in Germany has weakened sharply. Sales in July dropped 55 percent to just over 1,100 units, while cumulative sales from January to July were down nearly 58 percent. The decline in Europe’s largest car market highlights the scale of Tesla’s challenge.

Wider Chinese Presence

The broader Chinese automotive industry has expanded its presence across Europe. Market share for Chinese brands grew from 2.7 percent in early 2024 to 5.1 percent in the first half of 2025. This growth has coincided with an overall rise in EV sales in Europe. Markets such as Denmark, Norway, Spain, Sweden, and Portugal all posted double-digit growth in July, yet Tesla was unable to benefit from these favourable conditions.

Tesla has also faced reputational issues. CEO Elon Musk’s political statements, including support for Germany’s far-right AfD party, have led to protests and negative publicity. Consumer sentiment in some markets has shifted away from the brand, further contributing to sales declines.

The Surge Likely To Continue

BYD has signalled its long-term commitment to Europe. The company plans to expand into 12 more European countries by the end of 2025 and will begin local production in Hungary. This move is expected to lower costs, reduce exposure to EU tariffs, and allow BYD to compete more directly with established European automakers.

Tesla’s strategy remains less clear. The company has focused on future technologies such as robotaxis and autonomous driving services, but regulatory approval for these projects is still pending. Meanwhile, its current product line has lost some of the appeal it once enjoyed.

The developments point to a shifting balance in the European electric vehicle sector. BYD’s rise and Tesla’s struggles show how quickly competitive dynamics can change. Chinese manufacturers are now established players in Europe, combining competitive pricing with rapid product and technology updates.

The coming years are likely to see even greater competition, with Chinese, American and European brands pushing to secure long-term positions in a growing but increasingly contested market.