BYD European Sales Soar 225% in July, Overtaking Tesla in Market Share

TradingKey - Chinese new energy vehicle leader BYD achieved explosive sales growth in the European market in July, surpassing Tesla in market share and becoming a focal point for the global automotive industry.

BYD's new vehicle registrations in the EU and five other countries, including the UK, reached 13,503 units in the month, surging 225.3% year-on-year. The market share climbed to 1.2%, and the company was included in the region's monthly sales statistics for the first time.

According to the latest data from the European Automobile Manufacturers' Association (ACEA), new vehicle registrations in Europe totaled 1.09 million units in July 2025, up 5.9% year-on-year — the fastest growth rate since April this year — providing a boost to the European automotive industry after a significant decline in June.

Although year-to-date (YTD) new vehicle registrations in the EU region have declined slightly by 0.7% compared to the same period last year, the single-month market showed a significant recovery, with July registrations in the EU region increasing by as much as 7.4% year-on-year.

July's European automotive sales growth was primarily driven by new energy vehicles.

Data showed that pure electric vehicle sales grew 39.1%, recording the best performance since January this year. Plug-in hybrid vehicle sales surged even more significantly, increasing 52% year-on-year. Traditional hybrid vehicles still held the largest market share, with over one-third of new registrations coming from this segment.

Pure electric, hybrid, and plug-in hybrid vehicles collectively saw sales growth of 39.1% year-on-year, together accounting for 59.8% of new vehicle registrations — up 8.7 percentage points from the same period last year.

Amid the overall growth of the European pure electric vehicle market, Tesla's performance has remained weak.

During the same period, Tesla's new vehicle registrations in Europe amounted to only 8,837 units, down 40% year-on-year, with market share shrinking to 0.8%. BYD's new vehicle registrations were 52.8% higher than Tesla's.

Tesla faces increasingly severe challenges in the European market, with competition from automakers like BYD, Volkswagen, and BMW intensifying, particularly in the high-value segment where pressure is particularly significant.

Additionally, some controversial statements by Tesla CEO Elon Musk and his relationship with the Trump administration in the United States have negatively impacted the brand's reputation in Europe, reducing its appeal among European consumers who prioritize social responsibility and brand image.

The company's overall automotive sales revenue has already declined in the second quarter, and Musk previously publicly warned that the company may face "difficult times" in the coming quarters.

Against this backdrop, the collective overseas expansion of Chinese automakers presents a stark contrast, with BYD's leading advantage being particularly prominent. By accurately capturing European consumers' demand for high-value new energy vehicle models, BYD has not only continued to strengthen its position in the pure electric segment but has also gradually opened up the market with its DM-i hybrid technology product line, forming a differentiated competitive advantage.

On Wednesday, Tesla edged down 0.59% to $349.60, with the stock having fallen 13.43% year-to-date.