Tesla’s Market Position Weakens
Tesla experienced a sharp drop in European sales in July, recording a 40% year-on-year decline. According to the European Automobile Manufacturers’ Association (ACEA), the brand registered 8,837 cars across the EU, the UK, and the European Free Trade Association, a steep fall from 14,769 during the same month in 2024. Despite updates to the Model Y, Tesla’s momentum in the region continues to slow.
BYD Accelerates Ahead
Chinese manufacturer BYD saw registrations climb to 13,503 last month, more than tripling its 4,151 total from July 2024. Its share of the European market rose to 1.2%, compared with Tesla’s 0.8%. With lower-cost models and aggressive expansion strategies, BYD has been strengthening its footprint across the continent and earlier this year overtook Tesla in sales, research from JATO Dynamics shows.
UK Incentives and Regional Trends
In Britain, new subsidies were unveiled to support EV purchases. Ford will be the first to receive the maximum £3,750 discount on two of its models, while a further 26 models qualify for grants of £1,500. The programme applies to vehicles priced below £37,000, with reductions made at the point of sale. Meanwhile, UK car production grew 5.6% in July, its second consecutive monthly increase. The Society of Motor Manufacturers and Traders cautioned, however, that the market remains unsettled due to weak demand and shifting trade flows. Across the EU, 1.011 million battery-electric vehicles were registered in the first seven months of 2025, making up 15.6% of the market. Hybrid models remained more popular overall, reaching 2.255 million sales, with significant growth in France, Spain, Germany, and Italy.
