Tesla’s Declining Performance
Tesla’s registrations across Europe fell sharply in July, plunging 40% compared with the previous year. According to the European Automobile Manufacturers’ Association (ACEA), the company logged 8,837 sales in the EU, the UK, and the European Free Trade Association, down from 14,769 in July 2024. Even with the refreshed Model Y, the brand is losing ground in an increasingly competitive market.
BYD Expands Its Reach
BYD more than tripled its registrations over the same period, climbing to 13,503 vehicles from 4,151 a year earlier. This pushed its market share up to 1.2%, surpassing Tesla’s 0.8%. Offering more affordable models, the Chinese automaker has been moving aggressively into the European market and earlier this year overtook Tesla in sales for the first time, figures from JATO Dynamics show.
UK Incentives and Industry Outlook
In the UK, new government incentives were introduced to boost demand for electric vehicles. Ford will be the first carmaker to secure the full £3,750 subsidy on two models, while another 26 models qualify for grants of £1,500. The scheme applies to vehicles priced under £37,000, with the discount deducted at purchase. Meanwhile, car production in Britain rose 5.6% in July, the second consecutive monthly increase. The Society of Motor Manufacturers and Traders cautioned that the industry still faces challenges, including subdued consumer confidence and unstable trade flows. Across Europe, 1.011 million battery-electric cars were registered in the first seven months of 2025, making up 15.6% of sales, while hybrids led the market with 2.255 million registrations, buoyed by growth in France, Spain, Germany, and Italy.
