Tesla Sales in the EU Decline as Chinese Competitors Grab Market Share

The electric vehicle market in the European Union continues to grow, but Tesla, once the leading representative of the industry, is experiencing a decline in sales, according to the latest report from the European Automobile Manufacturers Association (ACEA). The Texas-based company has seen a significant drop in sales in the EU since CEO Elon Musk joined the political campaign of the U.S. president and later took on a role in his administration. Between January and July, Tesla’s sales in the EU fell by 43.5 percent, while in July alone, the company sold 42.4 percent fewer cars than in the same month last year, reports Euronews.

Meanwhile, Chinese electric vehicle manufacturers are relentlessly capturing market share. The largest increase is recorded by BYD, which increased sales by more than 200 percent in July and by more than 250 percent in the first seven months of 2025. In July alone, BYD secured a market share of 1.1 percent in the EU, surpassing Tesla’s 0.7 percent.

Despite this, Tesla still led from January to July with a share of 1.2 percent of total new car registrations in the EU. However, this is nearly half of the 2.1 percent recorded the previous year. BYD achieved a market share of 0.9 percent during the same period, up from just 0.3 percent in 2024.

Another Chinese brand, the state-owned manufacturer SAIC Motor, owner of brands such as IM Motors, Roewe, and MG, is also experiencing gradual growth in Europe. SAIC Motor secured a market share of 1.9 percent between January and July, after its sales increased by more than 30 percent during that period.

Where has electric vehicle sales in Europe increased the most?

In the first seven months of 2025, electric vehicles accounted for 15.6 percent of new car registrations in the EU, compared to 12.5 percent the previous year.

Among the largest economies, sales in Germany increased by 38.4 percent between January and July. In Spain, this growth was an impressive 89.6 percent, in Italy 29 percent, while France recorded a decline of 4.3 percent during the same period. In the United Kingdom, sales increased by 31 percent.

Overall, the number of new car registrations in the EU fell by 0.7 percent in the first seven months compared to the previous year. Among all categories, hybrid vehicles continue to show stable growth and remain the most popular option, with a market share of 34.7 percent.