Tesla's market share slumps in the EU, surpassed by BYD and SAIC
According to ACEA, Tesla’s market share in Europe plummeted to just 6,600 new vehicle registrations in July 2025, representing a 42% decrease compared to the same month last year. In addition to falling market share, Tesla has been surpassed by two Chinese EV manufacturers in European sales rankings.
BYD and SAIC emerge as winners
Reuters reported that BYD had a particularly strong performance, tripling its number of new car registrations in the EU to 9,698 and overtaking Tesla for the first time. SAIC, the parent company of the MG brand, also outperformed the US automaker, posting higher sales figures during the same period. Reuters noted that Tesla has been overtaken not only by major competitors but also smaller Chinese brands.
Overall conditions in the European car market
Based on ACEA’s information, July 2025 saw a year-over-year increase of approximately 7.4% in total new vehicle registrations across the EU, offsetting the decline recorded in June. However, since the beginning of the year, the overall sales volume has remained slightly below last year’s level. Volkswagen took the top spot amongst German automakers, whilst BMW and Mercedes-Benz also posted growth. Hybrids continue to gain traction as the preferred vehicle type, accounting for 34.7% of the market. Meanwhile, electric vehicles held a 15.6% market share.
Outlook for Tesla
Tesla’s steep decline suggests the company is facing mounting pressure in the European market. Chinese competitors are offering more affordable models and gaining brand recognition. Without pricing adjustments and a broader model lineup, Tesla may continue to lose market share. At the same time, it remains uncertain how the company’s future will be impacted by political developments – especially the EU’s plans to cut CO₂ emissions by 2030 and phase out combustion engine car sales by 2035.
