Tesla’s Sales Slide
Tesla saw a steep downturn in European sales in July, with numbers falling 40% year on year. Data from the European Automobile Manufacturers’ Association (ACEA) reported 8,837 Tesla cars registered across the EU, the UK, and the European Free Trade Association, a sharp drop from 14,769 in the same month of 2024. Despite updates to its Model Y, the company continues to struggle against intensifying competition.
BYD’s Rapid Growth
BYD recorded a surge in demand, with registrations rising to 13,503 vehicles last month, more than tripling the 4,151 from July last year. Its market share climbed to 1.2%, overtaking Tesla’s 0.8%. Known for its lower-cost models, the Chinese brand has been expanding quickly across the continent and earlier this year surpassed Tesla’s sales in Europe for the first time, according to JATO Dynamics.
UK Incentives and European Market Trends
The UK has introduced fresh subsidies to encourage electric vehicle purchases. Ford will be the first manufacturer to access the maximum £3,750 discount on two of its models, while an additional 26 vehicles will receive £1,500 support. Only cars priced below £37,000 are eligible, with deductions applied automatically. Separately, UK car production grew 5.6% in July, the second month in a row of output increases. The Society of Motor Manufacturers and Traders warned, however, that the industry faces instability due to weak confidence among buyers and unpredictable trade flows. Across the EU, 1.011 million fully electric vehicles were registered in the first seven months of 2025, taking a 15.6% market share. Hybrid models led the way, reaching 2.255 million registrations, driven by strong gains in France, Spain, Germany, and Italy.
