Tesla’s European Struggles
Tesla saw a sharp drop in European registrations in July, falling 40% compared with the same month last year. According to the European Automobile Manufacturers’ Association (ACEA), the company sold 8,837 vehicles across the EU, the UK, and the European Free Trade Association, down from 14,769 in July 2024. Updates to the Model Y have not been enough to reverse the slowdown.
BYD’s Rapid Rise
BYD’s sales in Europe soared to 13,503 vehicles last month, more than three times the 4,151 registered in July 2024. Its market share now stands at 1.2%, ahead of Tesla’s 0.8%. The Chinese automaker, known for affordable cars, has been expanding aggressively and earlier this year overtook Tesla in European sales for the first time, according to JATO Dynamics.
UK Incentives and Market Trends
The UK government has launched new incentives to encourage electric vehicle adoption. Ford will be the first automaker to receive the full £3,750 grant on two models, while 26 additional vehicles are eligible for £1,500. Only cars priced below £37,000 qualify, with the discount applied automatically at purchase. Meanwhile, UK car production rose 5.6% in July, marking a second consecutive month of growth. The Society of Motor Manufacturers and Traders noted ongoing challenges, including weak consumer confidence and volatile trade conditions. Across Europe, 1.011 million fully electric vehicles were registered in the first seven months of 2025, representing 15.6% of the market, while hybrid models led with 2.255 million registrations, supported by strong gains in France, Spain, Germany, and Italy.
