Tesla’s Decline Across the Region
Tesla’s European registrations dropped sharply in July, falling 40% compared with the same month last year. Data from the European Automobile Manufacturers’ Association (ACEA) showed the company delivered 8,837 vehicles across the EU, the UK, and the European Free Trade Association, a significant decrease from 14,769 in July 2024. The updated Model Y has not been enough to reverse the slowdown.
BYD Posts Record Growth
BYD’s sales in Europe accelerated dramatically, reaching 13,503 registrations in July, more than three times higher than the 4,151 units a year earlier. This lifted its market share to 1.2%, overtaking Tesla’s 0.8%. With lower-cost models and rapid market entry, the Chinese manufacturer has strengthened its position and earlier this year surpassed Tesla’s European sales for the first time, according to JATO Dynamics.
UK Support Measures and Market Developments
The UK government has introduced new purchase incentives to encourage adoption of electric cars. Ford will be the first brand to access the top-level grant of £3,750 for two of its models, while an additional 26 vehicles qualify for £1,500 subsidies. The scheme applies to cars priced below £37,000, with discounts automatically deducted at the point of sale. At the same time, UK vehicle output rose by 5.6% in July, the second consecutive month of growth. Still, the Society of Motor Manufacturers and Traders highlighted ongoing uncertainty, citing weak consumer sentiment and unpredictable trade conditions. Across the EU, 1.011 million fully electric cars were registered in the first seven months of 2025, accounting for 15.6% of new sales. Hybrid models outpaced them, with 2.255 million registrations, fueled by rising demand in France, Spain, Germany, and Italy.
