Tesla Loses Momentum
Tesla’s performance in Europe deteriorated in July, with registrations down 40% compared with the same month last year. Figures from the European Automobile Manufacturers’ Association (ACEA) showed 8,837 Tesla cars were sold in the EU, the UK, and the European Free Trade Association, a notable decline from 14,769 a year earlier. Even after introducing an updated Model Y, the company continues to face mounting challenges in the region.
BYD Expands Market Share
BYD strengthened its foothold, registering 13,503 vehicles in July, more than tripling its 4,151 registrations from the previous year. This growth lifted its European market share to 1.2%, overtaking Tesla’s 0.8%. Offering competitively priced cars, the Chinese brand has been scaling up its presence aggressively and earlier this year outsold Tesla in Europe for the first time, according to JATO Dynamics.
UK Policy and Industry Shifts
The UK government has rolled out new financial incentives to encourage electric vehicle adoption. Ford will be the first automaker to receive the top £3,750 subsidy for two models, while another 26 vehicles will qualify for a £1,500 grant. Only cars with a list price under £37,000 are eligible, with the discount applied directly at purchase. At the same time, UK car output increased 5.6% in July, marking a second straight month of growth. The Society of Motor Manufacturers and Traders warned, however, that the sector remains under pressure due to fragile consumer confidence and unstable trade conditions. Across the EU, 1.011 million battery-electric vehicles were registered in the first seven months of 2025, accounting for 15.6% of sales. Hybrid models performed even better, with 2.255 million registrations, supported by rising demand in France, Spain, Germany, and Italy.
