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The EV market in the European Union keeps growing, but Tesla, once the poster child of electric vehicle makers, is facing declining sales, according to the European Automobile Manufacturers’ Association’s (ACEA) latest report.
The Texas-based company has seen its sales drop in the EU at an alarming rate from the moment CEO Elon Musk joined the US President’s political campaign and later taking up a role in his government.
Between January and July, Tesla sales in the EU dipped by 43.5%, and in July only, the company sold 42.4% fewer cars in the bloc, both compared to the same period in the previous year.
Meanwhile, Chinese EV makers are mercilessly taking over, the latest rising competitor being BYD, which increased its sales by more than 200% in July and more than 250% during the first seven months in 2025. In July only, BYD secured a market share of 1.1% in the EU, overtaking Tesla’s 0.7%.
Tesla sales still dominated in the January-July period, reaching 1.2% of the overall new car registrations in the EU. However, this is almost half of the 2.1% share the company recorded in the previous year.
BYD’s market share for the January-July period came in at 0.9%, following a mere 0.3% in 2024.
Another Chinese brand, state-owned automobile manufacturer SAIC Motor, which includes brands such as IM Motors, Roewe and MG, has seen its car sales gradually rise in Europe. SAIC Motor secured a 1.9% market share between January and July, after its sales jumped by more than 30% during this period.
Where in Europe did EV sales increase the most?
In the first seven months of 2025, battery electric vehicles accounted for 15.6% of new car registrations in the EU. This compares to just 12.5% in the last year.
Taking a look at the bloc’s biggest economies, in Germany, EV sales grew by 38.4% between January and July. In Spain, sales in this category jumped by a staggering 89.6%, in Italy, EVs added 29% but in France, EV sales slipped by 4.3% in the same period. In the UK, EV sales increased by 31%.
Overall in the EU, new car registrations declined by 0.7% in the first seven months, compared to the previous year.
Out of all the categories, hybrid-electric models continue to grow, remaining the most popular choice of power type and securing 34.7% market share.