Tesla Faces Steep Decline
Tesla’s European sales plunged in July, falling 40% compared with the same period last year. Data from the European Automobile Manufacturers’ Association (ACEA) showed 8,837 Tesla vehicles were registered across the EU, the UK, and the European Free Trade Association, down sharply from 14,769 a year earlier. Even with the revamped Model Y, the company continues to lose traction against rising competition.
BYD Records Strong Growth
BYD’s momentum in Europe accelerated, with registrations climbing to 13,503 in July, more than triple the 4,151 reported the previous year. Its market share has now risen to 1.2%, outpacing Tesla’s 0.8%. With a reputation for affordable pricing, BYD has aggressively expanded its presence across Europe and earlier this year overtook Tesla in regional sales, according to JATO Dynamics.
UK Incentives and Market Outlook
In the UK, new government subsidies are being introduced to boost electric vehicle adoption. Ford will be the first automaker to access the maximum £3,750 grant on two models, while another 26 vehicles qualify for £1,500 discounts. Only cars priced below £37,000 are eligible, with reductions applied automatically at purchase. Separately, UK car manufacturing increased by 5.6% in July, marking a second month of growth. Still, the Society of Motor Manufacturers and Traders warned of uncertainty in the sector due to weak consumer confidence and shifting global trade. Across the EU, fully electric cars accounted for 15.6% of registrations in the first seven months of 2025, while hybrid sales reached 2.255m, driven by gains in France, Spain, Germany, and Italy.
