European Car Sales Rise in July as BYD Overtakes Tesla

Updated At : 11:26 AM Aug 28, 2025 IST

New car registrations in Europe rose 5.9% in July, with growth in Germany offsetting declines in the UK, France and Italy, according to figures released Thursday by the European Automobile Manufacturers Association (ACEA).

Despite an overall increase in electric vehicle sales, Tesla (TSLA.O) lost market share for the seventh consecutive month, falling behind Chinese rival BYD (002594.SZ), which was included in the monthly sales tally for the first time.

Why it matters
European automakers such as Volkswagen (VOWG.DE) are under pressure to counter the rise of Chinese EV makers while ensuring compliance with strict EU emissions rules that encourage EV adoption. On Wednesday, ACEA CEO Ola Källenius co-signed a letter to European Commission President Ursula von der Leyen, warning that the EU’s climate targets for cutting vehicle CO2 emissions — including a 100% cut for cars by 2035 — are now out of reach.

European manufacturers have already posted multi-billion-dollar losses and issued profit warnings, with several citing the impact of U.S. import tariffs.

By the numbers
According to ACEA data, sales across the EU, the UK and the European Free Trade Association climbed to 1.09 million vehicles in July.

• Volkswagen registrations rose 11.6% and Renault (RENA.PA) 8.8%, while Stellantis (STLAM.MI) slipped 1.1%.
• Tesla sales plunged 40.2%, cutting its market share from 1.4% a year ago to 0.8%. BYD sales surged 225.3%, securing a 1.2% share.
• Overall EU car sales rose 7.4%. Battery electric, hybrid electric and plug-in hybrid registrations increased 39.1%, 56.9% and 14.3%, respectively, accounting for 59.8% of total registrations, up from 51.1% in July 2024.

By country, sales grew 11.1% in Germany, but fell 5% in the UK, 7.7% in France, and 5.1% in Italy. Spain, Poland and Austria posted sharp increases of 17.1%, 16.5% and 31.6%, respectively.