Tesla experienced a severe downturn in European markets during July, while Chinese competitor BYD saw massive gains.
Registrations of the Elon Musk-led brand fell to 8,837 vehicles compared to 14,769 the previous year, marking a 40 per cent decrease.
However, Chinese manufacturer BYD demonstrated extraordinary momentum, achieving 13,503 registrations compared to just 4,151 12 months prior.
This dramatic reversal represents more than triple the growth rate for BYD, which has secured 1.2 per cent of the European market.
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BYD massively increased its European sales in July, while Tesla registrations fell
|BYD/GETTY
Tesla's share has diminished to 0.8 per cent, according to fresh data from the European Automobile Manufacturers' Association.
The shifting dynamics underscore mounting pressure on Elon Musk's company as Chinese manufacturers gain ground across the continent.
BYD's strategic push into European territories has yielded impressive results, with the company surpassing Tesla's sales performance for the first time during the spring, as reported by market research firm JATO Dynamics.
The Chinese manufacturer's competitive pricing strategy has resonated with European consumers seeking more affordable electric alternatives.
This achievement forms part of a broader pattern of Chinese automotive brands establishing stronger footholds across European markets.
Their expansion tactics, centred on offering competitively priced models, have disrupted established players and reshaped the competitive landscape.
The success demonstrates how rapidly Chinese manufacturers have evolved from newcomers to serious contenders in Europe's electric vehicle sector.
Europe's automotive sector reveals a notable preference shift, with hybrid-electric vehicles significantly outperforming pure battery models.
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European drivers have largely turned their backs on Tesla
| TESLADuring 2025's first seven months, hybrid registrations reached 2.25 million units, while battery-electric vehicles achieved 1.01 million, representing 15.6 per cent market share.
Major markets drove hybrid growth, including France and Spain with 30.5 and 30.2 per cent increases respectively, alongside Germany at 10.7 per cent and Italy at 9.4 per cent.
ACEA Director General Sigrid de Vries highlighted infrastructure requirements, stating Europe "must continue to expand public recharging infrastructure, secure lower recharging prices, and ensure well-coordinated purchase incentives schemes" to boost adoption rates.
In the latest data from the Society of Motor Manufacturers and Traders (SMMT), Tesla has sold 23,708 vehicles in the UK, worth a market share of 2.01 per cent.
BYD has dramatically increased its presence across Europe
| BYDDespite this, BYD is consolidating its foothold in the UK market with 22,574 new sales, representing an impressive 514 per cent growth in sales compared to last year.
With the rise of Chinese car brands, BYD could continue to increase its market share in the UK, alongside other manufacturers like Jaecoo and Omoda.
It comes as Labour extends the eligibility for the Electric Car Grant, with Ford becoming the first brand to benefit from the full £3,750 incentive.
Transport Secretary Heidi Alexander stated: "We're putting money back in people's pockets and making it easier and cheaper for families to make the switch to electric, by delivering discounts of up to £3,750 on EVs."