TLDR
- BYD overtook Tesla in EU sales for the second month running with 201% year-over-year growth in August
- Tesla’s European market share dropped from 2% to 1.2% while BYD captured 1.3% of the EU market
- EU electric vehicle sales jumped 30.2% as electrified cars reached 62.2% of total registrations
- Stellantis returned to growth after year-long decline while Volkswagen and Renault posted gains
- Chinese automakers expand European presence with SAIC Motor becoming tenth-largest EU brand
Chinese electric vehicle maker BYD has delivered another blow to Tesla’s European operations. The company tripled its August sales compared to last year, capturing the EU market lead for the second consecutive month.
BYD’s European registrations surged 201% year-over-year in August. This growth secured a 1.3% market share across the European Union, according to data from the European Automobile Manufacturers’ Association.
Tesla experienced the opposite trajectory. The American EV pioneer’s sales collapsed 36.6% in August, shrinking its EU market share from 2% to 1.2%.
The shift represents a major change in European electric vehicle dynamics. Chinese manufacturers continue gaining ground against established players.
Tesla Struggles Across Major European Markets
Tesla’s problems extended far beyond the overall EU figures. The company faced steep declines across multiple key markets.
German sales dropped 39% to 1,441 units in August. This decline occurred despite overall German EV sales jumping 46% during the same period.
France delivered worse news with Tesla sales falling 47% to 1,331 units. Belgium saw an even sharper 61% decline to 585 registrations.
Danish registrations dropped 42% to 473 units. Year-to-date performance shows Tesla sales down 39% in France, 56% in Belgium, and 54% in Denmark.
Norway provided Tesla’s only European bright spot. Sales increased 21% to 3,014 units in August, with year-to-date Norwegian sales up 26% to nearly 17,000 units.
European EV Market Shows Strong Growth
The broader European automotive market demonstrated healthy expansion. EU car sales rose 5.3% in August, driven primarily by electrified vehicles.
Battery electric vehicle registrations jumped 30.2% year-over-year. Hybrid electric vehicles performed even better with 54.5% growth. Plug-in hybrids increased 14.1%.
Electrified vehicles now represent 62.2% of all EU registrations. This compares to 52.8% in August 2024, showing rapid electric powertrain adoption.
Traditional European automakers delivered mixed but generally positive results. Stellantis returned to growth for the first time since February 2024, with registrations up 2.2%.
Volkswagen posted 4.8% sales growth while Renault achieved 7.8% year-over-year gains.
Chinese Automakers Expand European Footprint
Chinese manufacturers continue their European expansion beyond BYD’s success. SAIC Motor, owner of the MG brand, recorded 59.4% August sales growth.
This performance gives SAIC Motor 1.9% year-to-date market share, making it the tenth best-selling brand in the EU through eight months.
Stock performance reflects these market dynamics. BYD’s U.S.-listed shares have gained nearly 20% in 2025. Tesla stock has risen 9.6% over the same period.
BYD achieved 1.3% EU market share in August while Tesla held 1.2%. Overall EU car sales across the union, Britain, and European Free Trade Association reached 0.8 million vehicles, up 4.7% from last year.
