Tesla Struggles Amid Falling Demand
Tesla’s performance in Europe weakened in July, with sales tumbling 40% compared with the same month in 2024. Figures from the European Automobile Manufacturers’ Association (ACEA) revealed that the company delivered 8,837 vehicles across the EU, the UK, and the European Free Trade Association, down from 14,769 a year earlier. Despite efforts to refresh its Model Y, the brand continues to lose momentum against its competitors.
BYD Strengthens Market Presence
Chinese automaker BYD posted strong growth, with registrations soaring to 13,503 last month—over three times higher than the 4,151 recorded in July 2024. This expansion boosted its European market share to 1.2%, while Tesla held steady at 0.8%. Known for competitively priced models, BYD has been scaling rapidly across Europe, and earlier this year surpassed Tesla’s regional sales for the first time, according to JATO Dynamics.
UK Support and Industry Shifts
In Britain, new subsidies are being rolled out to stimulate demand for electric cars, with Ford set to benefit first. Two of its models will qualify for the maximum £3,750 discount, while 26 additional models will be eligible for £1,500 support under the updated grant programme. The incentives apply only to vehicles priced under £37,000 and are automatically deducted at purchase. Meanwhile, UK vehicle production rose for the second straight month in July, climbing 5.6%, though the Society of Motor Manufacturers and Traders warned of fragile consumer confidence and volatile trade flows. Across Europe, battery-electric cars made up 15.6% of registrations in the first seven months of 2025, while hybrids led the segment with 2.255m units sold, bolstered by growth in France, Spain, Germany, and Italy.
