BYD Surpasses Tesla in Market Share as EV Sales Surge
Europe’s Car Market Sees Strongest Growth Since April 2024. Car sales across Europe rose sharply in July, marking the strongest monthly increase in over a year, according to new data released by the European Automobile Manufacturers Association (ACEA) on Thursday.
In 2022, Tesla has cut starter prices for its Model 3 and Model Y cars by as much as 9% in China, reversing a trend of increases across the industry amid signs of softening demand in the world’s largest auto market.
Total car registrations in the European Union, United Kingdom, and European Free Trade Association (EFTA) climbed 5.9%, reaching 1.09 million units. This is the biggest monthly gain since April 2024, providing a much-needed lift for a car industry facing pressure from tightening regulations, slowing demand, and growing global competition.
Plug-In Hybrid and EV Sales See Record Growth
July was a particularly strong month for electrified vehicles. Sales of plug-in hybrid electric vehicles (PHEVs) in the EU posted their largest jump since January 2023, when ACEA began tracking the data. Battery electric vehicles (BEVs) also recorded their biggest increase since August 2023.
Germany, Europe’s largest car market, led the EV surge. The country recorded a 58% rise in BEV sales and an 83.6% increase in PHEV sales in July. This boost followed the introduction of a new electric vehicle incentive plan in June, replacing a previous subsidy scheme scrapped in 2023.
Tesla Falls Behind as BYD Makes a Strong Entry
Despite the growth in EV demand, Tesla’s market share declined for the seventh straight month. The American EV giant’s sales dropped by 40.2%, shrinking its market share in Europe to 0.8%, down from 1.4% in July 2024.
In contrast, Chinese automaker BYD (Build Your Dreams) made a strong debut in the ACEA monthly sales report. BYD sales surged by 225.3%, giving the company 1.2% of the European market — ahead of Tesla.
Rising Sales, But Rising Challenges
While car sales are rising, Europe’s auto industry still faces major challenges. These include:
- New U.S. tariffs on car imports
- Aggressive pricing and growth from Chinese EV makers
- Costly EU emissions targets, especially the 2035 goal of zero emissions from all new cars
- In a letter to European Commission President Ursula von der Leyen this week, ACEA CEO Ola Kaellenius warned that these emission targets are becoming “unfeasible” under current market conditions.
Sales Snapshot: Winners and Losers
- Volkswagen Group: +11.6%
- Renault: +8.8%
- Stellantis: -1.1%
- BYD: +225.3%
- Tesla: -40.2%
Total EU car sales rose 7.4% in July.
Combined sales of BEVs, PHEVs, and hybrids increased 39.1%, 14.3%, and 56.9%, respectively. Together, they made up 59.8% of total registrations in the EU — up from 51.1% in July 2024.
Country-by-Country Performance
- Germany: +11.1%
- UK: -5.0%
- France: -7.7%
- Italy: -5.1%
- Spain: +17.1%
- Poland: +16.5%
- Austria: +31.6%
Outlook
While July’s results show signs of recovery, industry leaders remain cautious. Strong EV demand is promising, but supply chain risks, rising competition, and strict regulations will continue to test Europe’s carmakers in the months ahead.
