TLDR
- BYD overtook Tesla in EU sales for the second consecutive month, with registrations jumping 201% year-over-year in August
- Tesla’s EU sales dropped 36.6% in August, reducing its market share from 2% to 1.2% while BYD captured 1.3%
- Overall EU car sales rose 5.3% in August, driven by electrified vehicles which now account for 62.2% of registrations
- Stellantis returned to growth for the first time since early 2024, while Volkswagen and Renault also posted gains
- Chinese automakers continue expanding in Europe, with SAIC Motor becoming the tenth best-selling brand in the EU
Chinese electric vehicle manufacturer BYD has delivered a knockout punch to Tesla in the European market. The company sold three times as many cars in August compared to the same month last year.
BYD’s European registrations jumped 201% year-over-year in August. This surge gave the company a 1.3% market share across the European Union.
Tesla faced a completely different story. The American EV maker’s sales plummeted 36.6% in the same period. This decline dropped Tesla’s EU market share from 2% to just 1.2%.
The sales figures mark the second consecutive month that BYD has outsold Tesla in Europe. This represents a major shift in the European electric vehicle landscape.
Tesla’s European Troubles Run Deep
Tesla’s problems weren’t limited to the overall EU numbers. The company faced steep declines across major European markets.
In Germany, Tesla sales dropped 39% to just 1,441 units in August. This happened even as overall EV sales in Germany jumped 46%.
France delivered more bad news for Tesla. Sales fell 47% to 1,331 units in the country. Belgium saw an even steeper 61% decline to 585 registrations.
Denmark wasn’t any better for the American automaker. Tesla registrations dropped 42% to 473 units in August.
The year-to-date numbers paint an even bleaker picture. Tesla sales have fallen 39% in France, 56% in Belgium, and 54% in Denmark through the first eight months of 2025.
Norway provided Tesla’s only bright spot in Europe. The company sold 3,014 cars there in August, marking a 21% increase from last year. Norwegian sales have climbed 26% year-to-date to nearly 17,000 units.
European Auto Market Shows Strength
The broader European car market displayed healthy growth in August. Sales across the EU, Britain, and the European Free Trade Association rose 4.7% to 0.8 million vehicles.
EU car sales specifically increased 5.3% in August. Electrified vehicles drove much of this growth across the region.
Battery electric vehicle registrations surged 30.2% in August. Hybrid electric vehicles saw even stronger growth at 54.5%. Plug-in hybrids increased by 14.1%.
These electrified vehicles now account for 62.2% of all EU registrations. This compares to 52.8% in August 2024, showing rapid adoption of electric powertrains.
Traditional European automakers showed mixed but generally positive results. Stellantis returned to sales growth for the first time since February 2024. The company’s registrations rose 2.2% compared to August last year.
Volkswagen posted a solid 4.8% increase in August sales. Renault performed even better with 7.8% year-over-year growth.
Chinese automakers continued their European expansion beyond just BYD. SAIC Motor, which owns the MG brand, recorded a 59.4% jump in August sales. This performance has given SAIC Motor a 1.9% year-to-date market share, making it the tenth best-selling brand in the EU.
Stock performance has reflected these market dynamics. BYD’s U.S.-listed shares have risen nearly 20% in 2025. Tesla stock has gained 9.6% over the same period, trailing its Chinese rival’s performance.
Stay Ahead of the Market with Benzinga Pro!
Want to trade like a pro? Benzinga Pro gives you the edge you need in today's fast-paced markets. Get real-time news, exclusive insights, and powerful tools trusted by professional traders:
- Breaking market-moving stories before they hit mainstream media
- Live audio squawk for hands-free market updates
- Advanced stock scanner to spot promising trades
- Expert trade ideas and on-demand support
