- According to data released by the ACEA, new EU car registrations of BYD models surged by 206.4% YoY in July, reaching 9,698 units.
- In contrast, Tesla recorded only 6,600 registrations in the EU market during the same period, representing a decline of more than 42% compared with the previous year.
On August 28, the European Automobile Manufacturers’ Association (ACEA) released its latest data showing that new car registrations in Europe rose 5.9% year-on-year (YoY) in July to 1.09 million units. For the first time, BYD was included in the monthly statistics—and made a notable breakthrough.
In the EU market, BYD registered 9,698 new cars in July, a surge of 206.4% YoY, lifting its market share to 1.2% and surpassing Tesla for the first time. In the wider European region—including the UK, Norway, Switzerland, and five other non-EU countries—BYD registrations reached 13,503 units, representing a 225.3% increase from a year earlier.
By contrast, Tesla’s EU registrations fell sharply to just 6,600 units in July, down more than 42% YoY. Across the broader European market, Tesla registered 8,837 units, a 40% decline, with its market share shrinking to 0.8%. This means BYD’s monthly registrations in Europe exceeded Tesla’s by more than 50%.
Other Chinese automakers also maintained growth momentum in Europe. SAIC Motor registered 23,316 units in July, up 13.1% YoY.
Performance among European legacy automakers, however, was mixed. Volkswagen and Renault both posted gains, with registrations rising 11.6% and 8.8% respectively, while Stellantis slipped 1.1%.
Overall, EU passenger car registrations climbed 7.4% in July to 915,000 units. Germany stood out with an 11.1% increase, while France, Italy, and the UK saw declines of 7.7%, 5.1%, and 5% respectively.
The primary driver of growth pertains to new energy vehicles (NEVs). ACEA data showed battery-electric vehicles (BEVs) accounted for 15.6% of the EU market as of July 2025, up from 12.5% a year earlier.
Across all NEVs — including BEVs, HEVs, and PHEVs—registrations rose 39.1%, 56.9%, and 14.3% respectively, with combined penetration reaching nearly 60% of the EU market, compared to 51.1% a year earlier.
Yet industry concerns linger. Tariffs pushed by former U.S. President Donald Trump have disrupted supply chains, forcing several automakers to lower profit forecasts.
Meanwhile, the EU’s looming regulatory deadlines remain a source of pressure. Current policy calls for a complete ban on internal combustion engine (ICE) vehicle sales by 2035, though several automakers now argue the target is “no longer feasible” given the market environment.
According to Reuters, ACEA CEO Ola Kaellenius has co-signed a letter to the European Commission urging policymakers to reassess their approach. The EU has already conceded on one front, delaying the rollout of tougher emissions standards by three years to ease the burden on automakers.
The rapid rise of Chinese brands in Europe is now pushing legacy manufacturers such as Volkswagen to accelerate the launch of new EV models in order to remain competitive in the fast-growing electric market, while also ensuring compliance with EU regulations designed to spur EV adoption.
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