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Tesla's sales in Europe plummet by 40% in July

Decline in Tesla's European car sales: The electric vehicle manufacturer witnessed a fall of 40% in car sales in July, with the total number sold reaching 8,800 units. This downturn in Tesla's performance provided an opportunity for Chinese EV manufacturers to expand their market share.

Decrease in Tesla's sales by 40% in July across Europe
Decrease in Tesla's sales by 40% in July across Europe

Tesla's sales in Europe plummet by 40% in July

In the bustling world of electric vehicles (EVs), Europe is making a significant stride. According to recent reports, the continent saw a 33% increase in EV sales in July, totalling 1.37 million units. This growth continues the trend of a 26% year-to-date increase, with electric vehicles now representing 17.4% of almost 8 million vehicles sold in Europe.

Amidst this surge, Tesla, a company once leading the EV charge, finds itself in a somewhat unexpected position. Sales in Europe for the year 2025 stand at 119,000 units, representing a 50% decrease year-over-year. This decline is also evident in the UK, where Tesla delivered 23,700 cars, a significant decrease compared to previous years. In July alone, sales dropped by about 60 percent, with fewer than 1,000 cars delivered.

On the other hand, Chinese electromobility manufacturers like BYD and SAIC (including the MG brand) have expanded their market share in Europe significantly. BYD, in particular, has seen a remarkable rise. In July, the company sold more than 13,500 electric vehicles in Europe, an increase of more than 200% compared to previous months. This growth is even more impressive when considering that BYD's sales in Europe for the same period last year were only 6,300 units.

BYD's success is not just limited to July. So far in 2025, the company has sold 84,000 cars in Europe, up by 63,000 compared to the same period last year. This growth is partly due to lower tariffs for plug-in hybrids compared to pure electric vehicles, a factor that Chinese brands have capitalised on. As a result, Chinese brands now hold around 5% market share in Europe, doubling from the previous year.

Meanwhile, SAIC Motor, the parent company of MG, Roewe, and IM Motors, sold 23,300 vehicles, marking a 13% increase year-on-year.

The UK comes second in Europe with 254,000 electric cars sold in July, while Germany leads the pack with 297,000 units sold. France ranks third with 167,000 electric cars sold in the same month. Interestingly, the UK has the highest EV market penetration among the big three European countries.

Despite Tesla's decline, the growth in EV sales in Europe continues unabated. The total number of electric cars sold in Europe in July 2025 is more than the combined sales of Tesla and BYD in the same month. This growth is a testament to Europe's commitment to a sustainable future and the increasing appeal of electric vehicles to consumers.

The launch of the refreshed Model Y did not help Tesla's sales in Europe, and the company increased production at Giga Berlin in Germany, but this did not improve sales. It remains to be seen how Tesla will navigate this challenging period and regain its lost ground in the European EV market.

In conclusion, while Tesla grapples with declining sales in Europe, Chinese manufacturers like BYD and SAIC are making significant inroads into the market. The UK, Germany, and France lead the way in EV sales, with the UK having the highest market penetration. Overall, the growth in EV sales in Europe continues, underscoring the continent's commitment to a sustainable future.

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