Europe’s July Car Sales Up, BYD Surpasses Tesla in EV Market

Post by : Monika

Photo: Reuters

In July, the car market in Europe showed a clear rise after months of mixed results. Sales of new cars went up by 5.9% compared to last year, with Germany playing the biggest role in this growth. The rise in Germany’s numbers helped to balance the drops in other large countries such as the United Kingdom, France, and Italy.

At the same time, the electric vehicle (EV) market in Europe showed one of its most important changes in recent years. A Chinese carmaker, BYD, reported record-breaking sales, while Tesla’s sales fell sharply. This shift marks a new chapter in the competition between global EV makers in Europe.

The Numbers Behind the Growth

Across the European Union (EU), the United Kingdom, and the European Free Trade Association (EFTA) nations, a total of 1.09 million cars were sold in July 2025. This was a solid increase compared to July 2024.

• Germany led the way with an 11.1% rise in new car registrations.
• Spain showed even stronger growth with a 17.1% increase.
• Poland was close behind with 16.5% growth, while Austria had an even bigger jump at 31.6%.
• In contrast, some of Europe’s largest car markets saw a fall in sales:
• The UK recorded a 5% decline.
• France fell by 7.7%.
• Italy dropped by 5.1%.

This mixed picture showed that while some regions are still struggling, strong performances in Germany and Eastern Europe helped to push the overall European numbers upward.

• How Car Companies Performed
• The sales results also highlighted how different car brands are doing in this changing market.
• Volkswagen: Europe’s largest carmaker saw its sales grow by 11.6% year-on-year, a very healthy rise.
• Renault: The French brand also performed well, with an 8.8% increase in sales.
• Stellantis: Unlike its rivals, this group, which owns Fiat, Peugeot, and Jeep, reported a small 1.1% drop.
• These results showed that some traditional carmakers are adapting better to the new market trends than others.
• BYD Surges, Tesla Struggles
• The biggest story in July was the shift in the electric vehicle market.
• BYD, a Chinese company, saw its sales in Europe rise by an incredible 225% compared to last year. This surge helped BYD capture 1.2% of the European market share.

Tesla, once the leader of EV sales worldwide, suffered a major setback. Its sales dropped by 40%, and its market share fell to 0.8%.

This change means BYD has now firmly moved ahead of Tesla in Europe’s EV market. Just a few years ago, Tesla was considered untouchable in the electric car race, but the rise of competitors like BYD shows how quickly things can change.

Types of EVs: Strong Growth in Every Category

• Electric vehicles are not just about one type of car. There are three major categories:
• Battery Electric Vehicles (BEVs) – These are fully electric cars that run only on batteries. Sales rose by 39.1% in July.
• Hybrid Electric Vehicles (HEVs) – These cars use both a fuel engine and an electric motor. Sales jumped by 56.9%, making them the fastest-growing segment.
• Plug-in Hybrid Electric Vehicles (PHEVs) – These can be charged like a BEV but also have a fuel engine. Sales grew by 14.3%.

Together, all electric and hybrid cars made up 59.8% of all new cars sold in Europe in July, compared to 51.1% a year ago. This means nearly 6 out of every 10 new cars sold are now electric or hybrid, showing how quickly Europe is shifting away from traditional fuel-powered vehicles.

Why Germany Is Leading

Germany’s car market is Europe’s largest, and its strong performance in July made a big difference. An 11.1% rise in sales in Germany helped cover the weaker numbers from the UK, France, and Italy.

Germany is home to many of the world’s biggest carmakers, such as Volkswagen, BMW, and Mercedes-Benz, and the country has been investing heavily in electric and hybrid cars. Strong domestic demand, government support, and new EV models have boosted its sales.

This leadership role makes Germany a key player in Europe’s move toward cleaner transportation.

What the Shift Means for Tesla and BYD

Tesla’s fall in sales raises questions about its future in Europe. The company has been facing strong competition not just from BYD but also from European brands launching their own EVs. Problems such as limited new models, customer complaints about quality, and pricing issues may also be hurting Tesla’s image.

For BYD, this is a big breakthrough. The company started in Europe only a few years ago but has grown quickly thanks to cheaper prices, longer driving range, and strong production capacity. Overtaking Tesla is not just about numbers—it also shows that Chinese companies are now major players in the global car industry.

Why This Matters for Students and Everyday Life

• For students and young people, these numbers may seem like business news, but they carry an important message about the future.
• Cleaner Environment – With more electric cars on the roads, there will be less air pollution, which means cleaner air to breathe.
• New Jobs – The growth of EV companies in Europe means more factories, more technology jobs, and more opportunities in green industries.
• Global Competition – Companies from China, Europe, and the U.S. are all fighting for market share, which often leads to better products and lower prices for customers.

Daily Life – Seeing more EVs in cities and towns means charging stations, quieter streets, and less dependence on petrol or diesel.

Market Shifts Across Europe

• The July results also highlight how different countries are moving at different speeds when it comes to buying new cars.
• In Western Europe, big markets like France, Italy, and the UK are seeing slower sales, partly because of weaker economies and higher living costs.
• In Eastern and Southern Europe, countries like Spain, Poland, and Austria are seeing much faster growth, showing stronger consumer demand.
• This uneven growth shows that while Europe overall is moving toward electric cars, each country’s journey is unique.

The Bigger Picture: Europe’s Green Future

Europe has been pushing for cleaner transport for years. Many governments have set deadlines for ending the sale of petrol and diesel cars, and incentives are being offered for people to buy EVs.

The July sales numbers show that the strategy is working. With nearly 60% of new cars being electric or hybrid, Europe is quickly becoming a leader in green transportation. This also supports the fight against climate change and reduces dependence on fossil fuels.

• Car sales in Europe rose 5.9% in July 2025, with 1.09 million cars sold.
• Germany saw strong growth (+11.1%), helping offset declines in the UK, France, and Italy.
• BYD’s sales surged 225%, giving it a 1.2% market share, while Tesla’s sales dropped 40%, leaving it at 0.8%.
• Volkswagen (+11.6%) and Renault (+8.8%) performed well, while Stellantis (-1.1%) fell.
• EVs (BEVs, HEVs, PHEVs) made up 59.8% of all new cars sold, up from 51.1% last year.
• The shift shows Europe’s move toward a cleaner, greener future and growing global competition in the car industry.

The July car sales report for Europe is more than just numbers. It tells the story of a market in transition. Traditional carmakers like Volkswagen and Renault are adjusting well, while others like Stellantis struggle. More importantly, it shows how fast electric cars are becoming the norm, not the exception.

BYD’s rise and Tesla’s fall highlight the speed of change in global competition. For Europe, this means new opportunities, cleaner cities, and a step closer to its climate goals.

For everyday people—students, workers, and families—it means the cars they see on the roads are changing quickly, and the future of driving will look very different from the past.

European car sales July 2025