On the Dash:
- BYD tripled its EU sales in August 2025, overtaking Tesla for the second consecutive month, while other Chinese brands, such as SAIC Motor, also showed strong growth.
- Tesla’s EU sales dropped 36.6%, highlighting increased competition and the growing appeal of Chinese EVs to European buyers.
- Plug-in hybrid and battery-electric vehicle sales now account for over 62% of EU registrations, indicating a significant shift in consumer preferences and regulatory compliance strategies.
On Thursday, data from the European Automobile Manufacturers Association (ACEA) showed that Chinese EV maker BYD sold three times as many new cars in the European market as it did in August 2024, surpassing its U.S. competitor Tesla for the second month in a row.
BYD’s sales surge highlights how Chinese automakers are expanding their presence in the European market. Meanwhile, Tesla’s EU sales declined 36.6%, reducing its market share to 1.2% from 2% a year earlier, as BYD gained 1.3% of the market.
Total EU car sales, including Britain and the European Free Trade Association, increased by 4.7% in August to 0.8 million units. Buyers are increasingly opting for battery-electric, hybrid, and plug-in hybrid vehicles, which together accounted for 62.2% of new car sales, up from 52.8% in August 2024.
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Other Chinese EV makers also experienced strong growth. MG-owner SAIC Motor increased sales by 59.4% in August, securing a 1.9% market share year-to-date and ranking as the bloc’s tenth best-selling brand so far this year.
However, European automakers reported mixed results. For instance, Volkswagen and Renault boosted registrations by 4.8% and 7.8% year-over-year, while Stellantis grew by 2.2%, marking its first sales increase since February 2024. Plug-in hybrid and battery-electric models contributed to overall market growth.
Further, the EU automotive industry continues to face ongoing challenges, including U.S. import tariffs, competition from Chinese brands, and increasing costs associated with meeting stringent EV regulations. Automakers have emphasized PHEVs, which offer more affordable and profitable options than pure battery-electric models. Chinese brands have used PHEVs to mitigate tariff impacts and appeal to Europe’s China-skeptical buyers.
BYD has been actively promoting its vehicles, including showcasing the Dolphin Surf EV in Berlin. The company’s rapid expansion illustrates how Chinese automakers leverage competitive pricing, innovative technology, and strategic vehicle offerings to capture market share in Europe’s fast-evolving EV market.
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