Tesla’s European EV Market Share Slips as BYD Gains Ground in 2025
Tesla's dominance in the European electric vehicle market showed significant erosion in 2025, with registrations falling 27% year-over-year to 238,656 units. The December figures proved particularly bleak, dropping 20% to 35,280 vehicles. This decline comes as Chinese automaker BYD posted explosive growth across the continent.
BYD's European registrations surged 268.6% for the full year to 187,657 units, with December deliveries more than tripling to 27,678 vehicles. While Tesla maintains a lead in absolute numbers, BYD's market share climbed to 1.4% from just 0.4% in 2024. The battery-electric vehicle segment overall captured 17.4% of the EU market, up from 13.6% the previous year.
Tesla's strategic shift away from one-time Full Self-Driving purchases after February 14—moving to a subscription-only model—coincides with this competitive pressure. The European Automobile Manufacturers' Association data reveals a rapidly shifting landscape where legacy automakers and Chinese rivals are gaining at Tesla's expense.