Chinese electric vehicle manufacturer BYD sold three times more new cars in the European Union last month compared to August 2024, outpacing U.S. rival Tesla for the second consecutive month, according to data released Thursday by the European Automobile Manufacturers’ Association (ACEA).
The data shows that BYD’s sales soared 201.3%, raising its market share to 1.3%, while Tesla’s EU registrations plunged by 36.6%, lowering its share to 1.2% from 2% a year earlier. Another Chinese automaker, MG-owner SAIC Motor, saw sales jump 59.4% in August, bringing its year-to-date market share to 1.9% and making it the bloc’s tenth best-selling brand in 2025.
The overall car market in the European Union, the UK, and the European Free Trade Association expanded by 4.7% to 800,000 vehicles in August, buoyed by demand for plug-in hybrid (PHEV) and battery-electric vehicles (BEVs). Total EU car sales increased 5.3%.
Stellantis reported its first year-on-year sales growth in Europe since February 2024, with registrations up by 2.2%. Volkswagen and Renault also posted increases of 4.8% and 7.8% year-on-year, respectively.
Automakers have accelerated plug-in hybrid sales to meet emissions standards, offering more affordable and profitable alternatives to fully electric vehicles. Chinese brands, in particular, have leaned on this technology to reduce the impact of EU tariffs on Chinese-made EVs and to appeal to European drivers wary of dependence on China.
Europe’s auto industry continues to grapple with structural headwinds, including fresh U.S. import tariffs, intensifying competition from Chinese manufacturers, and the challenge of building profitable business models under the bloc’s evolving EV regulations.
