Tesla's vehicle registrations in Europe fell significantly in 2025, even as battery-electric vehicle sales surged across the region. Data from the European Automobile Manufacturers’ Association shows Tesla's market share halving, while competitors like BYD posted massive gains. The contrast highlights intensifying competition in the shifting automotive landscape.
In December 2025, battery-electric vehicle (BEV) registrations in Europe jumped 50.3% year-over-year to 308,955 units, outpacing petrol-only car sales for the first time. This milestone came amid broader electrified vehicle growth, with plug-in hybrids up 36.7% and conventional petrol hybrids rising 5.8%. Petrol-only sales dropped 19.2%, and diesel sales fell 22.4%. Overall, new car registrations in the European Union (EU) increased 1.8% for the year, though still below pre-pandemic levels, with BEVs capturing 17.4% of the market.
Tesla, however, bucked the trend with declining performance. The company registered 35,280 new vehicles in Europe for December, a 20% decrease from 44,190 the previous year, reducing its BEV market share to 11.4% from 21.5%. For the full year, Tesla's European registrations totaled 238,656 units, down 27%. In the EU specifically, the drop was steeper at nearly 38%.
Chinese rivals capitalized on the EV surge. BYD saw 27,678 registrations in December, a 230% increase, and full-year European sales reached 187,657, up from 50,912 in 2024. SAIC also grew, with December registrations at 31,806 (up 15%) and full-year at 305,717 (up 25%). Globally, BYD sold 2,256,714 BEVs in 2025, surpassing Tesla's 1,636,129 units for the first time.
Including non-EU countries like the UK, Norway, Switzerland, Iceland, and Liechtenstein, BEVs held a 26.3% share in December, compared to 21.7% for petrol-only cars. The data underscores Tesla's challenges amid rising overseas competition and a clear shift toward electrification in Europe.
