Cars sales collapsed more than 40% in the European Union due to the presence of Chinese brands

The electric car market in the European Union (EU) continues to expand at a good pace, but Tesla is going through one of its most difficult moments in the region. According to the latest data from the European Association of Automobile Manufacturers (ACEA), the American company suffered a strong sales contraction while Chinese manufacturers advance rapidly in the block.

Between January and July 2025, Tesla reduced his region in the region by 43.5% year -on -yearwhile in July the fall was 42.4% compared to the same month of 2024.

In this way, its market share remained in just 1.2% in the first seven months of the year, almost half of the 2.1% they had registered in the same period of the previous year.

Chinese car brands beat Tesla

In contrast, Chinese brands show explosive growth. Byd, one of the main competitors, managed to increase its sales more than 200% in July and more than 250% between January and July.

Only in that month, the company reached a 1.1% market share in the EU, exceeding 0.7% of Tesla. Also, its accumulated participation so far this year climbed 0.9%, from a modest 0.3% in 2024.

Another ascent actor is Saic Motor, Chinese state manufacturer owner of brands such as MG, Roewe and IM Motors. The company increased its sales by more than 30% in the January-July period until a 1.9% share in the European market.

In parallel, The set of battery electric vehicles already represents 15.6% of total registrations in the EUcompared to 12.5% ​​of the previous year.

The European Union, a segmented market

The dynamic varies according to country: Germany registered a 38.4% increase in electric sales in the first seven months of 2025; Spain, 89.6%and Italy, 29%, while France showed a 4.3%decline. In the United Kingdom, outside the block but part of the European market, growth was 31%.

In general, The European automotive market showed some weaknesswith a 0.7% drop in the total registration of new vehicles. However, hybrid-electrical models continue to consolidate as the preferred option, with a quota of 34.7%, the highest among all types of propulsion.

In this way, Tesla’s recoil reflects the challenge facing the thrust of Chinese manufacturers, who not only won a price and volume presence, but are also managing to displace the one that was once considered the undisputed leader of the electricity sector.