Sales of Tesla, Inc. (NASDAQ:TSLA) vehicles in Europe fell sharply in September, even as Chinese rival BYD Company Limited made strong gains, underscoring shifting competitive dynamics in the region’s electric vehicle market.
According to data from the European Automobile Manufacturers’ Association, Tesla registrations in the European Union, EFTA, and the UK dropped 10.5% year-on-year to 39,837 units last month. The company’s market share also narrowed to 3.2% from 4.0% a year earlier. However, on a monthly basis, sales showed a sharp rebound from August’s 14,831 units.
BYD (USOTC:BYDDY), meanwhile, posted explosive growth. New car registrations surged 398% year-on-year to 24,963 units in September, lifting its market share to 2% from just 0.4% the previous year. The steep increase reflects the company’s relatively small base in 2024, but also signals its rapid expansion across European markets. BYD’s monthly sales also rose strongly compared to August, when it sold 11,455 units.
The broader European market continued to recover, with overall new car registrations rising 10.7% year-on-year to 1.24 million units in September, supported by growing demand for electric and hybrid models. Traditional petrol and diesel sales continued to decline.
Hybrid vehicles held the largest share of the market at 34.7%, followed by petrol at 27.7%. Battery-electric vehicles, Tesla’s core segment, accounted for 16.1% of the market.
While Tesla’s decline was less pronounced than in previous months, it still reflects increasing competitive pressure. European automakers are rapidly expanding their EV lineups, while BYD continues to grow aggressively in the region with more affordable models. Tesla’s brand image in Europe also faces challenges, weighed down by public criticism of CEO Elon Musk.
Globally, Tesla achieved record deliveries in the third quarter, as customers rushed to purchase vehicles ahead of the expiration of U.S. EV tax incentives. Still, its quarterly profit fell short of market expectations, with margins squeezed by heavy investment in artificial intelligence and robotics.
BYD has outpaced Tesla in European sales during several months of 2025, fueled by its international expansion strategy. Both companies remain locked in a price war in China — their largest market — which has further strained margins in recent quarters.