Tesla Loses EV Sales Lead to BYD in Europe’s Two Largest Markets

BYD finished 2025 ahead of Tesla in EV sales in Germany and the UK, Europe’s largest electric-car markets.
Tesla Loses EV Sales Lead to BYD in Europe’s Two Largest Markets
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China’s BYD topped Tesla in 2025 electric-car sales in Germany and the United Kingdom. The two countries rank as Europe’s largest EV markets by volume. Registration data shows BYD gaining more sales share while Tesla recorded weaker totals.

BYD EV sales in Germany climb as Tesla registrations fall

Germany’s Federal Motor Transport Authority recorded 23,306 BYD registrations in 2025. That figure rose roughly eightfold from the prior year, while Tesla recorded 19,390 registrations, and its annual total dropped about 48%.

Furthermore, December showed the same trend. BYD registered 4,109 vehicles in Germany during December 2025. Meanwhile, Tesla registered 2,032 vehicles, and the month’s total fell 48% year on year. Germany registered 545,142 battery-electric vehicles in 2025, up 43.2%.

The data suggests BYD added volume during a growing EV year. Germany expanded battery-electric registrations by 43.2% in 2025. That growth created room for share changes inside the category.

UK electric car registrations tilt toward BYD in 2025

In the UK, BYD ended 2025 with 51,422 registrations, ahead of Tesla’s 45,513. BYD moved ahead during September and kept the lead into year-end. BYD UK said it reached 2.55% market share for 2025.

BYD also reported 7,683 registrations during December 2025. The company described 2025 as its strongest UK year so far. It also said its market share rose from 0.45% in 2024.

Policy has shaped pricing pressure in Britain. UK officials have said the country does not plan EU-style tariffs on Chinese electric vehicles. That stance has supported faster entry for Chinese brands.

What the shift means for Tesla vs BYD in Europe

The Germany and UK results add to a wider change in the EV leaderboard. Tesla reported 1,636,129 deliveries in 2025. It also reported 418,227 deliveries in the fourth quarter.

Tesla also reported 46.7 GWh of energy storage deployments for 2025. The company continues to position autonomy and AI as key priorities. However, vehicle demand remains the main driver of registrations in Europe.

Fleet operators account for a large share of UK EV purchases. They often prioritize servicing speed and predictable resale values. In Germany, charging coverage and dealer reach also influence registrations so distribution investments can matter as much as pricing. Both companies may expand local inventory to shorten delivery times for buyers.

In addition, BYD’s volume push has relied on broader model coverage and sharper price points. In Europe, buyers compare range, charging access, and monthly payments. Tesla now faces tougher lineup competition across mass-market segments.

The 2025 figures also highlight how policy choices affect competition. Tariff policy can change pricing gaps at the showroom. As 2026 begins, both brands will likely protect their share through financing and product updates. 

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