Chinese electric vehicle (EV) giant BYD has once again overtaken Tesla in the European Union (EU) market, outselling the U.S. automaker for the second straight month, according to fresh data released by the European Automobile Manufacturers’ Association (ACEA) on Thursday.
BYD sold three times as many vehicles in September 2025 compared to August 2024, achieving 201.3% growth and boosting its EU market share to 1.3%, just ahead of Tesla’s 1.2% share. In contrast, Tesla’s sales in the bloc slumped by 36.6%, narrowing its presence from 2% a year earlier.
Other Chinese automakers are also making inroads. SAIC Motor, owner of MG, recorded a sales surge of 59.4% in August, pushing its year-to-date share to 1.9%, making it the tenth-best-selling brand in Europe this year.
The European auto market itself showed resilience, with overall sales across the EU, Britain, and the European Free Trade Association climbing 4.7% to 0.8 million units in August. Key European manufacturers also reported growth: Volkswagen registrations rose 4.8%, Renault jumped 7.8%, while Stellantis ended its slump with a 2.2% increase, marking its first positive growth since February 2024.
Electric and hybrid models remain the main drivers of expansion. Registrations of battery-electric cars surged 30.2%, hybrid-electric sales soared 54.5%, and plug-in hybrids rose 14.1%. Collectively, electrified vehicles now account for 62.2% of all registrations, up sharply from 52.8% in August 2024.
Industry experts warn that Europe’s car sector faces mounting challenges, including U.S. tariffs, rising Chinese competition, and the struggle to profitably meet EU emission rules. In response, carmakers are pushing plug-in hybrids as an affordable and profitable compliance option, while Chinese brands are leveraging the same strategy to ease tariff impacts and win over skeptical European buyers.