UK Electric Vehicle Sales Falter, German Sales Surge Ahead, BYD Outperforms Tesla in Sales
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In a significant shift towards electric vehicles (EVs), Germany set a new record for EV adoption in July, with 97.5% of new cars being battery electric vehicles (BEVs). Meanwhile, the UK's growth in BEV sales has been more sluggish, primarily due to a weaker overall new car market and slower ramp-up in July 2025.
Germany's BEV market has seen robust expansion, with a record production of 864,000 electric cars in the first half of 2025. This includes 635,000 BEVs, and continued strong monthly growth through July. The UK, on the other hand, experienced its weakest July for new car sales since 2022, which dampened sales momentum overall.
Despite the growth in BEV sales in the UK, the increase was considered "modest" compared to a 34.6% increase earlier in the year, indicating a slowdown. BEVs accounted for 21.3% of new car registrations in the UK in July, indicating significant penetration, but the growth rate pace is not matching Germany’s accelerated adoption.
The broader European context reveals that Germany is one of the largest contributors to EU BEV sales growth, with a 35.1% increase in H1 2025. The UK, outside the EU, shows growth but at a slower rate. Subsidies, incentives, and market conditions differ, influencing buyer behavior.
Slower overall UK new car market and more cautious consumer demand might reflect economic factors, subsidy adjustments, or infrastructure differences affecting EV uptake comparatively. Mike Hawes, SMMT CEO, said that confirming which models qualify for the new EV grant and compelling manufacturer discounts could increase demand for the rest of this year and into next.
In July, 48,614 new BEVs were sold in Germany, accounting for an 18.4% market share and increasing by 58% compared to the same month in 2024. In contrast, the UK registered 29,825 new BEVs, accounting for a 21.3% market share and increasing by 9.1% compared to the same month in 2024.
Chinese carmaker BYD, which makes both BEVs and plug-in hybrid EVs (PHEVs), has seen a significant increase in sales. In July, BYD sold 3,184 new models in the UK, up 514% over the same period a year earlier. However, Tesla's sales in the UK have declined, with only 987 cars sold in July, a drop of nearly 60% compared to the same month in 2024.
Plug-in hybrid EVs saw a stronger July in the UK, with 17,489 new cars registered, accounting for a 12.5% market share and increasing by 33% compared to July 2024. In Germany, only 1,110 new Teslas were sold in July, down 55.1% compared to the same month in 2024. For the first seven months of the year, 10,000 Teslas have been sold, down 57.8% compared to the same period a year earlier.
Joshua S. Hill, a Melbourne-based journalist who has been writing about climate change, clean technology, and electric vehicles for over 15 years, has been reporting on electric vehicles and clean technologies for Renew Economy and The Driven since 2012.
References:
- SMMT: UK new car market contracts in July 2025
- ZDNet: UK's new car market contracts in July 2025
- EU Observer: EU car market sees surge in EV sales
- Bloomberg: Germany's electric car market surges in July 2025
- CleanTechnica: Germany sees record electric car production in H1 2025
- Renew Economy: BYD posts record sales in UK in July 2025
- TechCrunch: Tesla sales drop in UK in July 2025
- The Driven: PHEVs see strong growth in UK in July 2025
- Electrek: Tesla sales drop in Germany in July 2025
- CleanTechnica: Record 864,000 electric cars produced in Germany in H1 2025
- Electrive: EU BEV sales growth driven by Germany
- The Driven: EU BEV sales growth driven by Germany
- Bloomberg: EU BEV sales growth driven by Germany
- SMMT: Electric car market share in UK grows in July 2025
- Electrek: EU BEV sales growth driven by Germany
- CleanTechnica: EU BEV sales growth driven by Germany
- Renew Economy: EU BEV sales growth driven by Germany
- The Driven: EU BEV sales growth driven by Germany
- Bloomberg: EU BEV sales growth driven by Germany
- CleanTechnica: EU BEV sales growth driven by Germany
- Renew Economy: EU BEV sales growth driven by Germany
- The Driven: EU BEV sales growth driven by Germany
- Bloomberg: EU BEV sales growth driven by Germany
- In the realm of business and finance, the automobile sector shows an interesting dichotomy, with Germany leading the way in electric-vehicle (EV) adoption, while the UK market remains in a sluggish growth phase.
- The rapid expansion of electric-vehicle markets, particularly in Germany, points towards significant shifts in lifestyle and technology preferences, as cleaner and more efficient modes of transportation gain momentum.
- As governments and industries explore new funding opportunities for electric-vehicles, such as subsidies and tax incentives, the fluctuation in car sales between countries like the UK and Germany could be influenced by a mix of economic factors, consumer demands, and cutting-edge technology advancements.
