Chinese-owned electric vehicle (EV) brands outpaced Tesla in Europe as battery electric vehicle (BEV) registrations surged by 25%, despite an overall 3% decline in passenger car sales. According to JATO Dynamics, 966,300 new cars were registered across 28 European markets in February, with Tesla’s sales plunging by 44% amid increased competition and a model changeover.
Tesla Faces Setback as BEV Market Grows
The European BEV market saw record-breaking February sales, with 164,000 units registered, a 26% increase from last year. However, Tesla’s market share plummeted to 9.6%, its lowest February figure in five years, with year-to-date market share dropping from 18.4% in 2024 to just 7.7%.
Tesla’s decline was largely attributed to the 56% drop in Model Y registrations, down to 8,800 units, as the company phases out the existing version ahead of a refreshed model launch. Meanwhile, Model 3 registrations fell by 14% to 6,800 units.
“Tesla is undergoing a period of immense change, facing increasing competition and a crucial model transition,” said Felipe Munoz, Global Analyst at JATO Dynamics. “These changes have impacted sales, but demand could recover once the updated Model Y is widely available.”
Chinese-Owned EV Brands Gain Momentum
Chinese automakers seized the opportunity created by Tesla’s decline. In February 2025, Chinese-owned brands registered 19,800 new EVs, surpassing Tesla’s 15,700 units.
The best-performing Chinese-owned brands were:
✔ Volvo (despite a 30% drop in BEV sales)
✔ BYD, which saw a 94% surge in registrations
✔ Polestar, up 84%
✔ Xpeng, surpassing 1,000 units
✔ Leapmotor, nearing 900 units
Renault Group Leads the Market
Despite market challenges, Renault Group emerged as February’s top performer, with a 12% increase in sales and a 1.5% market share gain. The success was driven by the strong performance of the Renault Clio, Dacia Duster, Renault Symbioz, and the new Renault 5.
In the BEV segment, Renault’s sales soared by 96% to 9,400 units, making it the second-largest BEV player after Volkswagen, which posted a 108% increase. Other automakers seeing major BEV gains included:
✔ Citroën (+190%)
✔ Cupra (+179%)
✔ Mini (+804%)
✔ Ford (+146%)
In contrast, Tesla, Volvo, MG, Fiat, Jeep, and Smart recorded declines.
Volkswagen Maintains Market Lead
Volkswagen Group remained the top-selling carmaker in Europe, commanding 25.8% market share. Stellantis ranked second but lost 2.6 points due to double-digit declines in Citroën, Opel/Vauxhall, and Fiat sales.
Dacia Sandero Tops Model Rankings
For another month, the Dacia Sandero was Europe’s most registered new car, followed by the Citroën C3 and the Renault Clio, which saw a 22% sales increase. The Volkswagen Tiguan also surged by 43%, entering the top 10 at ninth place.
Outlook: Can Tesla Rebound?
With Tesla gearing up for the release of its refreshed Model Y, analysts will be watching closely to see whether sales rebound in the coming months. Meanwhile, Chinese automakers continue to make strong inroads into the European market, intensifying competition in the rapidly evolving EV landscape.
