Italy’s New Car Sales Drop 2.12% in 2025 as Chinese Automaker BYD Gains Market Share
Italy’s new car market saw a 2.12% decline in sales in 2025, totaling 1.53 million units, according to data released by the country’s Transport Ministry. Despite the overall downturn, Chinese automaker BYD experienced explosive growth, capturing significant market share in the Italian electric and hybrid vehicle segment.

BYD’s Rapid Growth in Italy

BYD has expanded its Italian retail network to over 100 outlets, selling both electric and hybrid models. The company recorded nearly 24,000 vehicle sales in 2025, a dramatic increase from fewer than 3,000 units in 2024.

In December alone, BYD sold 3,347 new cars, up 428% year-on-year, ahead of the launch of its Atto2 DMI plug-in model, which is expected to hit the market in the first quarter of 2026. The company noted strong orders for the new model, highlighting growing consumer demand for electric vehicles in Italy.

“Rapid growth in Europe has helped BYD surpass Tesla as the world’s top electric vehicle manufacturer for the first time on an annual basis,” analysts noted.

Tesla and Stellantis Performance

Tesla, which experienced an 8.6% global sales decline in 2025, also saw its Italian market share decrease. Overall Tesla EV sales in Italy fell 18% in 2025, despite a surge of 85% in December compared to the same month in 2024.

Market leader Stellantis (STLAM.MI), whose brands include Fiat, Alfa Romeo, Lancia, Jeep, Peugeot, and Opel, also faced a decline. Registrations dropped 5.54% in December, with the company’s market share shrinking to 21.5%, down from 23.8% in November.

Italy’s Auto Market Outlook

While Italy’s overall new car market contracted in 2025, the growth of Chinese EV brands like BYD underscores a shift in consumer preferences toward electric and hybrid vehicles. Analysts suggest that rising awareness of sustainable mobility and expanded EV infrastructure in Italy will continue to drive demand for electric vehicles in the coming years.

BYD’s success reflects broader trends in Europe, where Chinese EV manufacturers are increasingly challenging traditional automakers like Tesla and European incumbents.