Chinese electric vehicle manufacturer BYD has surpassed Tesla in European sales for the first time, registering 7,231 fully electric vehicles in Europe last month compared to Tesla’s 7,165 registrations. This significant shift in market leadership comes as BYD continues to gain momentum across European countries while Tesla faces challenges in maintaining its previously dominant position.
BYD’s monthly registrations jumped by an impressive 169% year-on-year, while Tesla experienced a significant 49% decline during the same period. The Chinese brand also saw substantial growth when including plug-in hybrid vehicles, with registrations soaring by 359% compared to the previous year. This dramatic change in market dynamics reflects the growing strength of Chinese manufacturers in the European automotive landscape.
Felipe Munoz, a global analyst at Jato Dynamics, described BYD’s move as ‘a watershed moment for Europe’s car market, particularly considering Tesla has led the European battery electric vehicle market for years.’ Several European manufacturers, including Renault, Škoda, Volkswagen, Audi, and BMW, outperformed Tesla in pure electric car sales for April.
BYD has launched eight electric models across more than 30 European countries in recent years, including the compact Seagull hatchback priced as low as €22,990 (£19,330). Jolin Zhang, deputy managing director of BYD Europe, stated at the FT’s Future of the Car summit that the company aims to make its high technology and innovation accessible to as many customers as possible worldwide.
The company plans to establish local production through plants in Hungary and Turkey to address EU tariffs. Tesla’s declining European sales occur despite a recent upgrade of its flagship Model Y car. The American car manufacturer has faced challenges due to an ageing product portfolio and backlash against Elon Musk’s involvement in regional politics. In response, Musk announced he would step back from his government role in the US to focus on running the company after its first-quarter profits fell to their lowest level since late 2020.
European manufacturers have been aggressively rolling out new battery-powered vehicles at more affordable prices, partly driven by the need to meet tougher emissions regulations in the EU that came into effect this year. BYD is currently the best-selling Chinese automotive manufacturer in the UK, offering models such as the electric Atto 2, Atto 3, Sealion 7, and Dolphin.
