BYD has overtaken Tesla in battery electric vehicle (BEV) sales in Europe for the first time, marking a major turning point in the continent’s electric vehicle market. The milestone is reached bilaterally. As the Chinese carmaker profits from a model offensive, Tesla is witnessing one of its weakest performances since entering the European marketplace.
In April, the Chinese automaker registered 7,231 BEVs across 28 European markets, a whopping 169% increase year over year. That achievement vaulted BYD into the top 10 EV brands on the continent, according to data from JATO Dynamics. Tesla, long the dominant player in the region, fell to 11th place with 7,165 units sold, down 49% from a year earlier. It’s worth noting that the comparison is BEVs only, as BYD also offers a popular PHEV model, the Seal U DM-i.
Narrow, but not the implications
While the gap in registrations is narrow, analysts say the implications are anything but. “This is a watershed moment for Europe’s car market,” said Felipe Munoz, Global Analyst at JATO. “Tesla has led the BEV segment in Europe for years, but BYD is now rewriting the rules of engagement, and doing so in record time.”
The overtaking manoeuvre comes as Europe’s broader EV market continues to grow. In April, battery electric and plug-in hybrid vehicles combined accounted for 26% of all new car registrations across the continent, a record high. BEVs alone made up 17% of the market, up from 13.4% a year earlier, while plug-in hybrids rose to 9%, up from 6.9%.
Tesla’s sharp decline was already acknowledged by CEO Elon Musk in an interview. He said that performance in Europe was “weak,” but only there. He soothed the situation by stating that registration was improving elsewhere in the world.
Skoda triples, but BYD disrupts
Tesla’s downfall contrasts with gains by major European players like Volkswagen, which posted a 61% increase in BEV sales last month. Skoda, a VW Group brand, more than tripled its EV volumes. But the real disruptor is BYD and none other, whose total sales surged 359% last month when including plug-in hybrids. That broader strategy is helping Chinese automakers not only weather but thrive under the pressure of new European Union tariffs.
Those tariffs targeting Chinese-made electric vehicles over unfair advantages from state subsidies don’t seem to hold BYD back. The brand quickly pivoted, ramping up plug-in hybrid offerings not yet subject to the new trade restrictions. The results have been striking: PHEV registrations from Chinese automakers soared 546% year-on-year in April, giving them nearly 10% of Europe’s total PHEV market.
Two-pillar strategy
BYD is now gaining ground with both pillars of its strategy—pure electric and hybrid. “In the near future, we’ll have two pillars,” said Maria Grazia Davino, BYD’s regional chief, at a recent industry event in Stuttgart. “One is electric.”
The company’s momentum is expected to accelerate with the European debut of the Dolphin Surf, a rebadged version of its Seagull hatchback, which launches this month in 15 countries. Priced at €19,990 in Germany and €21.290 in Belgium, the compact EV is one of the most affordable on the market and will compete directly with Renault’s R5 and Citroën’s ë-C3.
Tesla ramps up production
Despite the sharp decline in European sales, Tesla is ramping up production at its Gruenheide, Germany, plant to 5,000 Model Y units per week, with plans to double output and expand battery and logistics capacity. The factory, now Brandenburg’s largest employer, remains central to Tesla’s European strategy. BYD has announced plans to open new headquarters in Hungary as part of its expansion plans.
As BYD outpaces legacy brands like Fiat, Dacia, and Seat in several European markets and with Tesla facing declining volumes, the narrative in Europe’s EV race is rapidly changing. What was once a one-horse race is now a multi-front battle, and one BYD is eager to win.
