BYD overtakes Tesla in Europe EV sales for the first time
Tesla, once the dominant EV force in Europe, registered a steep decline of 49 per cent year-on-year. Though the margin between the two is narrow, analysts say the implications are far-reaching.
Chinese electric vehicle (EV) giant BYD has overtaken Tesla in battery-electric vehicle (BEV) sales in Europe for the first time, marking a key turning point in the region’s EV landscape, according to market researcher JATO Dynamics.
In April 2025, BYD registered 7,231 BEVs across 28 European countries, registering an increase of 169 per cent from the same month last year. Tesla, once the dominant EV force in Europe, registered 7,165 units, a steep decline of 49 per cent year-on-year. Though the margin between the two is narrow, analysts say the implications are far-reaching.
The development comes amid broader growth in Europe’s EV sector, with BEV registrations rising 28 per cent in April. Volkswagen led that surge with a 61 per cent jump in EV sales, while its Skoda brand more than tripled EV registrations. BMW, Renault, Audi, and Kia also posted gains. In contrast, aside from Tesla, Volvo and Mercedes recorded declining numbers.
BYD expands despite tariffs
BYD’s rapid rise in Europe has been bolstered by a strategic pivot toward plug-in hybrids in response to new European Union (EU) tariffs on China-made BEVs. Including plug-in hybrids, BYD's total registrations soared 359 per cent in April, positioning it ahead of legacy automakers like Fiat and Seat in markets such as France.
The tariffs—17 per cent for BYD compared to just 7.8 per cent for Tesla’s made-in-China cars—were intended to curb the influence of Chinese EV brands amid accusations of unfair trade practices. However, BYD has managed to offset the impact by diversifying its product lineup and offering competitive pricing. Hybrid vehicles, not subject to the same tariffs, have also proven key to this growth.
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Despite these trade hurdles, Chinese EV brands collectively saw a 59 per cent increase in European registrations in April. Tesla, on the other hand, continued its downward trend. In the first quarter of 2025, Tesla posted a 71 per cent drop in net income, and its sales have slumped each month this year—down 36 per cent in March, 47 per cent in February, and 50 per cent in January.
Observers cite multiple factors for Tesla’s struggles, including limited model updates and CEO Elon Musk’s controversial political affiliations. His close ties to the Trump administration and public controversies have drawn protests in Europe and alienated consumers in a region known for its progressive policies.
The road ahead
BYD’s momentum is expected to continue as it prepares to open a manufacturing plant in Hungary, its first in Europe. Meanwhile, Tesla is working to expand its Berlin gigafactory in a bid to recapture market share.
JATO Dynamics noted that although Tesla remains a significant global EV player, BYD’s expansion and local manufacturing plans put it in a strong position to challenge for dominance in key international markets.
With the European EV market heating up, industry watchers say this rivalry is only just beginning—and it’s no longer guaranteed that Tesla will lead the charge.
(With inputs from agencies)