China’s BYD models have overtaken Tesla in Europe for the first time.
Latest registration figures show BYD registered 7,231 BEVs in April, ahead of Tesla’s 7,165 units.
Other Chinese car brands coming into Europe and the UK will exacerbate the situation.
Tesla saw a 49% decline in BEV sales in Europe during April, while BYD’s sales surged by 169%.
Despite this setback, Tesla shares rose nearly 2%, reflecting investor confidence continues while critics believe Elon Musk should refocus his attention on his car business and not ignore it for his space crafts and appointment by US President Donald Trump.
JATO Dynamics global analyst Felipe Munoz is reported to have said, “Although the difference between the two brands’ monthly sales totals may be small, the implications are enormous. This is a watershed moment for Europe’s car market, particularly when you consider that Tesla has led the European BEV market for years, while BYD only officially began operations beyond Norway and the Netherlands in late 2022.”
Tesla’s challenges in Europe are evident, with registrations falling in countries like France (59%), Denmark (67%), Sweden (81%), the UK (62%), and Germany (46%).
The EU imposes a 10% tariff on BYD vehicles, with an additional 17% for BEVs. However, BYD’s success is not isolated. Legacy automakers Volkswagen, BMW, and Audi are also experiencing growth in BEV sales, with increases of 61%, 5%, and 48%, respectively.
Munoz added, “While the electric vehicle segment was a bright spot for Europe’s new passenger car market last month, these gains were offset by significant declines among ICE vehicles.”
JATO reported that BEVs and plug-in hybrid electric vehicles (PHEVs) accounted for 26% of new car registrations in Europe, setting a new record.
BEVs made up 17% of this total, while PHEVs represented 9%.
BYD plans to expand further by building a factory in Hungary and introducing its bestselling EV, the Dolphin Surf, to Europe, priced around equivalent of £19,250.
