BYD Surpasses Tesla in European EV Sales for First Time

In April 2025, Chinese electric vehicle manufacturer BYD surpassed Tesla in battery-electric vehicle (BEV) sales across Europe for the first time, signaling a notable shift in the region’s EV market dynamics. According to data from JATO Dynamics, BYD registered 7,231 BEVs, narrowly edging out Tesla’s 7,165 units.

The European BEV market experienced a 28% year-over-year increase in registrations during April, with several automakers contributing to this growth. Volkswagen led the surge with a 61% rise in EV sales, while its subsidiary Skoda more than tripled its EV registrations. Other brands, including BMW, Renault, Audi, and Kia, also reported gains. In contrast, Tesla’s registrations declined by 49% compared to the same month in the previous year.

BYD’s Strategic Expansion

BYD’s ascent in the European market is attributed to its diversified product lineup and strategic response to regional trade policies. The company has expanded its offerings to include plug-in hybrids, which are not subject to the same European Union tariffs as BEVs imported from China. This approach has allowed BYD to mitigate the impact of a 17% tariff on its BEVs, compared to a 7.8% tariff on Tesla’s China-made vehicles.

In addition to product diversification, BYD is investing in local manufacturing to strengthen its presence in Europe. The company plans to open a new production facility in Szeged, Hungary, by late 2025. This plant will enable BYD to produce vehicles within the EU, thereby avoiding import tariffs and reducing delivery times to European customers.

Tesla’s Challenges in Europe

Tesla’s declining sales in Europe are influenced by several factors, including an aging model lineup and CEO Elon Musk’s political affiliations. Musk’s involvement with the Trump administration and his leadership role in the Department of Government Efficiency have drawn criticism in Europe, leading to protests and a decline in brand perception.

These controversies have had tangible impacts on Tesla’s business. For instance, Denmark’s largest construction company, Tscherning, returned its fleet of Tesla vehicles, citing concerns over Musk’s political activities. Additionally, Tesla’s sales have plummeted in key European markets, with April 2025 figures showing a 62% drop in the UK, 67% in Denmark, and 81% in Sweden.

Future Outlook

BYD’s momentum in Europe is expected to continue, bolstered by its local manufacturing initiatives and expanding product range. The company’s plans to establish a European headquarters and R&D center in Budapest further demonstrate its commitment to the region.

Meanwhile, Tesla is working to regain its footing by expanding its Berlin Gigafactory and introducing new models. However, the company’s ability to reverse its declining sales trend in Europe remains uncertain, particularly in light of ongoing brand perception challenges and increasing competition from both established and emerging automakers.