For the first time ever, Chinese electric vehicle (EV) maker BYD has outsold Tesla in battery electric vehicle (BEV) sales across Europe, despite facing higher import tariffs. According to new car registration data from automotive research firm JATO Dynamics, BYD’s European sales surged by 359% in April compared to the previous year, while Tesla’s sales fell by 49%.
This moment is being described as a “watershed moment” in the European car market—marking a dramatic shift in the growing rivalry of BYD vs Tesla in Europe.
Tariffs Fail to Slow BYD’s Rise
Despite the European Union (EU) imposing additional tariffs on Chinese-made EVs last year, BYD’s performance continues to soar. The EU claimed these tariffs—up to 35% for some automakers—were introduced to counter unfair trade practices. BYD faced a 17% duty, more than double the 7.8% tariff on Tesla’s made-in-China vehicles.
Yet, this didn’t slow BYD’s growth. Experts suggest that the brand’s expanding model range and pricing strategy have helped it overcome this barrier.
Tesla Faces Headwinds in Europe
While BYD is growing, Tesla is facing challenges. April marked another decline for the U.S. automaker, with European sales dropping nearly half from the same time last year. The fall comes after protests and public criticism of CEO Elon Musk, particularly tied to his political affiliations and public behavior. Tesla’s stock has also dropped more than 10% in recent months.
This drop in momentum adds complexity to the ongoing BYD vs Tesla in Europe debate.
European Market: A New Battlefield
The growing presence of BYD highlights how Europe is becoming the new battleground for global EV makers. Industry expert Liz Lee of Counterpoint Research notes that Europe is now a more critical growth market than even China, which already has high EV adoption.
BYD’s strategy includes building its first European plant in Hungary, which will begin production soon. Meanwhile, Tesla is reportedly working to expand its manufacturing footprint in Germany.
Chinese EV Makers Gain Ground
BYD is not the only Chinese company making moves. JATO data shows that Chinese automakers’ EV sales rose by 59% in April year-over-year, reaching nearly 15,300 units. That includes not only BEVs but also plug-in hybrid electric vehicles (PHEVs)—a category where Chinese companies are strong global players.
JATO analyst Felipe Munoz added that BYD is now outselling traditional European brands like Fiat and Seat in key markets such as France.
Consumer Demand Remains Strong
Despite the geopolitical tensions and tariff battles, European demand for electric vehicles remains high. Registrations for battery EVs increased by 28% in April, while PHEVs grew by 31%, according to JATO. This growth comes as internal combustion engine vehicles continue to decline.
Even as tariffs affect margins, Chinese EV makers are adapting by diversifying their offerings and considering local production, making them harder to push out of the market.
BYD vs Tesla in Europe: What Comes Next?
While the sales difference between BYD and Tesla was relatively small in April, the symbolism is significant. Tesla, once the clear leader, is now being challenged head-on by a rising Chinese competitor with global ambitions.
Industry analysts suggest that unless Tesla addresses its falling European sales and reputation, BYD could continue to gain market share and influence. The BYD vs Tesla in Europe rivalry is just getting started, and the next few quarters will be crucial.
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