Chinese automaker BYD has overtaken Tesla as Europe’s best-selling electric vehicle (EV) brand for the first time, marking a pivotal shift in the region’s highly competitive EV market.
In April, BYD registered 7,231 battery electric vehicles (BEVs) across Europe, narrowly surpassing Tesla’s 7,165 units, according to market research firm JATO Dynamics. The report highlights growing consumer appetite for Chinese EVs, even as the European Union imposes steep tariffs on imports from China.
“This is a watershed moment for Europe’s car market,” said Felipe Munoz, global analyst at JATO Dynamics. “Tesla has long dominated the EV space, but BYD’s quick rise, despite only launching operations outside Norway and the Netherlands in late 2022, shows how fast market dynamics are changing.”
Chinese EVs surge despite tariffs
The broader European EV market is growing steadily. BEV registrations rose by 28% in April compared to the same period last year, with Chinese automakers leading the charge. Registrations of Chinese-made EVs jumped 59%, outperforming rivals from Europe, Japan, South Korea, and the U.S., which saw a collective 26% increase.
BYD, known for its growing lineup of affordable electric and plug-in hybrid models, has capitalized on price-conscious consumers looking for reliable alternatives amid rising inflation. Vehicles like the Dolphin Surf, launched at a showcase in Berlin, have resonated with buyers seeking budget-friendly options with premium features.
Tesla faces a cooling market in Europe
Tesla, in contrast, is facing headwinds in one of its historically strong markets. The U.S. automaker experienced a 13% decline in global sales during the first quarter of 2025, following its first annual delivery drop last year. Analysts expect further declines unless demand rebounds.
Production delays related to factory retooling for the updated Model Y, Tesla’s best-selling model, have also hurt output. Additionally, customer anticipation for cheaper versions of the new Model Y has led many to postpone purchases.
Tesla CEO Elon Musk’s polarizing political commentary has added fuel to the fire. His public stances have sparked protests in Europe and the U.S., damaging brand perception and consumer trust.
Despite the challenges, Musk insisted earlier this week that sales have stabilized outside Europe. “We’ve seen strong demand in other regions,” he said, without providing specific figures.
Still, industry watchers believe that unless Tesla adjusts pricing and rebuilds goodwill in Europe, BYD and other Chinese rivals could extend their lead in the coming months.
Read more on Tesla’s share of California EV market falls below 50% for the first time in years
