^{Photo: Global Times}

BYD Surpasses Tesla in European EV Market for First Time in Historic Turnaround

In a major shake-up of the European electric vehicle (EV) market, Chinese automaker BYD (Build Your Dreams) outsold Tesla in battery electric vehicles (BEVs) across 28 European countries in April 2025 — a development industry experts are calling a “watershed moment.”

According to new data from JATO Dynamics, BYD’s European sales surged 359% year-over-year last month, eclipsing Tesla for the first time since entering the market outside of Norway and the Netherlands just over two years ago.

Staggering Growth Despite Tariffs

This historic win for BYD comes despite the European Union’s punitive tariffs on Chinese EVs, introduced in October 2024. BYD’s vehicles currently face a 17% tariff, more than double the 7.8% duty levied on Tesla’s China-made cars. Some Chinese automakers are even subjected to tariffs as high as 35%, in addition to the EU’s standard 10% car import duty.

Still, BYD sold nearly 15,300 electric vehicles in April — a 59% increase year-over-year, making it the highest-performing Chinese EV brand in Europe that month. Tesla, by comparison, saw its European registrations drop by 49%, reflecting growing headwinds for the Elon Musk-led company in one of its key global markets.

Challenging Europe’s Legacy Carmakers

BYD’s impressive growth isn’t just affecting Tesla — the brand is also outpacing traditional European automakers. In France alone, BYD outsold legacy brands like Fiat and SEAT, demonstrating its fast-growing appeal to European consumers. The Chinese manufacturer’s lineup of competitively priced, technologically advanced electric cars is gaining traction even in traditionally loyal European auto markets.

Felipe Munoz, Global Automotive Analyst at JATO, emphasized the magnitude of this market shift:

“While the monthly margin between Tesla and BYD remains narrow, the implications are enormous. Tesla has long dominated the European BEV space, and now it’s clear that BYD is not just catching up — it's overtaking.”

Europe: The New Battleground for EV Giants

Industry experts now view Europe as the emerging front line in the EV war between BYD and Tesla. According to Liz Lee, Associate Director at Counterpoint Research,

“Europe is rapidly becoming the most competitive EV market globally. EV growth rates in the region are expected to surpass even China this year, where penetration is already high.”

BYD’s European push is expected to accelerate further once its new manufacturing plant in Hungary begins production. This facility is set to become the company’s European production hub, providing a local base that could eventually help minimize tariff exposure.

Tesla, meanwhile, is expanding its Gigafactory Berlin, signaling continued interest in the region, despite facing ongoing scrutiny related to Elon Musk’s political affiliations and management style.

Diversifying to Beat Tariffs

One major factor behind BYD’s resilience against EU tariffs is its diverse lineup of plug-in hybrids and fully electric vehicles. While tariffs currently target pure BEVs, plug-in hybrid vehicles (PHEVs) remain untouched. Chinese automakers, including BYD, are global leaders in both segments.

JATO’s report noted that while initial tariff announcements caused some disruption, BYD and other Chinese EV makers responded quickly by tweaking their offerings and expanding hybrid options across markets.

EV Market on the Rise, ICE Cars in Decline

Despite the turbulence, Europe’s EV segment continues to grow robustly. In April, battery electric vehicle registrations rose by 28%, and plug-in hybrids jumped 31%, according to JATO. In contrast, sales of internal combustion engine (ICE) vehicles declined, signaling a clear shift in consumer preference across the continent.

The EU’s protectionist stance — originally intended to limit Chinese EV influence — may have underestimated the agility of brands like BYD to adapt and thrive.

Market Sentiment and Stock Impact

Investors have responded strongly to BYD’s performance. The company’s Hong Kong-listed shares rose 3.9% on Friday and are up approximately 78% year-to-date, reflecting growing investor confidence in its international strategy.

Tesla, on the other hand, is experiencing a rough patch. The company’s stock is down more than 10% in 2025, amid production issues and public relations challenges tied to Elon Musk’s controversial support for the Trump administration. In an attempt to stabilize the company, Musk recently confirmed his commitment to remain CEO for at least five more years.

The Road Ahead

As Europe transforms into the hottest EV market globally, BYD’s meteoric rise is forcing incumbents — including Tesla and traditional European automakers — to re-evaluate their strategies.

With its Hungary plant on the horizon, a growing brand reputation, and a diversified portfolio tailored to weather tariff challenges, BYD is no longer just a rising star — it’s a major player in the future of European mobility.