In a milestone for the global electric vehicle (EV) industry, China’s BYD has outsold Tesla in Europe for the first time, according to data released by automotive research firm JATO Dynamics.
The development marks a significant shift in the continent’s EV landscape as Chinese automakers continue their rapid international expansion.
In April, BYD registered 7,231 fully electric vehicles across 28 European countries, narrowly surpassing Tesla’s 7,165 registrations. While the margin was slim, analysts described it as a pivotal moment for the European auto market.
“This is a watershed moment,” said Felipe Munoz, global analyst at JATO Dynamics, highlighting how quickly BYD has grown since entering the European market more broadly in 2022.
BYD’s strong performance came despite existing European Union tariffs intended to shield domestic manufacturers from lower-cost Chinese imports. Even so, BYD’s battery electric sales grew by nearly 170% year-over-year in April. The company’s broader portfolio, including plug-in hybrid models, saw sales climb over 300%, outpacing many traditional European brands in several countries.
Tesla, meanwhile, saw its European sales decline sharply, falling 49% from the same month last year. This drop pushed the company to 11th in monthly EV sales rankings, a notable shift for a brand that has long dominated the segment. In the first quarter of 2025, Tesla had ranked second in electric vehicle sales behind Germany’s Volkswagen.
Tesla’s decline comes amid a broader reassessment by European consumers. Sales in key markets like Germany and the UK have fallen to their lowest levels in over two years. While Tesla was once the face of the EV revolution in Europe—first arriving in Norway in 2014 and opening its Berlin-area Gigafactory in 2022—the brand has recently faced challenges including increased competition, changing consumer preferences, and political controversies linked to CEO Elon Musk.
In contrast, BYD has been aggressively expanding its European footprint. The company is constructing production facilities in Hungary and Turkey, with the latter providing a strategic advantage due to its customs agreement with the EU that allows tariff-free exports. This week, BYD also announced its new European headquarters in Hungary, a move expected to create 2,000 jobs across various functions, including research and development.
Volkswagen remains Europe’s top EV seller, with over 23,500 new battery-electric registrations in April—an increase of roughly 60% from the previous year. Its Skoda brand also posted strong gains, tripling its EV sales compared to the same period in 2024.
While Tesla continues to hold a significant position in the global EV market, its recent decline in Europe signals intensifying competition. Analysts note that Chinese manufacturers like BYD are leveraging both price and rapid production scalability to gain ground, even in markets where regulatory barriers exist.
Bloomberg, the Financial Times, and the New York Times contributed to this report.
