Chinese carmaker BYD surpassed Tesla in battery electric vehicle (BEV) sales in Europe for the first time in April, signaling a major shift in the region’s electric vehicle market. BYD sold 7,231 BEVs across 28 European countries, marking a 169 per cent year-on-year increase, according to data from Jato Dynamics. Tesla, previously the market leader, recorded a 49 per cent drop in sales to 7,165 units.
Though the monthly gap between the two brands is modest, the implications are significant. Tesla has long dominated the European BEV market, while BYD only began expanding in earnest beyond Norway and the Netherlands in late 2022. This development highlights the rapid growth of Chinese automakers in Europe despite the imposition of steep EU tariffs on imported Chinese BEVs.
Battery electric vehicles accounted for 17 per cent of the 1.1 million new vehicles registered in Europe in April, up from 13.4 per cent a year earlier. Plug-in hybrids (PHEVs) made up 9 per cent, an increase from 6.9 per cent. Chinese manufacturers contributed heavily to this growth, with BEV sales rising 59 per cent year-on-year to nearly 15,300 units. In contrast, non-Chinese automakers saw a combined increase of 26 per cent.
Sales of Chinese PHEVs grew even more dramatically. Registrations surged 546 per cent to 9,649 units, representing nearly 10 per cent of the PHEV market in the EU. This increase came after the EU imposed tariffs of up to 45.3 per cent on Chinese-built BEVs in late 2024. In response, many Chinese carmakers shifted focus to PHEVs, which currently are not subject to the same duties.
BYD and Chery have rapidly expanded their presence in the PHEV segment, with BYD registering 3,269 units in March, up from virtually zero before the tariffs. Analysts suggest this pivot helps maintain momentum as Chinese brands continue global expansion despite regulatory challenges.
To further counter the impact of tariffs, Chinese automakers are accelerating plans to localize production. BYD’s first European factory in Hungary is set to begin operations in the second half of 2025. Additionally, the company plans to establish its European headquarters and a new research and development center in Hungary, underscoring its commitment to the region.
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