BYD's "counterattack"

Once upon a time, Tesla's dominance in the global market was unmatched. However, the latest data shows that BYD, the electric vehicle giant from China, has surpassed Tesla in the number of electric vehicles sold in Europe for the first time, surpassing the American brand that has long dominated the European electric vehicle market.

British consulting firm JATO Dynamics released data on May 22 that BYD's (BYD) pure electric vehicle (EV) sales in 28 European countries surpassed Tesla in the United States for the first time in April. Tesla's sales were sluggish as Tesla CEO Elon Musk's political remarks sparked a boycott, while BYD's sales increased sharply to 2.7 times that of April last year.

BYD's EV sales in Europe increased by 169% to 7,231 units in April, or 359% if plug-in hybrids (PHVs) are included. Tesla's sales, which focus on EVs, fell by 49% to 7,165 units, reversing the rankings of the two companies for the first time. BYD entered the top 10 sales in Europe for the first time. If plug-in hybrids are included in the statistics, BYD's sales advantage over Tesla is more obvious. According to Jato data, the Chinese automaker's total sales jumped 359%.

Comparison of sales in multiple countries in April 2025 (BYD & Tesla)

In the European market, where competition is fierce and car companies must compete, BYD has fought back and forth with Tesla with aggressive sales performance, and is also quietly rewriting the pattern of the European new energy vehicle market. Broken down into countries, in April 2025, BYD's sales in core European auto markets such as Spain, Italy, France, the United Kingdom and Germany have comprehensively surpassed Tesla, setting a new international milestone. From the perspective of 14 European countries as a whole, BYD has a sales performance of 11,123 units, significantly ahead of Tesla's 6,253 units.

Take the mainstream market as an example:

【Germany】

According to statistics from the German Road Traffic Authority KBA, the total number of newly registered electric vehicles in April increased by 53.5% year-on-year, and Tesla sold 885 vehicles in Germany in April, down 45.9% year-on-year. Chinese electric vehicle manufacturer BYD sold 1,566 units in April; since the beginning of this year, BYD's cumulative total sales have reached 2,792 units.

BYD's sales in Germany (Source: KBA)

[UK]

Chinese car brand BYD's market share in the UK continues to grow, with monthly sales increasing sixfold (654%) year-on-year to 2,511 units. Tesla, on the other hand, saw sales fall by 62% to 512 units.

BYD sales in the UK (Source: DFT)

【Italy】

In April, BYD became the No. 1 brand in Italy in terms of new energy vehicle sales, with a cumulative registration of 1,683 units, a market share of 11.5%, and Tesla sales of 446 units. From January to April 2025, BYD will have a cumulative transaction volume of 5,646 transactions, accounting for 10% of the market.

In April this year, Denza held a brand conference in Milan, Italy, marking the official entry of the Denza brand into Europe. At the press conference, the world's first flagship model with the Yi tripartite platform Denza Z9GT was unveiled, bringing iconic functions such as Yi tripartite parking, 180km/h high-speed tire puncture stability control, extreme steering, compass U-turn, and intelligent crab walking, surprising the guests and audience.

【France】

In 2024, the BYD brand won the "Best Emerging Foreign Brand" award from Auto Moto, a well-known French automotive media; BYD Seal won the "First Place in the Electric Vehicle Category" awarded by the AutoPlus Reader Award, a well-known French automotive magazine. In April 2025, BYD sold 2,064 units in France, compared with Tesla's sales of 863 units, maintaining its lead.

【Spain】

Tesla's new car sales in Spain in April fell 36% to 571 units compared to the same period in 2024, while BYD's sales increased to 1,545 units, according to Yiche data. Chinese automaker BYD's sales in Spain have increased by 644% year-to-date.

BYD's sales performance in the European market is not limited to the countries mentioned above; sales performance in countries such as Denmark is also remarkable. These are proof of the recognition of the BYD brand in the European market and the growing confidence of consumers in the new energy solutions provided by the brand.

Meanwhile, Tesla is sluggish in the European market.

According to the data, in the first quarter, new car sales of American electric vehicle manufacturer Tesla in Europe fell by 45% year-on-year. In addition, according to recent reports from Statista and a number of media, Tesla's sales in the European market plummeted across the board in the first quarter of 2025. Major markets such as Germany, Denmark, and Sweden all fell by more than 50%, and the Dutch market was also close to halving. Specifically, Tesla registrations in Germany plummeted by 76% year-on-year to 1,429 units in March and 76% in February; Denmark's registrations in March fell 65.6% year-on-year to 593 units; Sweden's sales in March fell 63.9% year-on-year to 911 units. The French market is also not optimistic, with Tesla registering only 3,157 electric vehicles in March, down 36.8% year-on-year, and sales in the first quarter falling 41.1% year-on-year.

BYD completed a counterattack on Tesla in Europe, something that was unimaginable a year ago. In the most stubborn market in the world except the United States, BYD has touched the hearts of Europeans by relying on friendly prices and perfect configurations.

The logic behind it

BYD's sales surpassed Tesla because of its rational sales model + European consumers' antipathy towards Tesla.

The European electric vehicle market as a whole showed a growth trend, with pure electric vehicles and plug-in hybrids accounting for a record high of 26% of new car registrations in April, of which the proportion of pure electric vehicles rose to 17% from 13.4% in the same period last year, and plug-in hybrids rose from 6.9% to 9%. In addition to BYD, traditional car companies such as Volkswagen (up 61%), BMW (up 5%) and Audi (up 48%) also performed strongly, reflecting the continued heating up of electric vehicle demand. The heating up of the electric vehicle market has also contributed to BYD's success.

Compared with Tesla's "take-off from Silicon Valley", BYD's strategy is more like "ground propulsion": steady and steady. In the face of the extremely demanding European market, BYD did not blindly spread goods, but chose relatively mature and representative models such as Seal, Han and Tang, gradually tested user feedback, and then expanded the launch.

At the same time, it did not take the shortcut of "e-commerce direct sales", but invested real money to build local offline channels and service outlets. With a strong vertical supply chain and manufacturing efficiency, BYD's pricing does not rely on "fighting price wars", but on "rolling up value".

Especially in the range of 20-300,000 yuan, BYD's products in Europe seem to be particularly "capable": exterior design, interior texture, battery technology, space configuration, and cannot find many opponents at this price point. Due to the economic downturn in Europe, the continuous development of Chinese brand electric vehicles has also added more affordable competitive models to local consumers.

BYD's leap also reveals the reality of Tesla's weak growth in Europe to some extent.

First of all, the product line is slow to update, Model 3/Y has become an "old face", while Model 2/new platform has not been implemented; Then there is also the problem of experience homogenization. Minimalist interior + software experience is gradually losing its freshness in the minds of some consumers; there is also a change in the subsidy environment. Many countries have cut new energy subsidies, and Tesla's cost-effective advantage has been affected; and finally, the brand sense is gradually weakening. In Europe, environmental protection and manufacturing are "default requirements", and the aura of technology pioneers is no longer exclusive. In this regard, Tesla CEO Elon Musk admitted at the Qatar Economic Forum this week: "Europe is our weakest market. Market analysts believe that Musk's recent involvement in politics, right-wing tendencies and public support for Trump have aroused some consumer resentment, leading to protests in Tesla showrooms in the United States and Europe, further affecting sales.

To put it simply, Tesla is not "left behind", but its leading potential energy is being narrowed down, and the era of "lying down and winning" has passed.

For those who pay attention to the industrial chain, there is a more noteworthy point behind this news: the valuation logic is quietly changing. For a long time, Tesla has been given a very high valuation (60-100 times PE) by the market, citing technological positioning, growth space, and industry scarcity. Although BYD's sales have grown steadily, its valuation has hovered between 30-40 times all year round and is regarded as a "manufacturing company".

But now, BYD not only technically develops its own batteries, chips, and electric drives, but also gradually takes shape in brand building and globalization capabilities. This is no longer the traditional role of "OEM + export", but the prototype of brand-based global car companies. Once the market accepts the positioning of "global competitor", its valuation logic may no longer be simply "how much money is made per car sold", but "where will the global market share go in the future".

The trend of going overseas

The EU will impose tariffs of up to 45.3% on Chinese electric vehicles imported into the region from October 2024, on top of the original tax rate of 10%. However, the effect of the tariffs was limited, and Chinese car companies' electric vehicle sales still increased by 59% to 15,300 units.

According to preliminary data released by market analysis agency Dataforce, in the first quarter of 2025, China's car sales in the European market reached 148,000 units, a year-on-year increase of 78%, and its market share jumped to 4.5% from 2.5% in the same period last year. Among them, the sales of plug-in hybrid models surged by 368% year-on-year, becoming the core engine driving growth.

There are many reasons why Chinese car companies have counterattacked in Europe. First of all, in the face of the EU's high countervailing duties on China's pure electric vehicles, Chinese car companies quickly adjusted their product structure and took plug-in hybrid models as a breakthrough, which are still subject to a 10% basic tariff in Europe and are regarded as an alternative to fuel vehicles, filling the market demand for the transformation of the European automobile industry but pure electric has not yet been fully popularized. Taking BYD as an example, its products have become the first choice for European home users due to their high safety, long battery life and intelligent configuration. In addition, BYD's high-end brand Denza held a brand launch conference in Milan, Italy, showing innovative features and attracting great attention from European media and consumers. Secondly, some Chinese car companies have invested in local production by investing in factories in Europe, reducing tariff risks and enhancing brand recognition. For example, BYD is building a new energy passenger car production base in Hungary, and Chery is investing in a factory in Spain. In addition, mainstream European car companies have less layout in the field of plug-in hybrids, freeing up a certain market space for Chinese brands.

Chinese tram sales in Europe

However, BYD's overtaking does not mean that it has won steadily. On the contrary, there are two key variables in this global battle for new energy vehicles:

European policy risks intensify

The EU is investigating whether Chinese electric vehicles are suspected of government-subsidized dumping. The future does not rule out: increasing import tariffs; requiring more localized production; setting standard thresholds such as carbon footprint and traceable manufacturing.

These will directly affect the cost structure and market expansion pace of Chinese car companies.

Traditional European car companies are about to fight back

Giants such as Volkswagen, Renault, and Stellantis are still accelerating their electric transformation: the new Volkswagen ID series platform will be launched in 2026; Renault spun off Ampere to specialize in electric vehicles; Stellantis plans to launch a number of electric models under 50,000 euros in Europe. If they complete their organizational transformation and begin to "sink prices", Chinese car companies will face a real local counterattack.

BYD surpassed Tesla in Europe this time, not relying on low prices and subsidies, but on the comprehensive ability of product definition, brand production and rhythm. This marks that China's new energy vehicles are no longer just "involution exports", but compete head-on in the global core market. The critical moment for Chinese cars to go overseas in Europe has just begun.