BYD Overtakes Tesla in Europe as EV Sales Surge

European electric vehicle (EV) sales are booming, but Tesla is losing ground. While overall new car sales remained relatively flat, battery electric vehicle (BEV) registrations jumped by 28%, and plug-in hybrid EV sales increased by 31%. Most automakers are benefiting from this surge, but Tesla is a notable exception.

Tesla’s European Dominance Fades

Once the leader in European EV sales, Tesla’s Model Y crossover is no longer the best-selling car in Europe. Registrations for the Model Y plummeted by 53% last month, landing it in 9th place among BEVs with only 4,495 units sold. The Skoda Elroq took the top spot, followed by VW’s ID.3, ID.7, ID.4, and the new Kia EV3.

BYD Surpasses Tesla in Key Market

Volkswagen leads overall EV sales in Europe, boasting a 61% increase to 23,514 units. Tesla, however, has fallen to 11th place with just 7,165 sales, a 49% year-over-year decrease.

Notably, China’s BYD has surpassed Tesla, securing 10th place. Despite facing trade barriers in the US, BYD has strategically focused on Europe. Its plug-in hybrid sales are strong, and its BEV sales have now overtaken Tesla with 7,231 registrations last month.

“This is a watershed moment for Europe’s car market,” notes Felipe Munoz, global analyst at JATO Dynamics. “Tesla has led the European BEV market for years, while BYD only officially began operations beyond Norway and the Netherlands in late 2022.”

BYD’s success highlights the increasingly competitive landscape of the European EV market, challenging Tesla’s previously uncontested dominance.