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BYD Surpasses Tesla in European EV Sales, Marking a Shift in the Electric Vehicle Market
In a significant development for China’s expansion in the global electric vehicle (EV) sector, Chinese automaker BYD has, for the first time, outsold Tesla in Europe. This milestone underscores the growing competitiveness of Chinese EV manufacturers in a market previously dominated by Tesla.
According to the latest market analysis from JATO Dynamics, BYD, known as Build Your Dreams, delivered 7,231 battery-powered electric vehicles in Europe last month. This figure narrowly surpasses Tesla’s 7,165 registered vehicles.
While the sales differential appears marginal, JATO Dynamics has described it as a pivotal moment, indicating that Elon Musk’s once-dominant brand is now facing stiff competition from a Chinese automaker that entered the European market just three years ago.
Between April 2024 and April 2025, BYD experienced a remarkable 169% surge in Battery Electric Vehicle (BEV) sales, contrasting sharply with Tesla’s 49% decline. This shift propelled BYD into the top 10 EV brands, while Tesla slipped to 11th place. This achievement is notable considering BYD is navigating the EU’s strict tariffs on Chinese-made electric vehicles.
BYD’s Rise Amidst Market Dynamics
Despite its lead in EV sales, BYD did not secure a spot among the top ten registered car manufacturers overall for the month. However, SAIC, another Chinese automotive company and owner of MG, achieved tenth position.
Individually, no BYD model ranked within the top 25 best-selling models, whereas Tesla’s Model 3 secured 24th place.
The bestselling individual electric car model in Europe last month was Skoda’s Elroq, followed by the VW iD3 and iD7 in second and third positions, respectively.
Tesla’s Sales Decline and Contributing Factors
Tesla’s sales downturn runs counter to the overall growth trend in Europe’s EV segment, where registrations have increased by 28% across the board.
The sales slump has been partially credited to the Model Y undergoing a refresh earlier this year. The Model Y was globally the top-selling car in 2023.
Schmidt Automotive Research suggests that controversy surrounding CEO Elon Musk’s political alignment has also influenced Tesla’s sales figures.
In the JATO May report, Felipe Munoz, Global Analyst at JATO Dynamics, stated: “Although the difference between the two brands’ monthly sales totals may be small, the implications are enormous.”
“This is a watershed moment for Europe’s car market, particularly when you consider that 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 total sales increased 359% in April from a year earlier when plug-in hybrids are factored in.
EU Tariffs and BYD’s Strategic Shift
Since the EU imposed high tariffs of up to 35% on Chinese-made EVs last year, Chinese car manufacturers like BYD have been compelled to adapt their strategies.
Instead of exclusively focusing on zero-emission models, BYD has started promoting plug-in hybrids as part of a ‘two-pillar’ strategy to mitigate the impact of the EU’s measures.
Despite these tariffs, registrations of Chinese EVs increased by 59% in April 2025 compared to April 2024.
European, Japanese, South Korean, and American EVs recorded 26% growth.
Tesla’s Response and Future Outlook in the Electric Vehicle Market
Musk asserted earlier this week that Tesla has observed a “major rebound in demand” after a typical period of low demand. Tesla used this lull to temporarily cease production at facilities globally to “retool” for the “new version of the Model Y that came out.”
Despite this, an official Tesla UK update for April attributed sales issues to ramping up new Model Y production in the UK.
The UK’s SMMT data predominantly reported Model 3 deliveries, as the old Model Y is sold out which would mean low registration figures. It’s also down to the fact that Tesla does not pre-register cars, resulting in a lag in sales, the update says.
BYD Models Available in the UK
BYD entered the UK market in 2023, introducing three models: the Atto 3, the Dolphin, and the Seal, priced at £37,705, £26,205, and £45,705, respectively. These models are designed to offer superior quality, advanced technology, and enhanced battery capabilities at a more accessible price point compared to European brands.
The upcoming Atto 2 compact SUV is slated for release later this year, with an expected starting price of £30,000.
BYD has announced that its Dolphin Surf city EV will launch later this year, aiming to deliver “the best value” in its category with a price tag under £20,000.
As of March, BYD has established 60 dealer locations, with plans for further expansion.
The Updated Tesla Model Y: Key Features
The 2025 Tesla Model Y redesign marks the first major update in the five years since its initial release.
- Key exterior enhancements include new lightbars at the front and rear, a sleeker silhouette, and an extended body.
- Technological upgrades encompass a touch infotainment screen in the rear, Bluetooth and Wi-Fi connectivity, and practical exterior features such as a self-washing camera.
The base-level Rear-Wheel Drive New Model Y is priced at £44,990 and offers a range of 311 miles on a single charge. The Long Range RWD variant costs £48,990 with a range of 387 miles, while the Long Range AWD is priced at £51,990 with a range of 364 miles.
The Launch Series Long Range All-Wheel Drive model provides a range of 353 miles and is priced at £60,990.