BYD Extends Lead Over Tesla in Europe’s EV Market
Chinese EV giant BYD is tightening its grip on Europe’s electric car market, leaving Tesla trailing behind.
According to fresh data from the European Automobile Manufacturers Association (ACEA), BYD sold three times more new vehicles in the EU last month compared to August 2024—marking the second consecutive month it has outpaced Tesla.
Market Shifts
The broader European car market is finally regaining momentum, with sales rising after a slump of more than a year. Growth was fueled by strong demand for plug-in hybrids (PHEVs) as well as battery-electric vehicles (BEVs).
Stellantis, owner of brands like Peugeot and Fiat, also recorded its first sales increase in over a year, signaling a healthier market outlook.
Challenges for Europe
Europe’s automakers still face steep hurdles:
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Tariffs on U.S. imports
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Fierce price competition from China
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Tough EU regulations on emissions and EV adoption, while trying to stay profitable
To cope, carmakers are leaning heavily on plug-in hybrids, which are more profitable and affordable than pure EVs—helping them comply with emissions rules. Chinese brands like BYD are also leveraging this technology to soften the blow of EU tariffs on Chinese-made EVs.
Tesla Down, BYD Up
Tesla’s EU sales slumped 36.6% year-on-year, cutting its market share from 2% to 1.2%. Meanwhile, BYD’s sales skyrocketed 201.3%, pushing its market share up to 1.3%.
The shift highlights a changing landscape: Europe’s once Tesla-led EV market is fast becoming BYD territory.
