BYD Surpasses Tesla in European EV Sales for First Time – Is the Throne Shifting?

TradingKey - On May 22, UK consulting firm JATO Dynamics released data showing that in April, BYD’s pure electric vehicle (EV) sales in 28 European countries exceeded those of U.S. rival Tesla for the first time. Tesla’s sales have been sluggish due to a boycott campaign sparked by CEO Elon Musk’s political remarks, while BYD’s sales surged to 2.7 times the level of April last year.  

In April, BYD’s EV sales in Europe grew 169% year-on-year to 7,231 units. Including plug-in hybrid vehicles (PHEVs), sales jumped 359%. Meanwhile, Tesla, which focuses solely on EVs, saw a 49% decline in sales to 7,165 units, marking the first time the two companies’ rankings have reversed. BYD is expected to break into Europe’s top 10 EV sellers for the first time in the second quarter.  

BYD is ramping up its European expansion with plans to build an EV assembly plant in Hungary and has deployed its own dedicated large-scale EV transport ships to enhance supply capacity. These moves are set to further strengthen its competitiveness in the region.  

Starting in October 2024, the EU will impose additional tariffs on Chinese-made EVs, raising the total duty from the current 10% to as high as 45.3%. However, the impact appears limited so far, as Chinese automakers still saw a 59% year-on-year increase in EV sales in Europe in April, reaching 15,300 units.  

BYD's Hong Kong-listed shares peaked at a 4.74% intraday gain before paring some of those gains by the close.

[BYD intraday chart, source: Mitrade]  

Recently, the market is closely watching potential policy developments. European Commission spokesperson Rovšeks recently stated that the EU and China have agreed to explore setting a minimum price for Chinese-made EVs as an alternative to the planned 2024 tariff hikes. The timing of this policy’s implementation remains a key focus.