In This Story
According to automotive business intelligence firm, JATO Dynamics, Chinese EV maker BYD (BYDDY-1.47%) has now overtaken Tesla’s (TSLA-3.33%) dominance in Europe.
Tesla sold 7,165 battery-powered electric vehicles in Europe last month, while BYD doubled its share, clocking in at 7,231 units. The data also showed EV sales holding up well against a sagging overall auto market in Europe.
“While the electric vehicle segment was a bright spot for Europe’s new passenger car market last month, these gains were offset by significant declines among ICE vehicles. EV sales need to grow much faster to have a genuine impact on the wider European car market,” said Felipe Munoz, Global Analyst at JATO Dynamics.
Munoz said that even though BYD’s and Tesla’s numbers were close, the implications are still “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,” he noted.
Alex Black, chief marketing officer at automotive data company EpicVIN told Quartz that these numbers put Tesla on notice.
“After years without competition, consumers now have viable alternatives at a good price point. BYD is doing a really good job of selling affordable cars and, certainly, Europe is staring right into a high cost of living — so value has to matter,” Black said, adding that he was a little surprised at the numbers.
“BYD has been building for a bit. This is not one of those last-minute flash-in-the-pan warning signs that they are competitive here. Tesla’s going to need a very good offensive play or they are going to keep losing share,:
Jason Castriota, an automotive design and brand strategist, said that BYD has finally given Tesla customers a compelling alternative.
“The recent numbers underscore that their broader model lineup is well suited for the more cash-conscious European buyer,” according to Castriota, but he doesn’t expect Tesla to go quietly into the night.
“It will be interesting to see what levers Tesla pulls to regain its leadership position.”
Europe isn’t the only place Tesla has work to do with customers. According to a recent Axios Harris poll of corporate favorability ratings , Tesla was in 8th place in the 2021 reputation ranking of America’s 100 most visible companies, but fell in 2024 to 63rd and is now near the very bottom at 95th.