BYD has been slowly becoming the new top seller everywhere, so is Tesla really out?
For the first time, Chinese automaker BYD has overtaken Tesla in EV sales in Europe, according to new data from market research firm JATO Dynamics. In April, BYD registered 7,231 BEVs across Europe, slightly ahead of Tesla’s 7,165 units. This marks a significant shift in the European EV landscape, where Tesla has long dominated.
“This is a watershed moment for Europe’s car market,” said Felipe Munoz, global analyst at JATO Dynamics. “Tesla has led the European BEV segment for years, while BYD only formally expanded beyond Norway and the Netherlands in late 2022.” BYD, which also manufactures plug-in hybrid vehicles, has quickly expanded its presence across the continent.
Moreover, EV demand in Europe continues to grow. BEV registrations rose 28 percent year-over-year in April, with much of the momentum driven by Chinese brands. Despite the European Union imposing tariffs on Chinese-made EVs, registrations of these vehicles surged by 59 percent compared to the same month last year.
In contrast, EV makers from Europe, Japan, South Korea and the U.S. collectively recorded a more modest 26 percent increase. Tesla, once a clear leader in the EV market, is facing multiple headwinds. The company reported its first annual delivery decline in 2023, and industry analysts predict another decrease in 2024 following a 13 percent drop in deliveries during the first quarter.
While CEO Elon Musk recently claimed that sales have stabilized and remain strong outside of Europe, the company’s position in key markets is also weakening. Musk’s political views have sparked backlash and protests in both the U.S. and Europe, negatively impacting Tesla’s brand and consumer demand.
On top of that, the company’s production was temporarily disrupted as it retooled factories to begin manufacturing an updated version of the Model Y crossover globally. These efforts caused delays in deliveries during the first quarter. Further affecting Tesla’s performance is the anticipation surrounding the new Model Y.
Many potential customers appear to be holding off on purchases, waiting for the more affordable versions of the redesigned model to become widely available. As Chinese EV manufacturers like BYD gain ground in Europe, Tesla faces increasing pressure to adapt to a fast-evolving and highly competitive electric vehicle market.
We got all this from Reuters and their full article is linked here. Thank you Reuters for the information and images.
