BYD Surpasses Tesla in European EV Sales as Hybrid Demand Surges

Chinese electric vehicle maker BYD has overtaken Tesla in European Union sales for the second consecutive month, according to the latest data from the European Automobile Manufacturers’ Association (ACEA). The Shenzhen-based automaker sold three times as many new cars in the EU in August compared to the same month in 2024, marking a sharp acceleration in market share as it continues to challenge established competitors.

Overall EU car sales, including Britain and the European Free Trade Association (EFTA), rose 4.7% to nearly 800,000 vehicles. Much of this growth was driven by the strong demand for plug-in hybrid (PHEV) and battery-electric vehicles (BEVs), both of which are becoming critical for automakers to meet stringent EU emissions standards. Registrations of BEVs grew by 30.2%, hybrids surged by 54.5%, and plug-in hybrids climbed 14.1%, collectively accounting for 62.2% of new car sales in the region, up from 52.8% a year earlier.

Tesla, once dominant in the European EV market, saw its sales slump 36.6% in August, reducing its market share to just 1.2%, down from 2% in 2024. In contrast, BYD’s registrations soared 201.3%, giving the company a 1.3% share and highlighting its rapid rise. Another Chinese automaker, SAIC Motor, the parent of MG, also posted strong gains, with sales up 59.4% and year-to-date market share reaching 1.9%, ranking it among the bloc’s top ten sellers.

European manufacturers showed mixed results. Volkswagen’s sales rose 4.8%, Renault gained 7.8%, and Stellantis, after more than a year of declines, returned to growth with a 2.2% increase. The resurgence in PHEV sales has been especially important for European automakers, offering a more profitable and regulation-compliant alternative to pure EVs, while Chinese brands have leveraged hybrids to reduce tariff exposure and appeal to skeptical European consumers.

The competition underscores the shifting dynamics of Europe’s auto industry, which faces mounting challenges from tariffs, regulatory pressures, and aggressive Chinese EV expansion.