[Epoch Times May 24, 2025] Chinese electric vehicle manufacturer BYD surpassed its American competitor Tesla for the first time in the European market in April this year, becoming the best-selling pure electric vehicle (BEV) that month. Analysts believe that this event reveals not only changes in the market share of automobiles but also involves profound changes in global geopolitics, industrial policies, and the trade pattern between China and Europe.
According to data released by Jato Dynamics, BYD sold and registered a total of 7,231 pure electric vehicles in Europe in April (an increase of 169% year-on-year), slightly higher than Tesla’s 7,165 units during the same period.
Felipe Munoz, a global analyst at Jato, stated that although the monthly sales gap between the two brands is small, the impact is significant. In April, the overall registration of pure electric vehicles in Europe increased by 28%, while Chinese brands saw a growth rate of 59%, compared to the 26% growth of European, American, Japanese, and Korean manufacturers, highlighting the advantage of Chinese car companies.
Economic scholar David Huang, currently residing in the United States, told Epoch Times that BYD’s ability to surpass Tesla in a short period is not solely reliant on one popular vehicle model but is achieved through various strategic methods and geopolitical advantages in gaining origin certifications.
Reports indicate that BYD has already established factories in Eastern European countries such as Hungary and bypassed strict inspections on Chinese goods in Western Europe through cooperation with pro-China governments, achieving the so-called “origin whitening” strategy.
Huang mentioned that for countries like Hungary and Serbia, which have strong demands for economic revival, Chinese investment is seen as an economic lifeline, contrasting the traditional automotive powerhouses of France, Germany, and Italy, among others.
Additionally, BYD adopts a low-price strategy under the subsidies of the Chinese government, aiming to rapidly capture market share even at the expense of profits. Simultaneously, the company shifts the pollution and recycling risks in the battery supply chain to China, allowing the European market to enjoy “green consumption” while indirectly transferring the environmental costs to China.
This strategy not only reduces price barriers but also accelerates market penetration speeds.
In contrast, Tesla’s performance in the European market continues to decline. According to Jato data, Tesla’s registrations decreased by 49% in April, while Volkswagen saw a 61% year-on-year growth, with its subsidiary Skoda doubling its sales.
Analyst Munoz mentioned that Tesla’s weakening performance is closely related to CEO Elon Musk’s political stance, aligning closely with right-wing forces, gradually distancing itself from European consumers.
Observers point out that Europeans’ attitudes towards Musk are cooling, coupled with the fact that the United States has shifted from the electric vehicle subsidies during the Biden era to supporting the traditional automobile industry, weakening the institutional support that Tesla relied on previously.
David Huang stated that this has led to a divergence in American and European policies: the United States turning back to embrace combustion engine vehicles while Europe remains committed to carbon neutrality policies, gradually decoupling the market support for electric vehicles in the two regions.
Despite BYD’s achievements in Europe, risks continue to accumulate. In October 2024, the European Union announced punitive tariffs of up to 35% on Chinese electric vehicles to address the unfair subsidies provided by the Chinese government to the industry.
According to Reuters’ analysis, the EU perceives China as a potential partner on certain issues but also as a competitor and systemic adversary.
The Commission pointed out that China’s annual excess capacity of up to three million electric vehicles, which heavily relies on exports, is double the size of the EU market. With a backdrop of 100% high tariffs in the United States and Canada, Europe could potentially become the most direct dumping ground for Chinese car manufacturers.
In addition, the German newspaper “Handelsblatt” revealed in April this year that negotiations between the EU and China are ongoing to set a minimum selling price for Chinese electric vehicles in the EU but have not reached an agreement yet.
Huang warned that BYD’s current success is built on internal divisions within the EU – Eastern Europe welcomes Chinese investment while Western Europe worries about the industry threats it poses. If the political landscape in Europe tilts to the right or forms a consensus on trade defense, BYD may face serious challenges.
Regarding whether BYD constitutes “Chinese dumping,” Professor Xie Tian from the University of South Carolina’s Ayvens Business School stated to Epoch Times that most of BYD’s sales come from assembly plants in Europe, and its registration figures partly come from rental companies, not actual consumer market sales, hence not entirely reflected in export statistics.
In fact, BYD signed a memorandum of cooperation with the European car rental giant Ayvens in July last year, attempting to penetrate the European corporate market through this partnership. BYD plans to double its overseas sales to 800,000 vehicles by 2025, and establish factories in Brazil, Hungary, Thailand, Turkey, among other locations, to alleviate tariff pressures and consolidate its overseas market base. A spokesperson for BYD stated at the end of March this year that they will continue to maintain cost competitiveness through a mixed model of local assembly and collaboration with Chinese supply chains.
From a macro perspective, BYD’s overseas expansion is seen as an emergent export under the overcapacity background of the Chinese electric vehicle industry, with long-term effects that are difficult to predict.
Huang believes that the key for BYD to establish itself in Europe lies in whether they can transform their subsidy advantage into competitive strength compliant with regulations. He emphasized, “This victory is just a short-term dividend, not a true final victory.”
Dr. Wang Xiuwen from the Taiwan Institute for National Defense and Security Studies also pointed out that BYD’s success is still a temporary phenomenon. Looking at the data, other brands in April such as Ford, Skoda, and Chinese Xiaopeng even surpassed BYD in growth rates, indicating a highly competitive landscape in the European market.
She cautioned, “Relying on just one month’s data is not enough to draw conclusions. We still need to observe whether a stable trend will form.”
BYD’s monthly sales exceeding Tesla in Europe, according to Dr. Wang Xiuwen, not only reflects sales figures but also signifies a multifaceted competition involving geopolitics, industrial policies, brand influence, and consumer preferences. This victory represents Chinese manufacturing accelerating its entry into global supply chains and market systems while revealing the struggle within Europe between environmental ideals and economic realities.
Professor Xie Tian warned that BYD’s strong sales in Europe are worth noting not only for the impact on the European market but also for the challenges it poses to European policies and industrial autonomy.
As attitudes toward China from Europe and America become increasingly tough, BYD will face challenges in policy headwinds, regulatory pressures, and the real market demands.