BYD increases its Europe market share by 158% while Tesla goes in the other direction
Published on Aug 23, 2025 at 4:01 AM (UTC+4)
by Jason Fan
Last updated on Aug 21, 2025 at 3:12 PM (UTC+4)
Edited by
Emma Matthews
Chinese automaker BYD is making big waves in Europe, posting a 158 percent jump in market share in May 2025 2025, while Tesla sales plunged by a third.
The numbers highlight a dramatic shift in Europe’s EV market, as Chinese automakers continue to eat into the share once dominated by Western brands.
However, despite its surge, there is perhaps no need for European carmakers to panic just yet.
After all, the Chinese carmaker still lags far behind giants like Volkswagen Group, which remains the undisputed EV leader in Europe.
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BYD is winning hearts with its affordability
Several factors explain BYD’s meteoric rise.
The company offers a wide lineup of vehicles and backs it with aggressive pricing, which resonates with cost-conscious European buyers.
For example, BYD’s cheapest EV, which sells for only $10,000, is launching in Europe. That’s a lot of car for your dollar.
Despite EU tariffs on Chinese-made EVs, BYD’s value proposition has endured, buoyed by its expanding dealer network.
The Chinese carmaker is aiming for over 1,000 sales points by end-2025, and plans to localize production through its Hungary plant.
Additionally, BYD’s integration of advanced battery technologies further enhances appeal by emphasizing safety, range, and durability.
Volkswagen is king in Europe
Meanwhile, Tesla is mired in a slump.
Declining sales in Europe, which are down as much as 49 percent in April, have coincided with growing brand fatigue.
In Europe, people just aren’t very interested in Teslas anymore, and the carmaker has already quietly removed the Model S and X from its European lineup.
While Tesla continues to offer premium technology, its relatively narrow model range and pricing have become less competitive amid wider EV market growth.
Despite BYD’s impressive gains, legacy European brands, most notably Volkswagen and its affiliated brands, remain dominant EV players in Europe.
Volkswagen recently sold 1.5 million units of its fully-electric ID vehicles, which is a pretty mammoth task.
In fact, Volkswagen has recently taken the top spot in Europe EV sales for 2025, outpacing Tesla sales.
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Jason Fan is an experienced content creator who graduated from Nanyang Technological University in Singapore with a degree in communications. He then relocated to Australia during a millennial mid-life crisis. A fan of luxury travel and high-performance machines, he politely thanks chatbots just in case the AI apocalypse ever arrives. Jason covers a wide variety of topics, with a special focus on technology, planes and luxury.
