BYD’s sales in Europe tripled in August compared to August 2024, surpassing Tesla for the second consecutive month, according to data from the European automotive industry association ACEA.
And they did so in a booming market. Sales in the European Union, the United Kingdom, and the European Free Trade Association (EFTA) increased 4.7% in August to 800,000 units, according to ACEA.
Need to sell and avoid tariffs favors PHEVs
Tesla’s sales in the EU fell by 36.6%, reducing its market share to 1.2% compared to 2% a year earlier. By contrast, BYD saw its sales soar by 201.3%, allowing it to capture 1.3% of the market.
The key lies in plug-in hybrids (PHEVs). While registrations of fully electric vehicles increased by 30.2%, those of PHEVs increased by 14.1%, with the latter reaching a share of 8.4% in the first six months of the year. Together, these two categories now represent 23.8% of EU registrations. Almost one in four cars is a plug-in.
Tesla, with an already familiar range despite its recent updates, remains a manufacturer exclusively of electric cars, while BYD has made a strong commitment to plug-in hybrids. Its BYD Seal U DM-i is one of the best-selling PHEVs on the continent and plans to add more plug-in hybrids to its range, starting with the BYD Seal 6 DM-i.
The European automotive industry is weakened by US tariffs, falling sales in China (German brands are highly dependent on China), Chinese competition in Europe, and the difficulties in cost-effectively complying with emissions regulations.
In this context, all manufacturers, especially the Chinese, have accelerated the commercialization of PHEVs to comply with emissions standards, offering more affordable and profitable models than 100% electric vehicles.
Furthermore, Chinese brands have also adopted this technology to limit the impact of EU tariffs on Chinese-made electric vehicles (PHEVs are subject to a tariff of only 10%), while appealing to European motorists who remain skeptical of Chinese models.
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