Recently, the car sales data for May in many European countries were released, and the new energy vehicle market has changed significantly. BYD’s sales in many countries have surpassed Tesla, becoming the monthly sales champion of new energy vehicles.
At the same time, Europe has become the next main battlefield for Chinese auto brands to go overseas. Chinese auto companies are no longer limited to selling cars in Europe, but are also working hard to promote localization and open factories in Europe.
The breakthrough of Chinese cars in Europe indicates that Chinese cars are no longer limited to the cost-effective route, but can compete with international giants on the same stage with product strength. The global automotive industry has ushered in a new chapter in history.
1. BYD’s sales surpass Tesla, and Chinese cars have completed a counterattack in Europe
According to Yichebang data, in the 16 European countries, BYD’s total sales in May reached 12,363 vehicles, exceeding Tesla’s 12,264 vehicles in the same period, and the data confirmed the successful advancement of its global strategy.
BYD’s overtaking of Tesla is more obvious in the core national markets in Europe:
In the UK, BYD’s sales in May soared 408% compared with the same period last year, with monthly sales reaching 3,025 vehicles.
In Germany, BYD sold 1,857 vehicles in May, up 18.6% month-on-month and 824% year-on-year, surpassing Tesla for the second consecutive month.
In Italy, BYD sold nearly 2,000 vehicles (up 15.6% month-on-month), ahead of Tesla’s 850 vehicles.
In Spain, BYD sold 2,434 vehicles, while Tesla sold 794 vehicles, which is three times that of Tesla.
In France, BYD also surpassed Tesla, with sales of 938 vehicles, exceeding Tesla’s more than 700 vehicles.
Britain, France, Germany, Italy, and Spain are the five most important countries in Europe, accounting for more than 60% of Europe’s population and GDP, and 70% of Europe’s car sales. It can be said that taking over Britain, France, Germany, Italy, and Spain is equivalent to taking over the entire European market. In these five countries, BYD’s total sales reached 10,199 vehicles, exceeding Tesla by 6,619 vehicles.
Not only BYD, according to JATO data, in April this year, Chinese auto brands have occupied 4.9% of the EU new car market; a year ago, this figure was only 2.4%. The growth of Chinese cars in the European market mainly comes from new energy models. According to data from Schmidt Automotive Research, in the first quarter of this year, Chinese brands have a market share of 20% in the European electric vehicle market. If this growth rate is maintained, Chinese cars are expected to replicate the success of China in the European market.
2. It is not smooth sailing for Chinese cars to take over the European market.
Today, BYD has become the representative of Chinese car companies in the European market. But in fact, BYD is still a “newcomer” in the history of Chinese cars going overseas. BYD started its automotive business going overseas more than ten years ago, but it mainly focused on commercial vehicles such as buses and public transportation. The passenger car business did not start going overseas until 2021.
BYD’s journey to Europe is not smooth sailing: in 2021, BYD registered only more than 1,000 vehicles in the European market. The total sales volume in 2022 and 2023 is only over 20,000.
But in 2024, BYD ushered in a sales explosion, with annual sales reaching 58,000 vehicles. From January to April this year, BYD’s sales reached 54,000 vehicles, which is close to the total of last year. At this rate, BYD’s sales in Europe this year will exceed 100,000, and 150,000 sales will not be difficult. In the early days of entering the European market, BYD faced arduous challenges, among which the biggest problem was the development of dealer resources. For example, when BYD just entered the French market, it was almost unknown. BYD’s French sales director visited hundreds of stores in dozens of cities in France. Many car dealers refused to cooperate with BYD for reasons such as exclusivity. Some dealers even refused BYD for fear of destroying the century-old sign. BYD’s first store in France was not officially built until after the Paris Motor Show in October 2022. However, the dealers’ indifference to BYD in the early years was soon reversed-there is an innate complementarity and common interests between Chinese new energy vehicle companies and European dealers. Unlike China, there are a large number of “century-old stores” in European car dealers. Faced with the wave of new energy transformation, some dealers who are eager to change are powerless – the European new energy market is divided by Tesla and traditional European car companies. The former adopts a direct sales model and does not need suppliers; the latter relies on the traditional dealer network and hardly gives new players a chance.
But the entry of Chinese auto brands such as BYD has changed this situation. European dealers need new and more powerful new energy vehicle products, while BYD needs dealers familiar with the European market. The two sides can complement each other in core interests and can also hit it off. “Now, many European dealers are rushing to represent BYD.” The above BYD insider said.
The same logic also occurs on the user side. As a new brand, BYD is a completely unfamiliar existence to European users. The difficulties it encountered in the early days of the European market are often not problems with the product itself, but are constrained by the brand influence. Many consumers find it difficult to learn about Chinese brands such as BYD. Even if they can get in touch with them, they often do not give these “distant” Chinese brands a chance and will not include them in their purchase plans.
In this regard, BYD’s strategy is to more actively invite customers to test drive. In countries such as the UK, France, and Italy, BYD has taken test drives as a key part of sales and launched door-to-door test drive services. Soon, dealers discovered that as long as European consumers test-drove Chinese new energy vehicles, their transaction rates would increase significantly. In addition, BYD became the official partner of the European Cup in 2024, which also greatly enhanced its influence in Europe.
3. Chinese cars are no longer trapped in the “cost-effective” route
Not only BYD, but SAIC’s MG brand has also made breakthroughs in the European market. For Chinese cars, winning the European market is of great significance.
Unlike the “old battlefields” for Chinese cars going overseas, such as the Middle East and Southeast Asia, Europe is the cradle of the automotive industry and has almost the most discerning car consumers in the world. Winning the European market means that Chinese auto brands are no longer limited to the cost-effective route, but can rely on hard power such as technology, products, and services to compete directly with international established automakers.
After the first victory, BYD’s global layout has taken another step forward. In Europe, Chinese automakers are also working hard to implement the global localization strategy.
In 2023, BYD announced the establishment of a passenger car production base in Hungary; this year, BYD once again announced the establishment of its European headquarters in Budapest, Hungary, and once again increased its investment in the European market. In addition, Chery also announced in 2024 that it would cooperate with the Spanish company Ebro to take over the local Nissan former factory. SAIC Group also plans to build an automobile factory in Europe to produce MG brand cars. BYD European Headquarters
There is no doubt that localized production can accelerate the sales of Chinese auto brands in Europe. In the future, Chinese auto brands represented by BYD will also usher in two major opportunities:
The first opportunity is the breakthrough of plug-in hybrid models in the European market. In the past year, many European countries have wavered in their electrification transformation, and plug-in hybrid solutions have once again been sought after. At present, Chinese automakers have achieved comprehensive leadership in the field of plug-in hybrids. Among the competitors of Chinese automakers, Tesla insists on the pure electric route and completely abandons this market; the hybrid models of European local automakers are mostly mild hybrid solutions, and plug-in hybrid products are mostly from the “oil-to-electric” platform, with limited product strength.
According to data from the research institute Rho Motionde, in March this year, 41% of BYD’s European sales were plug-in hybrid models, and SAIC Group’s share was as high as 49%. Dataforce shows that in the first three months of this year, the sales of plug-in hybrid models of Chinese auto brands in the European market increased by 368% year-on-year, becoming a new growth pole.
The second opportunity comes from the fission effect of the first batch of consumers. Most European consumers who buy Chinese new energy vehicles are keen to try new things and have a higher acceptance of new brands and new technologies. This group of people often have a strong influence in their social circles, which can make more ordinary European consumers change their perception of Chinese cars. This will also become the biggest opportunity for Chinese cars in Europe.
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