China's NEVs break through in Europe, accelerate overseas expansion

In April 2025, Chinese automaker BYD surpassed Tesla in monthly registrations of pure electric vehicles in the European market for the first time.

According to data from market research firm Jato Dynamics, BYD's registrations in April rose by 169% year-on-year, while Tesla's fell by 49%.

Although BYD ranked only tenth in overall registrations in the European market according to Jato Dynamics, its first-ever overtaking of Tesla was seen by foreign media as a symbolic milestone–Chinese new energy vehicle (NEV) manufacturers are reshaping the landscape of Europe's auto market.

Tesla, a leading EV brand, began its layout in the European market more than a decade ago–well before Chinese companies–and has long held the title of Europe's most popular foreign electric vehicle brand.

Even so, Chinese brands have continued to grow steadily, emerging as a formidable new force in the European car market.

Over the past decade, China has gradually developed a complete industrial ecosystem from vehicle manufacturing and battery R&D to intelligent driving systems. On this basis, even in the face of high tariffs, Chinese car brands have leveraged their cost advantages and faster product iterations to penetrate mainstream overseas markets.

Jato Dynamics data shows that despite the imposition of tariffs by the EU, registrations of electric cars made by Chinese automakers in April rose by 59 percent year-on-year, reaching almost 15,300 units. This outpaces the 26 percent growth rate of European, Japanese, Korean, and US carmakers.

According to the China Association of Automobile Manufacturers, China's automobile production and sales both exceeded 10 million units for the first time in history during the first four months of 2025. Among them, 642,000 NEVs were exported, marking a 52.6 percent increase year-on-year.

In 2025, Chinese car brands have intensified their global expansion. BYD announced its entry into the Swiss market, Xpeng entered Bahrain, and IM Motors launched in Australia. Companies like Chery and SAIC have ventured into establishing their own ocean freight fleets, actively seizing control of maritime logistics.

At the same time, the expansion of the industrial chain abroad is advancing in tandem. Chinese electric vehicle (EV) battery maker Contemporary Amperex Technology Co. Limited (CATL) announced a US$1.2 billion investment to build a battery factory in Indonesia. BYD's first European vehicle plant in Hungary is set to begin production, while Great Wall Motors is accelerating construction of a localized digital auto plant in Brazil.

With the progress of overseas plant construction, increased control over shipping capacity, and easing of global trade tensions, Chinese auto exports are likely to continue rising, creating even greater opportunities for growth.