Rail freight operators could win big from a surge of Chinese electric vehicles into Europe, with Shenzhen based BYD outselling Tesla in the market for the first time.
Figures from Jato Dynamics for April show a 359% year-on-year leap in BYD’s Europe sales , as it registered some 7,231 new vehicles over the period to surpass Tesla, which has led the EV market in Europe for years.
Felipe Munoz, global analyst at Jato, said: “Although the difference between the two brands’ monthly sales totals may be small, the implications are enormous.
“This is a watershed moment for Europe’s car market, particularly when you consider Tesla has led the European battery EV market for years and BYD only officially began operations beyond Norway and the Netherlands in late 2022.”
Contrasting starkly with BYD’s monumental growth, Tesla sales recorded another monthly decline, as new registrations dropped to 7,165, representing a 49% downturn, year on year.
And yesterday, BYD launched its tenth model in Europe. Costing less than €23,000 allows it to compete with “budget” EV models from the likes of Dacia and Renault, with Kazakh rail freight operator KTZ seemingly set to benefit.
By the end of April, KTZ had handled some 10,524 teu at its terminal in Xi’an – close to half the total handled last year, and BYD is one of several EV makers making use of its rail freight capacity into Europe, with more than 30% of the box trains destined for the EU formed at the Xi’an facility.
Meanwhile, success in Europe may prove pivotal for BYD, which in Q4 23 overtook Tesla as the world’s largest EV manufacturer. In its home market, it now finds itself wrapped in a discount battle with domestic rivals.
Average discounts have been cited as ranging from 8% to as high as 16%, with JP Morgan warning that Chinese EV makers are facing an uncertain future as a consequence.
For BYD, the move to rail freight aligns with expectations that it will be forced to increase its manufacturing presence in Europe if it wishes to continue selling there.
