Tesla Loses Ground in China and Europe as BYD, Xiaomi Gain Momentum
- tech360.tv
- May 29
- 2 min read
Tesla is losing its status as the top electric vehicle brand in China and facing growing competition in Europe, according to a new UBS report.
The number of EV buyers in mainland China who chose Tesla as their top pick dropped to 14%last year, down from 18% a year earlier and a peak of 30% in 2020. Globally, Tesla’s favourability also declined, with only 18% of surveyed buyers naming it their top choice, compared to 22% in 2023.
In the United States, Tesla’s positive perception fell to 29% from 38%, while in Europe it dropped to 15% from 20%, UBS said in its survey of 10,500 participants.
UBS attributed the decline to intense competition in China and brand damage in Europe linked to CEO Elon Musk’s political involvement. The report noted that Tesla is no longer seen as the technology leader in China.
BYD, the world’s largest EV maker, has overtaken Tesla in both performance and consumer perception in China. Xiaomi, a smartphone and appliance manufacturer, has also gained traction in the EV market, despite Apple’s failed attempt to enter the sector.
In April, BYD outsold Tesla in Europe for the first time, delivering 7,231 EVs, a 169% increase from a year earlier. Tesla’s sales in the region fell 49% to 7,165 units, according to Jato Dynamics.
BYD’s Chinese-made EVs now face a 17% additional tariff in the European Union.
China’s EV industry continues to outpace global competitors, producing more electric vehicles annually than the rest of the world combined. Tesla has led China’s premium EV segment since 2020, with a 6% market share in 2024 based on 657,000 units sold.
However, Tesla’s deliveries in China fell 31.6% in the first quarter of 2024 to 134,607 units, according to CnEVPost.
Xpeng’s Mona M03, priced at 119,800 yuan (USD 16,629), offers similar smart features to Tesla’s Model 3 at about half the price, posing a serious challenge to the US carmaker.
Xiaomi recently unveiled its YU7 SUV, designed to compete with Tesla’s Model Y. The vehicle includes a preliminary self-driving system, a large multimedia screen and a high-performance battery. Pricing details have not yet been announced.
Tesla’s top-choice status in China fell to 14% in 2023, down from 30% in 2020
Global favourability dropped to 18%, with declines in the US and Europe
BYD outsold Tesla in Europe in April, delivering 7,231 EVs
Source: SCMP
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