BYD Outsells Tesla in Europe for the Second Straight Month
Published: 26/03/2026
BYD outsells Tesla in Europe for the second straight month
17,954 registrations versus 17,664. In February 2026, BYD once again sold more cars than Tesla across Europe — and this time it was no fluke. It marks the second consecutive month the Chinese manufacturer has taken the lead, backed by 162% year-over-year growth. For anyone watching the car market in Portugal, the signal is hard to ignore: the competitive landscape is shifting.
A year ago, Tesla was registering more than double BYD's numbers in Europe. Today, BYD leads by over 10,000 vehicles in the January-February cumulative count. What happened — and what does it mean for buyers in Portugal?
The numbers behind BYD vs Tesla sales in Europe 2026
Data from the ACEA (European Automobile Manufacturers' Association) paints a clear picture. Looking at EU-only figures, BYD registered 15,438 units in February (+185.3% year-over-year), while Tesla managed 13,740 (+29.1%).
For the first two months of 2026 across the broader European market (EU + EFTA + UK):
- BYD: 36,069 registrations (+162.7%)
- Tesla: 25,753 registrations (+0.9%)
BYD's EU market share jumped from 0.6% to 1.8%. Tesla rose from 1.2% to 1.6%. These are still modest figures in absolute terms, but the speed of change is what stands out.
An important caveat: BEV vs PHEV
Not all registrations are created equal. BYD's numbers include plug-in hybrids (PHEVs), while Tesla sells exclusively battery-electric vehicles (BEVs). Models like the BYD Seal U DM-i count toward BYD's total but compete in a different segment. Even so, the growth trajectory is undeniable — BYD went from roughly 4,000 units per month in mid-2024 to over 18,000 by early 2026.
Why BYD is growing so fast in Europe
Several factors are driving this surge. First, range of choice. BYD offers both pure electric and plug-in hybrid models at multiple price points, from the affordable Dolphin Surf (starting around EUR 22,990) to higher-end options. Tesla, by contrast, relies on just two models in Europe — the Model 3 (from approximately EUR 41,000) and the Model Y.
Then there is price. In a market where affordability decides who sells, having options below EUR 25,000 is a game-changer. The Dolphin Surf sits in a segment Tesla simply does not cover.
Tesla itself contributed to the shift. In 2025, EU registrations fell 27.8% for the full year, with steep drops in Germany (-48%) and Sweden (-67%). Factory shutdowns for the Model Y "Juniper" refresh explain part of that decline, but not all of it. Brand perception has also taken a hit across several European markets.
The European picture: EVs gaining ground, petrol in freefall
This is not just a BYD story. The entire European market is accelerating its electric transition. BEVs accounted for 18.8% of EU sales in the first two months of 2026, up from 15.2% a year earlier. In February alone, electrified vehicles (BEV + PHEV + HEV) made up 67% of total registrations.
On the opposite end, petrol car registrations collapsed 23.3% in February. In France, the drop reached 48.5%. Diesel continues to shrink (-17.7%), now holding just 8.1% share.
| Powertrain | Share (Jan-Feb 2026) | Change |
|---|---|---|
| Hybrid (HEV) | 38.7% | — |
| Petrol | 22.5% | -23.3% (Feb) |
| Battery-Electric (BEV) | 18.8% | +3.6 pts |
| Plug-in Hybrid (PHEV) | 9.8% | +2.4 pts |
| Diesel | 8.1% | -17.7% |
Geopolitical conflicts and rising oil prices are accelerating the shift. Countries like France (+38.5% in BEV sales) and Germany (+26.3%) are seeing particularly strong growth.
What this means for car buyers in Portugal
For Portuguese buyers, BYD's European growth translates into more choice and stronger competition — which tends to benefit the consumer. Salvador Caetano, BYD's official dealer partner in Portugal, already has showrooms in Lisbon, Porto, and other cities, with the network continuing to expand.
Prices on the Portuguese market
BYD's pricing is one of its strongest cards here:
- BYD Dolphin Surf: from approximately EUR 22,990
- BYD Dolphin: from approximately EUR 35,500
- Tesla Model 3: from approximately EUR 41,000
If you are looking for an electric car under EUR 25,000, BYD is currently one of the few brands with an established dealer network in Portugal. Worth noting: electric vehicles in Portugal are exempt from ISV (the vehicle registration tax) and benefit from reduced IUC (annual road tax) — making these prices even more competitive compared to combustion equivalents.
European factory plans and pricing impact
BYD is building a factory in Hungary, which should help reduce costs and navigate the EU's anti-dumping tariffs on Chinese vehicles. There is also talk of a potential third European plant — with Spain, Germany, and Portugal among the candidates. The CALB lithium battery factory under construction in Sines is often cited as a point in Portugal's favor.
Local European production would mean more competitive pricing and shorter delivery times. For the Portuguese market, where price sensitivity is high, this could be a significant factor.
Frequently Asked Questions
In 2026, BYD offers some of the most affordable electric cars on the Portuguese market. The BYD Dolphin Surf starts at approximately EUR 22,990, while the BYD Dolphin begins at around EUR 35,500. Electric vehicles in Portugal are exempt from the ISV registration tax and benefit from reduced annual road tax (IUC), making these prices even more competitive compared to combustion equivalents. Salvador Caetano, BYD's official partner, operates dealerships in Lisbon, Porto, and other cities.
Yes. In the first two months of 2026, BYD registered 36,069 vehicles across Europe (EU + EFTA + UK), compared to Tesla's 25,753 — a gap of over 10,000 units. BYD grew 162.7% year-over-year while Tesla managed just 0.9%. However, it is important to note that BYD's figures include plug-in hybrids, whereas Tesla sells exclusively battery-electric vehicles.
The BYD Dolphin Surf is significantly cheaper, starting at around EUR 22,990 in Portugal, while the Tesla Model 3 begins at approximately EUR 41,000 — a difference of nearly EUR 18,000. The two models are not directly comparable in size and performance, but for buyers looking for an electric car under EUR 25,000, BYD is currently one of the few brands with an established dealer network in the country.
BYD is building a factory in Hungary, expected to reduce production costs and help navigate the EU's anti-dumping tariffs on Chinese vehicles. There is also talk of a potential third European plant, with Spain, Germany, and Portugal among the candidates — the CALB lithium battery factory under construction in Sines is often cited as a point in Portugal's favor. Local European production should result in more competitive pricing and shorter delivery times.
Tesla's EU registrations fell 27.8% in 2025, with particularly steep drops in Germany (-48%) and Sweden (-67%). Factory shutdowns for the Model Y "Juniper" refresh explain part of the decline, but eroding brand perception across several European markets also played a role. Meanwhile, competitors like BYD grew from roughly 4,000 monthly registrations in mid-2024 to over 18,000 by early 2026.
What to watch in the coming months
BYD continues to broaden its European lineup and strengthen its distribution network. Tesla, despite the refreshed Model Y, faces increasingly diverse competition — not just from BYD, but from European brands and other Chinese manufacturers.
If you are considering buying an electric car in Portugal, the timing is favorable. More models, more price competition, and an expanding MOBI.E charging network across the country. Keep an eye on the coming months — particularly new BYD model announcements and any price adjustments from Tesla as it fights to reclaim market share.