EU News: BYD Overtakes Tesla, Northvolt Suspends Production

In accordance with market analysis agency JATO DynamicsBYD offered extra electrical automobiles in EU international locations in April than Tesla — 7231 to 7165. Admittedly, that isn’t an enormous distinction, however as Felipe Muñoz, international auto business analyst for JATO, mentioned after the numbers had been launched, “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 that Tesla has led the European BEV market for years, while BYD only officially began operations beyond Norway and the Netherlands in late 2022.”

Some readers will quibble that BYD sells each battery electrical and plug-in hybrid automobiles, and that could be a legitimate level. Nonetheless, BYD offered over 1 million automobiles in whole within the first quarter of this yr, of which 416,000 had been battery electrics. Tesla solely managed to promote 337,000 electrical vehicles throughout the identical interval, making BYD the global leader in BEV sales.

JATO Dynamics stories that new registrations for Tesla within the EU had been down 49 p.c in April whereas BYD new registrations in Europe had been up 359 p.c in the identical interval. A lot of that improve may be attributed to the broad ranging number of fashions, each electrical and PHEV, that BYD gives to its prospects, however development in its battery electrical automobiles alone reached 159 p.c. JATO says, “BYD’s rapid expansion has already pushed it ahead of established European car brands. It is outselling Fiat, Dacia, and Seat in the UK; Fiat and Seat in France; Seat in Italy; and Fiat in Spain. This growth comes even before production begins at its new plant in Hungary.”

And as we learned recentlya BYD manufacturing unit is deliberate in Turkey as properly. The vehicles produced in Hungary and Turkey will keep away from the import tariffs on Chinese language made vehicles imposed by the EU final yr, and that can make BYD merchandise much more aggressive on the Continent. Right here is the April 2025 gross sales report for the EU from JATO Dynamics:

General, 17 p.c of all new registrations within the EU in April 2025 had been absolutely electrical, in comparison with 13.4 p.c in April 2024. Plug-in hybrids additionally elevated, from 6.9 p.c to 9 p.c, which brings the share of vehicles with a plug offered within the EU final month to 26 p.c, in accordance with a report by Electrive. Plug-in hybrid vehicles are topic to a lot decrease import restrictions, which has led some Chinese language automakers to prioritize PHEV fashions over battery electrical fashions.

Northvolt Suspends Operations At Foremost Battery Manufacturing unit

Whereas the electrical automotive information from the EU reveals gross sales are up noticeably in comparison with a yr in the past, one provider just isn’t doing properly. Sweden’s Northvolt went into chapter 11 final yr. It was making an attempt to maintain its core enterprise going so it might retain a few of its staff and pay collectors whereas it labored to restructure its debt, however now Reuters stories the corporate is discontinuing manufacturing at its important manufacturing unit in Skellefteå, Sweden, totally. That manufacturing unit has been manufacturing battery cells for only one buyer — truck producer Scania. The ultimate day of manufacturing is scheduled to happen on June 30, at which era the 900 folks nonetheless working at that manufacturing unit might be out of a job.

Mikael Kubu, the trustee in chapter, has introduced that the seek for a purchaser for the manufacturing unit, often called Northvolt Ett, is ongoing, however there are not any prospects on the horizon who might truly take over manufacturing within the close to future. A spokesperson for Scania instructed Swedish information channel SVT“Unfortunately, this is no longer financially viable for Scania,” which loosely translated means the battery cells being made by Northvolt Ett had turn into too costly in the course of the course of the chapter proceedings.

The spokesperson didn’t need to say so immediately, however the import of his remarks was that Scania would look to CATL to provide it with battery cells going ahead. “Today Northvolt and the bankruptcy trustee are announcing that they are discontinuing production. Then we shouldn’t be standing here talking about other suppliers.” Nonetheless, there are not any different battery suppliers in Europe who might fill the void left by the closure of Northvolt Ett.

Volkswagen Group is the mother or father firm of Scania and can also be a serious shareholder in Northvolt. It’s constructing its personal battery cell factories in Salzgitter, Germany; Sagunto, Spain; and St. Thomas, Canada underneath the title of PowerCo. None of these factories is able to change the availability of battery cells from Northvolt, in accordance with Electrive. which stories that the destiny of a Northvolt manufacturing unit in Heide, Germany, is much from clear at this level.

In accordance with German TV station NDRweb site preparation work, together with the set up of energy traces, is continuous however there isn’t a precise development for the manufacturing unit constructing itself going down. Northvolt Germany is a separate firm and in accordance with a spokesperson, the proceedings in Sweden should not have any impression on the deliberate manufacturing unit in Heide. Nonetheless, Electrive says, it’s unlikely that manufacturing unit might be viable and not using a contemporary infusion of capital by a brand new investor or buyers. Nobody appears to be dashing ahead to speculate, as far as anybody is aware of.

German taxpayers have already put up €600 million for the Northvolt venture in Heide. Now the problem has turn into politically explosive. The German Federal Audit Workplace is now investigating the state of affairs and a committee of inquiry could also be convened within the state parliament of Schleswig-Holstein the place Heide is positioned.

The troubles for Northvolt started nearly as quickly as the corporate started operations, however the first the world at giant knew of its difficulties was when BMW pulled out of a deal worth billions of euros that will have offered Northvolt battery cells for its Neue Klasse electrical vehicles. The state of affairs may have critical repercussions for future Porsche and Audi electrical fashions which might be properly alongside within the improvement course of, comparable to the battery electric versions of the Porsche Boxster and Cayman.

Porsche positioned all its bets on Northvolt for the batteries for these vehicles as a result of they’ve much less room for battery packs than a sedan or SUV. Northvolt promised its cells would have the next vitality density, which might enable Porsche to make use of fewer of them to energy these fashions.

What the final word destiny of Northvolt could also be is difficult to foretell presently, however should you mentioned it might simply quietly disappear from public view, you’re most likely not far flawed. RIP, Northvolt.