China's BYD Auto became the top-selling EV brand, sidelining Tesla.

According to a new report released on Monday, sales of passenger Electric Vehicles (EVs) increased globally by 61% year over year to 2.18 million units in the second quarter of this year. China's BYD Auto overtook Elon Musk's Tesla as the leading EV brand for the first time. BYD Auto shipped more than 354,000 EVs in Q2, a 266 percent YoY increase.

Tesla's global sales increased 27% YoY to more than 254,000 vehicles, which was below expectations. Tesla's US business grew, although Covid-19 shutdowns had an impact on its China business.

According to Counterpoint Research, battery electric vehicles (BEVs) made up about 72% of all EV sales, with Plug-in Hybrid Electric Vehicles (PHEVs) making up the rest. In terms of EV sales, China continued to lead the market, followed by Europe and the United States US. From just 0.64 million units in Q2 2021, China's EV sales climbed by about 92 percent YoY to reach 1.24 million units.

"As the global semiconductor shortage has eased a bit, automakers are able to cater to the increasing demand for EVs. Moreover, EV sales would have been higher if China had not experienced fresh Covid-19 outbreaks during March," Soumen Mandal, a senior analyst, stated

Although improved results are anticipated for the second half of 2022, he warned that economic downturns, the energy crisis, supply chain bottlenecks, and rising geopolitical tensions could impede the development of China's automobile market, particularly for EVs.