Tesla’s European Sales Drop 45% as EV Market Faces Increased Competition

Image Credit: Reuters

Tesla’s sales in Europe and the UK took a significant hit in January, as the electric carmaker faced increased competition from Chinese rivals and a stronger push from European manufacturers in the EV sector.

New car registrations for Tesla in the European Union, the European Free Trade Association, and the UK dropped by 45.2% year-on-year, totaling 9,945 units. The company’s market share also fell to 1% from 1.8% in the same period last year, according to data from the European Automobile Manufacturers' Association.

This decline occurred amidst a broader 2.1% drop in overall new car registrations in January, particularly in France, Italy, and Germany. However, battery electric vehicles (BEVs) saw growing popularity in the region, with their market share increasing to 15% from 10.9% last year. BEV sales grew by 34% to 124,341 units, while petrol car registrations fell by 18.9%.

Despite the rise in EV popularity, Tesla appeared unable to capitalize on the trend. Volkswagen saw a 14.9% rise in sales, leading among its peers as it expanded its EV offerings. Toyota also performed well, boosting its luxury Lexus line sales, while Renault saw an increase in registrations.

Chinese EV maker SAIC Motor Corp reported a nearly 37% jump in sales, surpassing Tesla with a larger market share of 2.3%. Tesla’s sharp sales drop highlights the growing competition, especially from hybrid vehicles and a price war with Chinese manufacturers. This decline marked Tesla's first annual drop in deliveries in 2024, with its brand image potentially suffering due to CEO Elon Musk’s leadership.

 

 

 

 

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