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Tesla's European Sales Drop for Fifth Month as EV Rivals Gain

Tesla's European Sales Drop for Fifth Month as EV Rivals Gain

Tesla's European new car sales fell by 27.9% from a year ago in May, even though sales of fully-electric vehicles in the region grew by 27.2%. The revised Model Y has yet to show any signs of reviving Tesla's fortunes.

The European Automobile Manufacturers Association's (ACEA) data showed that overall car sales in Europe increased by 1.9%. Plug-in hybrids and alternative fuel cars saw the biggest growth.

Why it's important

Tesla's European Sales have fallen for the fifth consecutive month as customers opt for cheaper Chinese EVs, and in some cases protest against Elon Musk.

Tesla's European Market Share dropped from 1.8% to 1.2% in just one month.

The new Model Y will revamp the company's aging model range, as Chinese and traditional automakers launch EVs in a rapid rate amid trade tensions.

By the Numbers

ACEA data show that new vehicle sales in May in the European Union (EU), Britain, and the European Free Trade Association increased to 1,11 million vehicles. This follows a decline of 0.3% in April.

The registrations of SAIC Motor, a Chinese state-owned company, and BMW in Germany rose by 22,5% and 5,6% respectively. Mazda's registrations fell by 23%.

Total car sales in the EU have declined by 0.6% this year.

This is despite the growing demand for EVs. Registrations of battery-electric cars (BEV), hybrid-electric vehicles (HEV), and plug-in hybrids (PHEV) have increased by 26,1%, 15,8%, and 19,8%, respectively.

In May 2024, the EU's sales of BEVs (Battery Electric Vehicles), HEVs (High-Efficiency Vehicles) and PHEVs together accounted for 48.9% of all passenger car registrations.

In the EU's largest markets, sales of new cars in Spain and Germany increased by 18.6% and 1,2%, respectively, while they fell in France and Italy by 12.3%, and 0.1%, respectively.

Registrations in Britain were up by 1.6%. Reporting by Jesus Calero, Editing by Mark Potter

(source: Reuters)