Tesla faces increased competition from established European carmakers as well as Chinese upstarts.
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Tesla faces increased competition from established European carmakers as well as Chinese upstarts.
Tesla's new car sales in Europe plunged by a significant 27.9% in May compared to the previous year, according to data released by the European Automobile Manufacturers Association (ACEA). This sharp decline comes despite a robust 27.2% surge in overall fully-electric vehicle sales across the region, highlighting a widening gap between the U.S. EV maker and its increasingly aggressive competitors.
The much-anticipated revised Model Y has done little to revive the company's fortunes, as Tesla's European market share dipped to a mere 1.2% in May from 1.8% a year ago. This marks the fifth consecutive month of declining sales for Tesla in Europe, a market where EV adoption continues to accelerate.
In stark contrast, several traditional automakers and emerging Chinese brands are successfully capitalising on the growing demand for electric and electrified vehicles. While overall car sales in Europe rose by a modest 1.9%, the strongest growth was observed in plug-in hybrids and cars powered by alternative fuels, signalling a diversified shift in consumer preferences.
Also see: Tesla to Begin Selling Model Y in India by Mid July, CBUs Being Imported from China: Report
Among Tesla's rivals, Chinese state-owned SAIC Motor (which includes the MG brand) saw its registrations soar by 22.5% in May. Germany's BMW also posted a healthy 5.6% increase in registrations, indicating strong performance from established European players. In the broader electric vehicle segment, Volkswagen Group brands, including Skoda and Renault, have reported notable gains, with models such as the Skoda Elroq and Renault 5 garnering strong interest. JATO Dynamics data for April even indicated that BYD, the Chinese EV giant, outsold Tesla in Europe for the first time in fully-electric car sales, showcasing a remarkable 359% increase for BYD over the same period.
As the European market diversifies with new entrants and updated offerings, Tesla faces an uphill battle to regain its footing and leadership position.
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