Tesla Faces Decline in EU Amidst Rising Electric Vehicle Sales

Tue 25th Feb, 2025

Tesla, once a dominant force in the electric vehicle (EV) market, is experiencing a significant downturn in sales within the European Union. According to recent data from the European Automobile Manufacturers Association (ACEA) released in Brussels, the company saw its new registrations plummet by 50% in January, totaling just 7,517 vehicles sold.

While Tesla's numbers have decreased, the overall demand for electric vehicles in the EU has surged. January witnessed a remarkable 33% increase in new registrations of electric vehicles, with a total of 124,341 fully electric vehicles (Battery Electric Vehicles - BEVs) registered. This surge is prominently driven by robust growth in countries like Germany, Belgium, and the Netherlands.

In stark contrast, the Volkswagen Group maintained its position as the market leader in the EU, achieving a nearly 6% rise in new registrations, amounting to almost 230,000 vehicles. Although there was a slight decline in new registrations for Volkswagen's luxury brand, Porsche, the overall performance of the group remains strong.

Following Volkswagen, Stellantis and Renault secured the second and third spots, respectively, in the EU market. Meanwhile, the BMW Group noted a 1% decrease in registrations, and Mercedes-Benz faced a more substantial decline of 6% in new registrations during the same period.

Overall, the European automotive market began the new year on a cautious note, with total new car registrations dropping by 2.6% compared to the previous year, totaling 831,201 vehicles. The decline in traditional combustion engine vehicles contrasts sharply with the notable increase in electric vehicle registrations. This shift can be partially attributed to the expiration or reduction of incentives in several European countries, which had previously spurred demand for electric vehicles.

Notably, while the interest in plug-in hybrid vehicles has slightly waned, the numbers for non-rechargeable hybrid vehicles have surged by over 18%, reaching 290,014 units. This category includes vehicles equipped with fully operational electric motors as well as mild hybrids that solely assist in reducing fuel consumption.

The evolving landscape of the electric vehicle market in Europe highlights a significant transition as traditional players strengthen their foothold while Tesla grapples with declining sales. As the demand for electric vehicles rises, it raises questions about Tesla's future strategies and market positioning in an increasingly competitive environment.


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