In January, Tesla experienced a significant decline in new car registrations within the European Union, with numbers dropping by 17% compared to the same month last year. According to recent data from the European Automobile Manufacturers’ Association, the electric vehicle manufacturer sold 8,075 cars in the EU during this period, down from 9,733 in January of the previous year. This decline resulted in Tesla’s market share slipping to 0.8%, a slight reduction from the 1.0% share it held over the same timeframe last year.
This downturn in Tesla’s registrations aligns with a broader trend of diminishing demand for new cars across the EU, where total new-car registrations fell by 3.9%. However, the electric vehicle market continues to show resilience and growth, particularly in the battery-electric vehicle (BEV) segment, which has seen its market share expand to 19.3%, up from 14.9% in January 2022. This increase highlights the intensifying competition in a segment that Tesla previously dominated.
Hybrid-electric vehicles emerged as the most popular powertrain option, accounting for 38.6% of registrations, while traditional petrol and diesel models continue to decline in favor of more environmentally friendly alternatives.
The stark contrast in Tesla’s performance against the backdrop of strong growth for BEVs in prominent markets like France and Germany suggests that longstanding European automotive brands are exerting increased pressure on the U.S. carmaker. This situation indicates a shifting landscape in the electric vehicle market in Europe as consumer preferences evolve and competition escalates.
