Tesla’s new car sales in Europe declined by 27.9% in May compared to the same month last year, even as overall sales of fully electric vehicles in the region increased by 27.2%. The updated Model Y has yet to reverse the company’s downward trend. Total car sales in Europe rose by 1.9%, with the strongest growth seen in plug-in hybrids and vehicles powered by alternative fuels, according to data from the European Automobile Manufacturers Association.
Tesla has now experienced five consecutive months of declining sales in Europe. Factors include increased competition from more affordable Chinese electric vehicles and, in some cases, consumer backlash related to CEO Elon Musk’s political stance. Tesla’s share of the European market dropped to 1.2% in May, down from 1.8% a year earlier.
The redesigned Model Y was intended to refresh Tesla’s ageing lineup amid intensified competition from traditional automakers and Chinese brands, which continue to expand rapidly despite trade tensions. Chinese carmakers maintained strong sales momentum in Europe last month, selling 65,808 vehicles and doubling their market share to 5.9%, based on separate data from Jato Dynamics.
New car sales across the European Union, the UK, and the European Free Trade Association reached 1.11 million vehicles in May, rebounding from a slight decline in April. Chinese state-owned SAIC Motor and Germany’s BMW posted year-on-year increases of 22.5% and 5.6%, respectively, while sales at Japan’s Mazda fell by 23%. Within the EU, overall car sales have decreased by 0.6% so far this year.
This comes amid rising demand for electric and hybrid vehicles. Registrations of battery-electric, plug-in hybrid, and hybrid-electric vehicles rose by 26.1%, 15%, and 19.8% respectively. These types of cars made up 58.9% of total EU passenger car registrations in May, an increase from 48.9% in the same month last year. Among major EU markets, new car sales grew by 18.6% in Spain and 1.2% in Germany, while falling by 12.3% in France and 0.1% in Italy.
