Last month, BMW overtook Tesla in terms of sales and led the European electric vehicle market for the first time. The German automaker is currently experiencing rapid sales growth amid difficulties for other manufacturers.
According to Jato Dynamics, in July, sales of all-electric BMWs in the EU jumped by more than a third to 14869 units. At the same time, Tesla’s figure fell by 16% to 14561 units.
Although Tesla is still the leader in electric vehicle sales since the beginning of the year, it is losing market share in Europe to companies such as BMW and Volvo. Last month, European car buyers registered a total of 139,300 new electric vehicles, down about 6% from a year ago.
Demand for electric vehicles in Europe is cooling after countries such as Germany and Sweden ended or reduced subsidies. This has prompted automakers to abandon their ambitions for electric vehicles. Volkswagen — the largest automaker in the region — said this month that it was cutting capacity at its German plants and indicated that it may delay the release of new electric models. Mercedes-Benz is abandoning its electrification plans and battery initiatives.
«Lack of clarity on the incentives — and future — of electric vehicles continues to be a barrier for consumers», — said Jato Dynamics analyst Felipe Munoz. «These factors, along with the low residual value of electric vehicles, contributed to the drop seen in July».
BMW managed to buck the trend thanks to strong demand for electric vehicles, including the i4 and iX1, which outsold similarly sized Mercedes and Audi models. Tesla Model Y retained its position as the best-selling electric model in Europe in the first half of the year, although demand for the four-year-old model is falling, with sales down 16% in July.
Chinese automakers led by BYD and SAIC Motor have been gradually expanding their operations in Europe this year, but the threat of EU duties has slowed their momentum. To circumvent the duties, Chinese automaker Dongfeng plans to open a plant in Europe.
Source: bloomberg
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