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Investing.com-- Tesla’s European and British sales fell sharply in January, as the electric carmaker grappled with increased competition from Chinese rivals and a greater push into the sector from European manufacturers.
Tesla’s new car registrations in the European union, the European Free Trade Association and the UK slid 45.2% year-on-year to 9,945 registrations. The company’s market share also slid to 1% from 1.8% a year earlier, data from the European Automobile Manufacturers’ Association showed on Tuesday.
The sales drop came amid a 2.1% overall y-o-y drop in new car registrations in January, with declines in France, Italy, and Germany. But battery EVs were seen gaining market traction in the region, with the market share of BEVs rising to 15% from 10.9% a year ago. Overall new BEV sales grew by 34% to 124,341 units, while petrol car registrations slid 18.9% to 290,301 units.
But Tesla (NASDAQ:TSLA) appeared to have failed to capitalize on increased popularity of EVs in the region.
Volkswagen (ETR:VOWG_p) sales grew 14.9% in January the most among their peers, as the automaker ramped up its EV offerings. Toyota (NYSE:TM) sold more of its Luxury Lexus line, while Renault (EPA:RENA) also clocked higher sales.
Chinese EV maker SAIC Motor Corp Ltd (SS:600104) clocked a nearly 37% jump in sales, pulling well ahead of Tesla. The company also held a much bigger market share of 2.3%.
Tesla’s sharp sales decline reflected increasing competition for the EV maker, especially from the hybrid sector and from a dire price war with its Chinese competitors. The company clocked its first ever annual decline in deliveries in 2024, with sales also potentially impacted from a deterioration in the company’s brand image associated with CEO Elon Musk.