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Tesla’s car sales in Europe and the UK tumbled in January, facing mounting competition from Chinese automakers and European brands expanding their EV lineups. New Tesla registrations in the EU, the UK, and the European Free Trade Association fell 45.2% year-over-year to 9,945 units, cutting its market share from 1.8% to 1%, according to data from the European Automobile Manufacturers' Association.
The drop came amid a 2.1% overall decline in new car registrations in the region, with major markets like France, Italy, and Germany seeing lower sales. However, battery EVs gained momentum, increasing their market share to 15% from 10.9%, as BEV sales surged 34% to 124,341 units. Meanwhile, petrol car registrations slumped 18.9% to 290,301 units.
Despite growing EV demand, Tesla struggled to capitalize. Volkswagen saw a 14.9% rise in sales, driven by its expanding EV lineup, while Toyota’s Lexus division and Renault also recorded gains. Chinese automaker SAIC Motor Corp surged 37% in sales, securing a 2.3% market share, outpacing Tesla.
Tesla’s steep decline highlights rising competition, particularly from hybrid vehicles and aggressive pricing strategies by Chinese EV makers. The company posted its first-ever annual decline in deliveries in 2024, with sales potentially impacted by brand image concerns linked to CEO Elon Musk.
