Tesla stalls in Europe as Chinese EVs surge, buyer sentiment shifts

Tesla stalls in Europe as Chinese EVs surge, buyer sentiment shifts



Tesla CEO Elon Musk performs a Nazi salute during the inauguration of US President Donald Trump in Washington, DC, on January 20, 2025. — AFP pic

Tuesday, 27 May 2025 12:42 PM MYT


BERLIN, May 27 — Tesla’s sales in Europe fell 49 per cent in April from a year earlier, even as battery-electric sales rose by 27.8 per cent, as the US EV maker’s upgrade of its Model Y shows little sign of improving the brand’s tarnished image in the region.

Overall car sales in the region remained roughly consistent with last year, falling just 0.3 per cent, with the strongest sales growth coming from electric and plug-in hybrid cars, data by the European Automobile Manufacturers Association (ACEA) showed.

Why it’s important

Tesla’s sales in Europe continue to drop, reflecting a shift away from the brand as Chinese competition strengthens and some protest against Elon Musk’s political views.

European carmakers strive to cut domestic costs and tackle competition amid US tariffs on auto imports and a slowing global economy, with uncertainty overshadowing the industry’s outlook despite eased US-China trade tensions.


By the numbers

April sales in the European Union, Britain and the European Free Trade Association (EFTA) fell to 1.07 million cars, following a 2.8 per cent growth a month before, the ACEA data showed.


Registrations at Chinese state-owned automaker SAIC Motor and Mitsubishi grew by 24.5 per cent and 22.1 per cent respectively, while they fell by 24.5 per cent at Mazda.

Tesla’s sales fell for a fourth month in a row, down 49 per cent year-on-year, and its share of the total market nearly halved to 0.7 per cent from 1.3 per cent a year ago.

In just the EU – not including Britain and the EFTA – total car sales fell 1.2 per cent year-on-year, declining for a fourth consecutive month, as the registrations of battery electric (BEV), plug-in hybrid (PHEV) and hybrid electric (HEV) cars grew by 26.4 per cent, 7.8 per cent and 20.8 per cent respectively.



A Tesla car is pictured after being smashed-up at an anti Elon Musk protest, in south London on April 10, 2025. — AFP pic



Electrified vehicles – either BEV, HEV or PHEV – sold in the bloc accounted for 59.2 per cent of passenger car registrations in April, up from 47.7 per cent in the previous year.

Among the largest EU markets, total car sales in Spain and Italy increased by 7.1 per cent and 2.7 per cent respectively, while in France and Germany they dropped by 5.6 per cent and 0.2 per cent.

In Britain, registrations were down 10.4 per cent.


Context

Growing interest in Europe’s EV market, driven by emission targets and cheaper models, contrasts with global policies encouraging EVs amid trade tensions, slowing markets, and potential plant closures and job losses. — Reuters