Tesla’s new car registrations in Europe dropped by 27.9% in May compared to a year earlier, marking the fifth consecutive month of decline, even as overall battery-electric vehicle (BEV) sales in the region jumped by 27.2%, according to data from the European Automobile Manufacturers Association (ACEA).
Tesla’s market share in Europe shrank to 1.2% in May from 1.8% a year ago, amid intensifying competition from lower-cost Chinese EV makers and growing consumer backlash tied to the political statements of CEO Elon Musk. The company’s revised Model Y, expected to boost flagging sales, has yet to show a meaningful impact.
Meanwhile, overall new car sales in the European Union, the UK, and the European Free Trade Association (EFTA) rose 1.9% year-on-year to 1.11 million vehicles in May. The strongest momentum came from plug-in hybrids and alternative fuel vehicles, ACEA data showed.
Sales at Chinese state-owned SAIC Motor rose 22.5%, while BMW posted a 5.6% increase. Japan’s Mazda saw sales drop 23%. Despite strong EV demand, total EU car sales have declined 0.6% year-to-date.
Sales of electrified vehicles continued to climb across the EU in May. Registrations of BEVs surged 26.1%, plug-in hybrids (PHEVs) rose 15%, and hybrid-electric vehicles (HEVs) increased 19.8%. Combined, these powertrains accounted for 58.9% of total passenger car registrations, up from 48.9% a year ago.
Among Europe’s largest markets, Germany and Spain saw gains of 1.2% and 18.6%, respectively, while sales declined 12.3% in France and 0.1% in Italy. In the UK, registrations were up 1.6%.