Tesla's European sales plummeted by half within a single month. - European Tesla sales have dropped by half within a single month.
Tesla's European Sales Plummet by Half in April; BYD and VW Gaining Ground
In a significant setback for Tesla, new registrations of its electric vehicles in the European Union dropped by more than half in April, according to data from the European Automakers' Association (Acea). This follows a year-to-date drop of over 46 percent, with only 41,677 cars sold in the first four months of the year.
While the overall European car market has stagnated this year, the electric car segment is showing promising growth, having grown by a quarter in the first four months, accounting for 15.3 percent of new registrations in the EU compared to 12 percent a year ago.
Volkswagen (VW) is making steady progress in the electric car market, more than doubling its deliveries of pure electric vehicles (EVs) in Europe during the first quarter. BYD, the Chinese electric vehicle market leader, is also gaining momentum, and has overtaken Tesla in Europe in the pure electric vehicle (BEV) segment for the first time according to market researchers at Jato Dynamics.
In Jato's figures, which cover 28 countries instead of just the EU, BYD sold 7,231 cars in April, just ahead of Tesla's 7,165. The analyst from Jato, Felipe Munoz, described this as a "turning point" for theEuropean car market, as Tesla has led the market for years, and BYD has only recently started gaining momentum.
Currently, BYD is relying heavily on dealer self-registrations and sales to car rental companies, with only around 12 percent of the 2,791 newly registered BYD models in Germany going to private owners. While business sales make up the lion's share of registrations for other carmakers as well, the proportion of private buyers for BYD is very low—Mercedes has almost 37 percent, and the VW car brand has around 26 percent.
Overall, BYD's sales in Germany are currently at a low level, as are those of other providers like Nio and Xpeng. Chinese manufacturers are initially focusing on Britain, Spain, and Italy, where they are doing well with this strategy, as those markets are seen as easier for newcomers to find a place in the market due to less domestic competition.
The Brussels tariffs against imported electric vehicles from the People's Republic have, however, had little impact on Chinese providers, who have adapted by diversifying their offerings, notably increasing plug-in hybrid models which are not yet subject to the same tariffs.
BYD is planning to start production at a new plant in Hungary to further boost its ability to serve the European market, but it has not yet revealed its plans for Germany. The electric vehicle company is focusing on post-purchase service and expanding the number of service workshops in Europe to address the concerns of many German car drivers regarding service and repairs.
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- Despite Tesla's significant drop in European sales, other players like BYD and VW are increasingly dominating the market, with BYD surpassing Tesla in Europe's pure electric vehicle segment for the first time, according to Jato Dynamics.
- In response to the competitive landscape and German drivers' concerns about service and repairs, electric vehicle company BYD is focusing on post-purchase service and expanding the number of service workshops in Europe, while planning to start production at a new plant in Hungary to further boost its ability to serve the European market.
