BMW surpasses Tesla in European EV sales for first time
BMW has surpassed Tesla in the European battery electric vehicle (BEV) market for the first time, according to data from market research firm JATO Dynamics. The German automaker sold 14,869 BEV cars in July, approximately 300 more than its American competitor. This significant achievement is largely attributed to the strong demand for BMW's flagship electric vehicles i4 and iX1.
Traditional automakers are gaining traction in the EV market
The recent data highlights the success of traditional automakers like BMW in a market previously dominated by pure electric-vehicle manufacturers such as Tesla. This shift is fueled by government policies and brand loyalty. However, the demand for electric cars is witnessing a slowdown in Europe after countries including Germany and Sweden reduced or stopped subsidies, leading manufacturers to reconsider their EV strategies.
Uncertainties surrounding EV subsidies and incentives
Felipe Munoz, Global Analyst at JATO Dynamics, noted that "the lack of clarity around the incentives for - and future of - EVs continues to present a barrier to consumers considering an EV." He added that these factors, along with the low residual value of EVs, contributed to the decline seen in July. Despite Tesla's dominance as the world's most valuable automaker, traditional automakers like BMW and Volvo are making significant strides due to uncertainties surrounding EV subsidies and incentives.
BMW's sales surge as Tesla's registrations drop
In July, BMW reported a 35% increase in sales compared to the same month last year, while Tesla experienced a 16% decrease in registrations. Approximately 139,300 new electric cars were registered last month, marking a 6% drop from July 2023. The market share of EVs also slipped to 13.5% from 14.6% a year earlier. Despite this overall decline, Tesla's Model Y managed to retain its position as Europe's top-selling electric model in the first half of the year.
Chinese carmakers face challenges in European market
Chinese carmakers led by BYD and SAIC Motor have been gradually expanding their presence in Europe this year. However, the threat of EU tariffs has slowed their momentum. Registrations dropped off from June to July, as EU moves ahead with provisional levies that will take effect later this year.
