German automaker BMW is still lagging behind Tesla in sales so far this year, but sales of its all-electric cars rose by more than a third in July.
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BMW dominated Europe's electric car market for the first time in July, recording a surge in demand as other rivals struggled.
German automakers sold 14,869 fully electric vehicles in July, up 35% from a year earlier, according to research firm Jato Dynamics.
Meanwhile, Tesla sold 14,561 EVs, down 16% year over year.
As for the wider market, Europeans are losing love for electric cars, with EV registrations down 6% last month compared with July 2023, according to data from Jato.
“Uncertainty about EV incentives and the future continues to act as a barrier for consumers considering an EV purchase,” said Felipe Munoz, global analyst at JATO Dynamics.
Germany ended EV subsidies in December as part of a cost-cutting measure, forcing automakers to rethink their electrification strategies.
So far, BMW has weathered the storm relatively unscathed compared to its competitors, with some analysts blaming customer brand loyalty.
Some experts say Tesla CEO Elon Musk's polarizing political rhetoric could be hurting the US company's sales.
Still, Tesla remains the top seller so far this year, with a total of 178,700 units sold.
BMW came in second with 97,525 units, and Volkswagen came in third with 88,445 units.