BMW overtook Tesla last month to lead Europe's electric vehicle market for the first time, continuing strong growth for the German automaker as other manufacturers struggle.
BMW's sales of fully electric vehicles in the European Union rose by more than a third in July to 14,869 units, according to data compiled by consultancy Jato Dynamics, while Tesla registrations fell 16% to 14,561 units.
Tesla remains a commanding lead in EV sales so far this year, but is ceding market share in Europe to the likes of BMW and Volvo Car AB. European car buyers registered a total of 139,300 new EVs last month, down about 6 percent from a year ago.
Demand for electric vehicles has cooled in Europe after countries including Germany and Sweden ended or scaled back subsidies, causing manufacturers to scale back their EV ambitions. Europe's largest automaker, Volkswagen AG, said this month it could cut capacity at high-cost factories in Germany and delay the launch of new electric-vehicle models. Mercedes-Benz Group AG is scaling back its electrification plans and battery efforts.
“EV incentives and uncertainty about the future of EVs continue to pose barriers for consumers,” said Felipe Munoz, an analyst at Jato. “These factors, along with low EV residual values, led to the decline in sales in July.”
BMW was able to buck the trend thanks to strong demand for EVs such as the i4 and iX1, which outsold similarly sized models from Mercedes and Audi. Tesla's Model Y remained Europe's best-selling electric car in the first half of the year, but demand for the four-year-old model has been waning, with sales falling 16% in July.
Tesla shares were down 1.5% as of 10:30 a.m. New York time on Thursday and are down about 11% this year.
Chinese automakers, led by BYD and SAIC Motor, have been gradually expanding in Europe this year, but the threat of EU tariffs has slowed their momentum. Registrations fell from June to July as the EU moves forward with implementing temporary tariffs that will take effect later this year, according to research firm Dataforce.
Recommended Newsletter: Advanced insights for high-powered executives. Subscribe to the CEO Daily newsletter for free today. Subscribe now.
Source link
