In a surprising turn of events, German automaker BMW has surpassed U.S. rival Tesla in electric vehicle sales in the European Union for the first time in history. According to data analyzed by consultancy Jato Dynamics, BMW sold 14,869 all-electric vehicles in the EU in July 2024, marking a nearly 30% increase from the previous month. In contrast, Tesla saw a 16% decline in deliveries, with 14,561 units sold during the same period. This shift in sales dynamics highlights BMW’s strong performance in a market that has experienced an overall slowdown.
While Tesla remains the overall sales leader in the EU market for the first seven months of the year, BMW’s significant advancement in July is a noteworthy development. The German luxury car manufacturer’s success can be attributed to the robust demand for its electric models, including the i4 and iX1, which outperformed similar offerings from competitors like Mercedes and Audi. On the other hand, Tesla’s Model Y, which has been Europe’s best-selling electric model in the first half of the year, is experiencing a decline in deliveries as the model ages.
The European electric car market saw a total of 139,300 new registrations in July 2024, representing a 6% decrease compared to the same period in the previous year. This decline can be attributed to various factors, including the reduction or discontinuation of subsidies in countries like Germany and Sweden. The lack of clarity on subsidies and the future of electric cars has been a barrier for consumers, leading to a decrease in demand. Additionally, the low residual value of electric cars has also contributed to the decline in sales.
Major automakers in Europe, such as Volkswagen AG and Mercedes-Benz Group AG, are reevaluating their electric car strategies in response to changing market conditions. Volkswagen recently announced plans to cut capacity at its high-cost plants in Germany, potentially delaying the launch of new electric models. Similarly, Mercedes-Benz is reviewing its fleet electrification plans and battery-powered models in light of the evolving market landscape.
Despite the overall slowdown in the European electric car market, Chinese manufacturers like BYD Co. and SAIC Motor Corp. have been gradually expanding their presence in the region. However, the imposition of new tariffs by the European Union has slowed the influx of Chinese electric cars, with a 45% decrease in deliveries in July compared to the previous month.
In conclusion, BMW’s achievement of outselling Tesla in the EU electric vehicle market for the first time underscores the brand’s growing prominence in the electric car segment. As the industry continues to evolve and adapt to changing market conditions, it will be interesting to see how automakers adjust their strategies to meet consumer demand and regulatory challenges in the future.