EU's Car Market Shows a Slight Rise, Boost in Electric Vehicles... Except Tesla
Improved Outlook for New Car Sales in EU: Electric Vehicle Segment Records Growth, Except for Tesla's Sales - Improved Growth in EU New Car Market, Except for Tesla, Experiences Slower Progress in Electric Vehicles
The EU's new electric vehicle (EV) market has experienced a robust 25.0% increase over the previous year, making a remarkable comeback. Hybrid vehicles haven't been left behind, either, with a growth of about 18%. Unfortunately, petrol and diesel models are struggling, recording losses of 18.6% and 27.6% respectively.
In the month of May, hybrid vehicles maintained their leading position with a market share of 35.1%. When combined with plug-in hybrids, they surpassed the combined market share of petrol and diesel vehicles, which stood at 38.1%. Pure electric vehicles accounted for a notable 15.4% of new cars.
According to automotive analyst Constantin Gall from EY, "The market is gradually evolving, and electromobility is moving ahead, although the rise in EV sales is slower than both politics and the industry anticipated." As the EU has ambitious, though time-stretched, emission targets, vehicle manufacturers are under considerable pressure to sell more EVs.
However, Tesla, founded by tech billionaire Elon Musk, has once again announced a substantial drop in sales. The company sold approximately 40.5% fewer vehicles in the European Union in May compared to the previous year. Between January and May, Tesla sales in the EU have decreased by a staggering 45.2%.
Automotive consulting firm EY concludes that overall, the new car market is showing a lackluster development. "Demand for new cars remains low across Europe, and the market is devoid of substantial growth dynamics," stated Gall. "Sales volumes are scarce, putting immense pressure on the industry."
[Enrichment Insight]- European countries with high EV growth: Germany, Belgium, and the Netherlands.- Chinese automaker SAIC Motor is gaining popularity in the EU market with a 49.1% sales increase, overshadowing Tesla's performance.- Factors contributing to this growth in EVs may include regulatory measures, consumer preferences, and increased competition.- Tesla's sales decline could be due to factors like competition, model availability, pricing, and shifts in consumer preferences.- Despite the growth in BEVs, overall EU car market contracted slightly in early 2025, reflecting broader economic and consumer trends.
- Despite Tesla's drop in sales, the EU's new electric vehicle (EV) market has shown a significant 25.0% increase, with hybrid vehicles following closely behind.
- In the automotive industry, charger companies and battery manufacturers are experiencing a surge in demand due to the rise in EV sales, reflecting a broader shift towards a more sustainable transportation lifestyle.
- With ambitious emission targets in the EU, vehicle manufacturers are under pressure to sell more electric vehicles, creating a competitive environment in the automotive industry.
- However, the overall new car market in Europe shows a lackluster development, with demand remaining low and sales volumes scarce, putting immense pressure on the industry, regardless of the growth in electric vehicles.
