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Tesla's February Market Share In Europe Drops Despite EV Pickup

BNE News Desk , March 26, 2025
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Tesla's (TSLA.O) market share in Europe continued to decrease year-over-year in February, data revealed on Tuesday, as the sales of the all-electric car manufacturer fell for the second month in a row, even with increasing overall EV registrations in the region. As competition increases, and before the introduction of its new Model Y mid-size SUV, Elon Musk's battery-electric vehicle (BEV) company has experienced a 42.6 per cent decline in car sales in Europe this year, according to data from the European Automobile Manufacturers Association (ACEA). In February, Tesla held 1.8 per cent of the overall market and 10.3 per cent of the BEV market, a decline from 2.8 per cent and 21.6  per cent the previous year, respectively. It sold under 17,000 vehicles in the European Union, Britain, and European Free Trade Association nations, whereas more than 28,000 were sold in the corresponding month of 2024.

Tesla is presently dealing with several difficulties in Europe. The electric vehicle manufacturer has an older, limited selection as conventional car competitors and fresh Chinese entrants persist in releasing new, frequently more affordable electric models. Musk, the CEO of the company, has sparked controversy by engaging with far-right parties in Europe, contributing to Tesla's decline in sales.

Tesla Sales Decline in Europe

In general, BEV sales in those markets increased by 26.1 per cent compared to February 2024, despite an overall decrease in car sales by 3.1 per cent, as reported by the ACEA. A filing from the EU revealed last week that Tesla created a pool to offer carbon credits to over six automakers as they attempt to meet European CO2 emission goals that started in January.

Though based on 2024 data, analysts suggest that Tesla's sales could more than compensate for the emissions from other automakers. However, this balance could shift if Tesla's sales continue to decline. The European Union initially set emission targets to accelerate EV adoption across the bloc but is expected to approve a relaxation of those rules on Tuesday, allowing a three-year average for fleet emissions. Despite a 3.4 per cent drop in total new car registrations across the EU in February, battery electric vehicle (BEV) sales surged by 23.7 per cent, marking a second consecutive month of growth, while hybrid electric vehicle (HEV) sales increased by 19 per cent.

Overall, electrified vehicles—including BEVs, HEVs, and plug-in hybrid electric vehicles (PHEVs)—accounted for 58.4 per cent of total passenger car registrations, up from 48.2 per cent a year earlier. “2025 has started on a very strong note for the electric vehicle market in Europe,” said Chris Heron, secretary-general of E-Mobility Europe, in a statement to Reuters.

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“We are beginning to see the early impact of manufacturers’ strategies to comply with the EU’s planned CO2 regulations,” he added.

Among leading brands in Europe, Volkswagen (VOWG.DE) and Renault (RENA.PA) saw sales increases of 4 per cent and 10.8 per cent, respectively, in February across the EU, Britain, and European Free Trade Association countries, whereas Stellantis' (STLAM.MI) sales declined by 16.2 per cent. Sales at SAIC Motor (600104.SS) increased by 26.1 per cent despite the effects of EU tariffs on Chinese-manufactured EVs, while they fell by 15 per cent at Geely-owned (GEELY.UL) Volvo (VOLVb.ST). The market share of brands excluded from the ACEA, such as BYD (002594.SZ), opened a new tab and other Chinese automakers increased to 2.5 per cent from 1.5 per cent the previous year. In Spain, total car sales increased by 11 per cent compared to the same month last year, whereas major markets saw declines, with registrations decreasing by 6.4 per cent in Germany, 6.2 per cent in Italy, and 0.7 per cent in France.