Increase in electric car sales by 46% dominated by Tesla, seeing a 39% sales drop

In a surprising turn of events, Tesla's new registrations in Germany have taken a significant hit, with a 39% drop in August and a staggering 56% decrease in the first eight months of the year. This trend is echoed across several European countries, including France, Belgium, Denmark, and Sweden.

In August 2021 alone, Tesla registered a 39.2% decrease in registrations compared to the same month in 2020, with 1,441 units. This figure represents a notable decrease from the 2,308 units registered in August 2020.

However, Norway was an exception to this trend, with registrations of Tesla vehicles increasing by 21% in August and by 26% since the beginning of the year.

The battery-electric vehicle (BEV) market in Europe has shown robust growth, expanding by 26% in the first seven months of the year. Yet, Tesla's sales have fallen by 40% during the same period.

The weakness in Europe and China could dampen the effect of potential increased sales due to US consumers rushing to buy before tax credits expire. This is particularly concerning for Tesla, as it has seen a significant drop in sales and has lost market share in important electric vehicle markets.

Meanwhile, traditional automakers like Volkswagen, Mercedes, and BMW have shown strong growth in new registrations. Volkswagen, in particular, has increased its BEV market share to 21.1%, while Tesla’s share has declined significantly to 3.6%. Volkswagen's growth is supported by an expanded vehicle lineup in entry-level segments, contributing to a 38.4% rise in electric car registrations in the first half of the year versus the previous year.

Elsewhere in the market, other manufacturers are also making strides. For instance, BYD increased its registrations by 411% in August 2021 compared to the same month in 2020, with 1,114 units. Similarly, MG Roewe increased by 260% to 2,140 cars in August 2021.

The strong growth in the BEV market is evident, with electric cars now accounting for 19% of the car market in Germany. In August 2021, there were 39,367 registrations, a 45.7% increase compared to the same month in 2020.

Even in countries where Tesla's sales have slumped, the overall trend for electric vehicles remains positive. For instance, Xpeng increased by 757% to 283 units in August 2021.

Worldwide, Tesla's vehicle deliveries fell by 13% in the first half of the year, indicating a second consecutive decline. As the market for electric vehicles continues to grow, it will be interesting to see how Tesla navigates this challenging period.

Increase in electric car sales by 46% dominated by Tesla, seeing a 39% sales drop