Tesla’s electric vehicle dominance in Europe appears to be facing headwinds. New Tesla vehicle registrations in the European Union (EU) during the first eight months of 2024 saw a 15% drop compared to the same period last year. This decline mirrors a broader slowdown in electric vehicle (EV) demand across the region.
According to data released by the European Automobile Manufacturers Association (ACEA), only 152,607 new Tesla vehicles were registered in the EU through August. This number pales in comparison to the 179,363 registrations recorded during the same period in 2023.
While Tesla struggles, not all automakers are experiencing similar setbacks. Volvo Cars, majority-owned by China’s Geely, witnessed a substantial 38% increase in new car registrations, reaching 192,365 units. Similarly, Chinese state-owned SAIC Motor saw an 18% growth in registrations, totaling 102,924 units.
On the other hand, Ford Motor Co, based in Dearborn, is also grappling with challenges in the EU market. New vehicle registrations for Ford dropped 16% to 210,351 units in the eight months ending August.
The picture isn’t entirely bleak for all automakers. Japanese automaker Toyota Motor experienced an 18% surge in registrations this year through the end of August, reaching 571,574 units.
Despite Toyota’s growth, other industry giants like Stellantis and Hyundai saw their registrations dip by 3.2% and 4.3%, respectively. Meanwhile, German automaker Volkswagen continues to dominate the EU market, registering 1.9 million new vehicles in the first eight months of 2024, a 1.6% increase compared to the same period last year.
While overall new car registrations in the EU climbed 1.4% to 7.2 million units by the end of August, the EV segment experienced a dip. Battery electric vehicle registrations fell by 8.3%, while diesel vehicle registrations dropped 9.7%.
The ACEA has attributed the decline in EV market share to several factors, including a lack of charging infrastructure and the competitive nature of the manufacturing landscape. They also expressed concern that the current emission regulations are not conducive to the rapid transition to a zero-emission future, particularly in light of the evolving geopolitical and economic landscape.
Looking ahead, the ACEA has raised alarm bells about the 2025 CO2 emission targets, warning that they could lead to multi-billion euro fines, production cuts, and job losses. The organization is calling for a comprehensive review of the CO2 regulations for both light-duty and heavy-duty vehicles to ensure a smoother transition to zero emissions and safeguard the European automotive industry’s future.
To address these concerns, the ACEA is advocating for a package of short-term relief measures for the 2025 CO2 targets, along with a comprehensive review of the regulations and targeted secondary legislation. They believe these steps are crucial for securing a successful zero-emission transition and maintaining Europe’s industrial leadership in the automotive sector.
