New data reveals a significant downturn for Tesla in the European market. According to a recent report by a trade group, Tesla’s EU sales plummeted by 52% in April.
Electric Vehicle Market Dynamics Shifting
While the overall electric vehicle (EV) market in the European Union saw growth, Tesla experienced a considerable decline. The European Automobile Manufacturers’ Association (ACEA) reported that Tesla’s sales volume decreased to 5,475 units in April, a stark contrast from the same period last year. Year-to-date figures also reflect this downward trend, with a 46.1% decrease, totaling 41,677 cars sold in the first four months of 2025.
Competition Heats Up
Tesla, once the dominant force in the EV sector, has now been surpassed by several competitors, including Volkswagen, BMW, Renault, and Chinese manufacturer BYD, as highlighted by JATO Dynamics consultants. This shift indicates an increasingly competitive landscape in the European EV market.
Possible Factors Contributing to the Decline
Several factors may be contributing to Tesla’s sales slump. The company cited production losses due to upgrades to its Model Y line in April. Furthermore, increased competition from both established automakers and emerging Chinese brands is impacting Tesla’s market share.
Hybrid Vehicles Maintain Popularity
Despite the growing EV market, hybrid vehicles continue to hold a strong position in Europe. Sales of hybrid cars with smaller electric batteries have increased by 20.8% since the beginning of the year. Conversely, sales of petrol-only cars have dropped by 20.6% during the same period. Volkswagen Group remains the top-selling brand overall in Europe, with a 2.9% sales increase in April.
Chinese Brands Gain Ground
Chinese automotive brands are making significant inroads into the European market, particularly in the electric and hybrid segments. Brands such as BYD, MG, Xpeng, and Leapmotor have witnessed a combined sales surge of 59% year-over-year in the electric and hybrid categories. Their collective market share now stands at 7.9%.
Looking Ahead: Potential Tariffs on Chinese Hybrids?
The European Union is considering imposing tariffs on Chinese hybrid cars, similar to those already in place for electric vehicles. According to JATO expert Felipe Munoz, the potential impact of these tariffs on the market remains to be seen.
Source: AFP
Keywords: Tesla, EU sales, electric vehicles, hybrid vehicles, automotive industry, European market, Chinese brands, BYD, Volkswagen, ACEA, JATO Dynamics