BMW overtook Tesla to take first place in the European market for electric vehicles

Sales of BMW’s all-electric vehicles in the European Union rose sharply in July, increasing by more than a third to 14,869 units, according to data from Jato Dynamics. At the same time, Tesla sales fell 16% to 14,561 units. While Tesla still holds the lead in electric car sales since the start of the year, it has been gradually losing its European market share to rivals such as BMW and Volvo.

In July 2024, European buyers registered a total of 139,300 new electric vehicles, which is 6% less compared to the same period last year. Demand for electric cars in Europe is declining, especially after countries such as Germany and Sweden reduced or eliminated subsidies for the purchase of electric cars. As a result, some automakers have begun to revise their plans for the production of electric vehicles. For example, Volkswagen – the region’s largest carmaker – said it is reducing production capacity at its plants in Germany and may delay the release of new electric models. Mercedes-Benz is also winding down its electrification plans and battery-related initiatives.

BMW managed to avoid this slump thanks to strong demand for its electric car models, such as the i4 and iX1, which outperformed similar models from Mercedes and Audi. The Tesla Model Y remains the best-selling electric model in Europe in the first half of the year, although demand is falling, which contributed to a 16% drop in sales in July.

Chinese automakers such as BYD and SAIC Motor have gradually expanded their presence in Europe this year, but the threat of EU tariffs has slowed their expansion. To avoid the duty, the Chinese company Dongfeng plans to open its own factory in Europe.