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Chinese Electric Vehicle Market Share in Europe Experiences Decline
Sales of Chinese electric vehicles in Europe have decreased to their lowest point in two years. Figures from Dataforce analysts indicate that a mere 6.9% of electric vehicles registered across the continent in February were manufactured in China. This represents a fall from 7.8% recorded in January.
According to the data, this is the most diminished proportion since February 2023. This contraction in sales follows the implementation of import tariffs on Chinese electric vehicles by the European Union last year. The reduced market share in February occurred even as overall electric car sales in Europe increased by a quarter.
Traditional Automakers Benefit from Increased Electric Vehicle Demand
Established automotive brands, including Volkswagen, Renault, and Kia, were primary beneficiaries of the heightened demand for electric cars in February. This surge in sales is partly attributed to the introduction of new electric models by these manufacturers.
Tesla Sales Witness Significant Drop in Key European Markets
New data for February also reveals that Tesla experienced a substantial decrease in car sales in two of its crucial European markets.
Steep Plunge in German Sales
In Germany, Tesla delivered only 1,429 new vehicles in February. This figure represents a sharp 76% decline compared to the same month the previous year, when approximately 6,000 vehicles were delivered.
This downturn follows disappointing results in January, where sales decreased by 59.5% compared to January of the prior year.
Overall, Tesla sales in Germany have fallen by 70% year-to-date, suggesting a considerable shift in consumer preference away from the brand.
Broader European Sales Downturn for Tesla
Across Europe, Tesla sales have generally plummeted, experiencing a roughly 50% decrease compared to the previous year.
Markets most significantly affected by this downturn include France, Norway, Denmark, and Sweden.
Potential Link Between Sales Decline and Musk’s Political Endorsement
The observed sales downturn could be related to Tesla CEO Elon Musk’s controversial public endorsement of the far-right Alternative for Germany (AfD) political party.
Tesla’s chief executive voiced strong backing for the party during recent federal elections in Germany, which provoked significant backlash within the country.
In a post on his social media platform X (formerly Twitter), Musk encouraged German citizens to vote for the far-right party.
He stated, “Only AfD can save Germany, end of story, and people really need to get behind AfD, and otherwise things are going to get very, very much worse in Germany.”
Tesla’s Previous Market Dominance in Germany
Previously, Tesla had enjoyed considerable success in the German market, becoming the top-selling electric car brand in 2022.