American automaker Tesla has once again demonstrated its strong presence in the European automotive market, recording an unbeatable market share of 2.63% in May.
JATO Dynamics recently reported the total number of new vehicle registrations in 28 European nations, showcasing the industry’s progress. According to the data, new vehicle registrations hit 1,116,472 units in May. That figure indicates a remarkable growth of 18% from just 943,435 units in the same period last year. It also raised the year-to-date figure to a whopping 5.3 million units, representing a substantial 17% YoY growth.
Tesla advances as Europe’s largest market share winner
Tesla enjoyed significant growth in Europe over the previous year. In hindsight, the EV giant only had a 0.15% market share in May 2022, mainly due to the global supply issues that affected the company’s production.
In a significant development, Tesla’s market share jumped to 2.63% this year, registering nearly 29,400 electric vehicles in May. Notably, this result demonstrates a remarkable improvement from the following past years:
· May 2021: 8,810 units
· May 2020: 2,757 units
· May 2019: 4,087 units
JATO Dynamics’ Global Analyst suggested that Tesla’s substantial growth in the European market is significantly due to its pricing strategies that really made its luxury EVs more affordable for customers.
“By making use of incentives and good market position, Tesla has been able to outperform its rivals, while part of the brand’s success is also explained by continuous price cuts.”
Felipe Munoz, JATO Dynamics’ Global Analyst
Tesla dominates the BEV market in May 2023
As per JATO Dynamics’ data, battery electric vehicle registrations reached 169,091 units in May alone, which accounted for 15% of the overall market.
As expected, Tesla held a substantial market share of 17.4% in May, raising its YTD figure to 18.9%. It is worth noting that Tesla’s YTD market share result indicated a remarkable YoY growth of 6.7 percentage points from just 12.2% in May 2022.
In that sense, Tesla ultimately beat the competition by a notable margin. Chinese state-owned brand SAIC followed Tesla with its 2.8-point market share growth. German automaker Volkswagen Group demonstrated a 2.7-point market share increase, placing it in third.
Unfortunately, some brands performed poorly in the BEV segment, including South Korea’s Hyundai-Kia, with a 5.6-point market share decline. Stellantis also suffered the same fate, reporting a 3.4-point drop in market share.
Tesla Model Y leads the pack
Tesla Model Y was the best-selling vehicle globally in May. That said, it is unsurprising that it also dominated the European rankings from January to May.
According to the data, the electric SUV had 21,530 registrations in May alone. It is worth noting that this strong performance can partly be due to the company’s referral program, which attracted more customers toward buying Tesla cars.
Apart from that, Tesla also provided significant price cuts and incentives, which turned out to be effective in attracting European buyers.
“The popularity of the Tesla Model Y has been confirmed in Europe, and it has a good chance of leading both the European market and the global ranking of models by the end of the year.”
Felipe Munoz, JATO Dynamics’ Global Analyst
On the other hand, the famous Volkswagen ID. 4 ranked second with 8,543 registrations (+103%). British-Chinese brand MG 4 secured the third spot with 6,310 units, surpassing the Volkswagen ID.3 in the 6th spot with 5,529 registrations.
The Tesla Model 3 landed fourth spot with 6,204 registrations, followed by the Fiat 500 with 6,073 units.
Below are the top 20 BEV models:
| Top 20 BEV | Registrations |
| 1 TESLA MODEL Y | 21530 |
| 2 VOLKSWAGEN ID.4 | 8543 |
| 3 MG 4 | 6310 |
| 4 TESLA MODEL 3 | 6204 |
| 5 FIAT 500 | 6073 |
| 6 VOLKSWAGEN ID.3 | 5529 |
| 7 VOLVO XC40 | 5415 |
| 8 SKODA ENYAQ | 5015 |
| 9 BMW I4 | 4545 |
| 10 BMW IX1 | 4089 |
| 11 AUDI Q4 | 4044 |
| 12 PEUGEOT 208 | 4036 |
| 13 POLESTAR 2 | 3710 |
| 14 DACIA SPRING | 3607 |
| 15 RENAULT MEGANE | 3324 |
| 16 OPEL/VAUXHALL CORSA | 3322 |
| 17 MERCEDES EQA | 3299 |
| 18 CUPRA BORN | 3191 |
| 19 HYUNDAI KONA | 3131 |
| 20 OPEL/VAUXHALL MOKKA | 3026 |
Despite this significant development, Europe remains struggling to revive the EV industry from the adverse impact of the COVID-19 pandemic.
“While BEVs and SUVs continue to drive the recovery of the industry, growth across all segments has not been enough to bring total volume back to pre-pandemic levels.”
Felipe Munoz, JATO Dynamics’ Global Analyst
Factors affecting Tesla’s growth in Europe
Tesla’s stable growth in the European auto industry persisted regardless of the challenges it faced, including the global semiconductor shortage issues.
The American brand did not wane but effectively employed contingencies to alleviate supply. Apart from that, the following factors might have also fueled the company’s notable market share growth in the region:
· vast Supercharger network
· over-the-air (OTA) capability
· innovative tech features (Autopilot and FSD)
· high safety ratings
See Also:
· Tesla Model Y receives Residual Value Award in European BEV SUV category
· Tesla achieves more balanced monthly sales in Europe, caution urged to avoid misinterpretation
· Tesla maintains its dominance in both European and US electric car markets for January 2023
· Tesla rolls out FSD Beta in Europe and Australia
· Tesla relaunches famous referral program in Europe to boost Q1 sales
Europe indeed has the potential to establish a strong and competitive electric vehicle industry owing to its stringent vehicle emission standards and ambitious carbon-neutrality goals. Apart from these, Tesla has also been very helpful in boosting the region’s EV adoption with its innovative cars.
