American electric automaker Tesla continues to dominate the European electric vehicle market, surpassing its close competitors and solidifying its position as a market leader.
JATO Dynamics’ latest data revealed that new vehicle registrations for 28 European markets reached a total of 1,116,472 units in May 2023, marking an impressive 18% year-on-year increase from just 943,435 units in May 2022. Notably, this result brings the year-to-date total to 5.3 million units, representing a substantial 17% YoY growth.
Tesla managed to attract a growing number of European consumers with an unbeatable 2.63% market share, boosting the overall automotive market in the continent.
Tesla’s market share sees exponential growth
Tesla’s market share in the European market has enjoyed notable growth over the past year. In May 2022, the EV giant held a mere 0.15% market share, primarily due to supply issues that led to a drop in registrations. However, in May 2023, Tesla’s market share soared to 2.63%, capturing consumers’ attention and leaving competitors in the dust.
For context, Tesla registered nearly 29,400 units in May, demonstrating impressive growth compared to the previous years:
- May 2021: 8,810 units
- May 2020: 2,757 units
- May 2019: 4,087 units
JATO Dynamics’ Global Analyst noted that the American brand’s rapid growth is attributed to its strategic use of incentives and market positioning, coupled with continuous price cuts.
“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’s triumph in the BEV segment
Europe recorded a 65% YoY growth in its battery electric vehicle registrations to 169,091 units, representing 15% of all new registrations in May.
Unsurprisingly, Tesla’s market share in the BEV category reached 17.4% in May and an impressive 18.9% year-to-date.
Remarkably, Tesla’s YTD market share result represents a substantial increase from the 12.2% held in the same period last year. This 6.7-point growth margin surpassed other major brands, with SAIC coming in second with a 2.8-point increase in market share. Meanwhile, Volkswagen Group obtained a 2.7-point market share increase in May.
However, not all major players fared well in the segment, as Hyundai-Kia lost 5.6 points of share, followed by Stellantis, which experienced a 3.4-point decrease.
Tesla’s Model Y leading the pack
Tesla’s Model Y advanced as Europe’s top-selling vehicle from January to May, further solidifying the brand’s presence in the region. 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. In May alone, the model registered 21,530 units.
The popular Model Y, combined with strategic incentives and a strong market presence, has allowed Tesla to outperform its rivals consistently.
“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 recent success of the MG 4 also shook up the BEV ranking, securing a record third position with 6,310 units. It surpassed the Volkswagen ID.3 with 5,529 units. Likewise, the Volkswagen ID.4 also performed exceptionally well, registering 8,543 units (+103%), making it the second most popular BEV of the month.
Other models, such as the Volvo XC40 BEV (+329%), BMW i4 (+123%), and BMW iX1, also entered the top BEV ranking in May.
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 |
However, it must be noted that Europe is still struggling to revive the industry from the adverse effects 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
What propels Tesla’s success in the European market?
Tesla’s growth in Europe stands out, particularly amid the challenges posed by global shortages of semiconductors and other components.
The Musk-led automaker showcased its adaptability despite initial production disruptions by swiftly implementing contingencies and alternative supply strategies. This agility in supply chain management and continuous efficiency improvements have given Tesla a distinct competitive advantage in the EV industry, further solidifying its leadership position.
The following factors might have also driven Tesla’s success in the European market:
- 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
Looking ahead, the future of the European electric vehicle market seems brighter than ever, with the trend toward sustainability gaining momentum. Tesla’s unwavering dominance in this rapidly evolving industry sets the stage for an electrifying future, with the Model Y leading the charge.
