American EV giant Tesla delivered another strong result in Germany with a year-on-year sales growth of 912.2% to 4,241 in January 2023, per the Federal Motor Vehicle Administration (KBA).
Based on the data released on February 3, Tesla recorded the highest YoY sales increase against its rivals, representing 2.4% of the market. In contrast, the German auto industry showed sluggish performance last month, and sales fell compared to the previous year.
Tesla overcomes the weak trend in Germany’s auto market
It is worth noting that the German auto market often has a dismal first month of the year. Sad to say, it has demonstrated even more instability this year, with sales falling to 179,247 vehicles (down 2.6% YoY), per KBA’s statistics.
That said, the German auto market deteriorated even more in January. Remarkably, Tesla was the only automaker to overcome the weak trend in the country.
As mentioned above, Tesla recorded car registrations of 4,241 vehicles (up 912.2% YoY). Notably, Tesla’s growth has been crucial in sustaining the EV sector, which has seen a sharp sales drop. For context, Germany reported BEV registrations of 18,136 vehicles. Of that total, Tesla accounted for 23.4% market share.
The decline in Germany’s EV sales was primarily caused by the fact that the federal government has drastically curtailed the 2023 environmental incentive for buyers. In fact, the country’s plug-in hybrid sales decreased 53.2% from January 2022, while BEV sales dipped 13.2%.
Meanwhile, the rapid growth in Tesla’s German EV sales may be significantly influenced by the major price cuts on its popular model in mid-January.
As stated by CEO Elon Musk during the company’s Q4 and FY 2022 financial results and Q&A webcast, “price really matters,” particularly in enticing customers to buy the product in a rapidly changing market.
