Tesla sales down 30% across Europe, but brand downturn slows

Tesla sales dropped by 30% across Europe to 27,828 units in March, but the decline is starting to slow, according to new data from JATO Dynamics.

This was the most significant decline among the 30 most registered brands, surpassed only by Mitsubishi in 33rd position (down by 43%), Lancia in 41st position (down 73%), Jaguar ( down 82%), Smart (down 65%), Maserati (down 39%) and  Abarth ( down 75%). 

Despite the negative trend, the 30% drop experienced in  March was less severe than those recorded in January ( a drop of 47%) and February (down 44%).

Felipe Munoz, global analyst at JATO Dynamics, said: “As Tesla continues to deal with a host of PR issues in addition to the changeover of the Model Y, Tesla is now relying on the Model 3 to offset its losses."

The midsize saloon recorded an increase of 1.1% to reach 12,500 units, topping the BEV ranking alongside the Model Y.   

While the Model Y ( droped by 49%) and Model 3 (dropped by 14%) both recorded notable declines between January and March, they were still able  to outpace all other electric cars in Europe.

The Volkswagen ID.4 followed in third position thanks to an outstanding 115% increase in registrations but remained 2,000 units short of the Model 3. 

Tesla is still performing

“Despite the controversy surrounding the brand’s CEO and the limited availability of the new Model Y, Tesla continues to perform well as the most popular EV brand in Europe.

"Its success, amid these challenges, provides an indication of what European consumers are looking for in an EV”, Munoz continued. 

March delivered Europe’s second-best month on record for battery electric vehicle (BEV) registrations, while Tesla led the BEV ranking by model despite a continued fall in volumes.

The UK was the main driver of growth as the largest market during the month, with volumes up by 13%. Increases were also recorded in Italy and Spain, while Germany and France both experienced declines, with drops of 3.9% and 15% respectively. 

Munoz said: "March was a momentous month for BEV registrations in Europe, indicating that the positive response we are seeing to the continually broadening offer is finally having a real impact on the overall market.”

JATO Dynamics data for 28 markets across the region shows that a total of 240,891 battery electric vehicles (BEVs) were  registered in March.

This marks the second highest result on record for this powertrain, behind December 2022 when  registrations reached 275,108 units.

The Peugeot 208 takes the leadership  

In March, the Dacia Sandero lost its title as Europe’s most registered new car to its rival from Stellantis, the Peugeot 208.

Despite the change in leadership, the Sandero continued to lead over the quarter, with the 208 following in second place. 

Among the top 10, the Volkswagen Tiguan saw a 42% increase in registrations.

Other standout performers included  the MG ZS, the success of which was  driven by the launch of its new  generation – now available exclusively as a full hybrid, rather than an electric model.

Munoz commented: “The initial success of the MG ZS is an example of how Chinese manufacturers are adjusting their strategies in response to EU tariffs on Chinese electric vehicles.”