European Car Sales Edge Down in April as Tesla’s 49% Slump Slows EV Momentum

Tesla's sales in Europe decreased by 49 per cent in April compared to the previous year, despite a 27.8 per cent increase in battery-electric sales, as the U.S. EV manufacturer's upgrade of its Model Y appears to do little to enhance the brand's damaged reputation in the area. In general, car sales in the area stayed almost stable compared to the previous year, decreasing slightly by 0.3 per cent, with the most notable sales increase seen in electric and plug-in hybrid vehicles, according to statistics from the European Automobile Manufacturers Association (ACEA). Tesla's sales in Europe keep declining, indicating a movement away from the brand due to increasing Chinese competition and some backlash against Elon Musk's political opinions.

European automakers aim to reduce local expenses and address competition in light of U.S. tariffs on vehicle imports and a decelerating global economy, as uncertainty looms over the industry's future even with alleviated U.S.-China trade conflicts. Sales in April within the European Union, the UK, and the European Free Trade Association (EFTA) decreased to 1.07 million vehicles, after a 2.8 per cent increase in the previous month, according to ACEA data. SAIC Motor, a Chinese state-owned automaker, and Mitsubishi saw increases of 24.5 per cent and 22.1 per cent in registrations, respectively, while Mazda experienced a decline of 24.5 per cent. Tesla's sales declined for the fourth consecutive month, dropping 49 per cent year-over-year, and its portion of the overall market nearly halved to 0.7 per cent from 1.3 per cent last year.

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Within the EU alone – excluding Britain and the EFTA – overall car sales decreased by 1.2 per cent year-over-year, marking the fourth month of decline, while the registrations of battery electric (BEV), plug-in hybrid (PHEV), and hybrid electric (HEV) vehicles increased by 26.4 per cent, 7.8 per cent, and 20.8 per cent respectively. In April, electrified vehicles—including BEV, HEV, or PHEV—represented 59.2 per cent of passenger car registrations in the bloc, an increase from last year's 47.7 per cent. In the largest EU markets, overall car sales in Spain and Italy rose by 7.1  per cent and 2.7  per cent, respectively, whereas in France and Germany, they fell by 5.6  per cent and 0.2  per cent. In Britain, the number of registrations fell by 10.4  per cent. Rising enthusiasm for Europe's EV market, fueled by emission goals and more affordable models, contrasts with worldwide policies promoting EVs amidst trade conflicts, decelerating markets, and possible factory shutdowns and job reductions.