European Car Sales Climb in March, While Tesla Sees 28.2% Drop

Tesla's (TSLA.O) new vehicle sales in Europe fell by 28.2 per cent in March compared to the same month last year, despite a 23.6 per cent increase in overall battery electric vehicle sales for that month, as reported by the European Automobile Manufacturers Association (ACEA). Total new vehicle sales in Europe increased by 2.8 per cent this month, driven by significant growth in Britain and Spain, as electric vehicle gains compensated for declines in petrol and diesel cars, according to the data. Tesla's decline in sales in Europe contributes to indications that consumers are avoiding Elon Musk's electric vehicle brand as competition from China intensifies, and some oppose his political beliefs.

European automakers are facing competition from China while struggling to reduce high expenses in domestic markets. Now, they are dealing with the implications of U.S. President Donald Trump's 25 per cent tariffs on vehicle imports, complicating the industry's future. Trump's 145 per cent tariffs on imports from China, along with Beijing's counter-tariffs, have contributed to decreased global growth projections, increasing risks for automotive firms. According to ACEA data, March vehicle sales in the European Union, Britain, and the European Free Trade Association increased to 1.42 million cars, following a two-month decline. While Stellantis experienced a decrease of 5.9 per cent, Volkswagen and Renault saw rises in registrations by 10.3 per cent and 13.0 per cent.

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Tesla's sales dropped for the third consecutive month, decreasing 28.2 per cent compared to the previous year, and its market share decreased to 2 per cent from 2.9 per cent last year. In the EU, overall car sales decreased by 0.2 per cent compared to the previous year, marking a third consecutive month of decline, while registrations of battery electric (BEV), hybrid electric (HEV), and plug-in hybrid (PHEV) vehicles rose by 17.1 per cent, 23.9 per cent, and 12.4 per cent respectively. Electrified vehicles - BEV, HEV, or PHEV - in the bloc made up 59.2 per cent of passenger car registrations in March, rising from 49.1 per cent the year before. In the largest EU markets, sales rose 23.2 per cent in Spain and 6.3 per cent in Italy, whereas they fell by 14.5 per cent in France and 3.9 per cent in Germany. In Britain, there was a 12.4 per cent increase in registrations.