Tesla, the electric vehicle giant steered by Elon Musk, has relinquished its global sales crown to Volkswagen Group in January, excluding China, as it grapples with a steep decline in European sales.
According to a report by SNE Research, a prominent energy market research firm, the global electric vehicle (EV) market, encompassing plug-in hybrids, witnessed a 16.4% surge in registrations outside of China, reaching 463,000 units in January.
In a surprising turn of events, Volkswagen Group seized the top position, selling a remarkable 82,000 units, a staggering 68.5% increase compared to the previous year. This feat propelled them past Tesla, which recorded 57,000 units.
Volkswagen's surge can be attributed to the robust performance of its EV lineup built on the dedicated MEB platform, including popular models like the ID.3, ID.4, ID.7, and Q4 e-Tron.
Conversely, Tesla experienced a 14.7% drop in sales compared to the same period last year. The company's performance was particularly lackluster in key markets, with a significant 45.9% decline in Europe and a 2.1% decrease in North America.
Analysts suggest that Musk's growing political involvement in Europe, including his support for far-right parties, may have contributed to the sales slump. This comes amidst his increasing alignment with former US President Donald Trump.
Furthermore, concerns have been raised about potential inventory shortages stemming from Tesla's aggressive sales push towards the end of the previous year.
Hyundai Motor Group secured the third spot, selling approximately 37,000 units, marking an 8.4% growth compared to the previous year.
Regionally, Europe emerged as the fastest-growing market, with a 20.5% increase, capturing 53.7% of the global market share. North America saw a 10.9% growth, accounting for 10.5% of the market, while Asia (excluding China) registered a 9.2% growth, holding a 13.5% share.
SNE Research highlighted the ongoing transformation of the European market towards electric vehicles, driven by stricter carbon emission regulations. In North America, the Inflation Reduction Act (IRA) continues to fuel EV adoption, but the potential for policy shifts under a second Trump administration is casting a shadow of uncertainty over the market.
[Copyright (c) Global Economic Times. All Rights Reserved.]
