Sales of electric cars across Europe are taking a hit, even for some of the most popular models.
According to a recent analysis by Jato Dynamics, electric car sales in the 27 EU countries fell by 6% in July 2024 compared to the same month in 2023. This decline represents a total of 139,000 electric cars sold in July.
Despite holding onto the top spot, Tesla’s Model Y saw a 16% drop in sales. This is significant, considering the massive success Tesla experienced in 2023. Tesla’s decline may indicate just how challenging the market has become for electric vehicles.
Interestingly, the Volvo EX30 is the only car in the top 5 to avoid a sales slump, but this is primarily because it’s a new entry to the market, having not been available in July 2023.
Tesla’s overall dominance is being challenged. BMW has now edged out Tesla in total electric car sales across Europe, although by a slim margin.
Several factors are contributing to this decline.
In many European countries, government subsidies for electric vehicles have been reduced or eliminated altogether. The Netherlands, for instance, has announced plans to partially phase out subsidies by 2025.
Additionally, electric cars produced or owned by Chinese companies are facing new punitive tariffs in Europe. These tariffs, set to become permanent next month, have further strained the market.
While the electric car market boomed in 2023, it seems that momentum is now slowing, and even the biggest brands are feeling the impact.
