Tesla is no longer the top-selling car brand in Western Europe, according to a report released Wednesday by InsideEVs. While sales growth at other electric car makers has been relatively slow compared with Tesla’s surge from January 2019 and the subsequent flatness, the slow and steady path appears to have paid off for Renault-Nissan-Mitsubishi Alliance and Volkswagen Group, both of which have outstripped Tesla by August 2019.
The trend continues, with industry analyst Mattias Schmidt saying Tesla’s market share in Western Europe, which includes the EU plus the UK, Iceland, Norway and Switzerland, has fallen from 33.8 per cent to just 13.5 per cent over the past year. That’s a huge drop, but why did Tesla lose its momentum?
Part of the reason is that Tesla is a single brand and multi-brand group. Second, Tesla doesn’t really sell ultra-affordable electric cars, and competitors have more entry-level electric cars to choose from, even though they offer far less range or performance than the Model 3.
Finally, many of these competing companies are likely to be willing to sell electric cars at smaller margins to meet their emissions targets. They can use sales of electric cars to support emissions. What does this mean for the long term? That’s hard to say, but Tesla’s German plant is likely to help make vehicles sold in Western Europe more affordable, at least to some extent. And once Model Y available in Europe sometime in 2021, it could be of great help.