American electric car manufacturer Tesla saw a sharp year-on-year decline in sales in major European markets in November. This is despite the launch of new versions of its best-selling Model Y, according to Reuters. The company has been struggling with a decline in market share in Europe since the beginning of the year. However, billionaire Elon Musk’s carmaker saw an increase in new car registrations in Norway and Italy.
Tesla is losing ground in Europe
Tesla’s overall share of the European market fell to 1.6 percent in the period from January to October, down from 2.4 percent a year earlier. In France, the number of new registrations fell by 58 percent to 1,593 vehicles. In Sweden, sales were down 59 percent year-on-year, with Tesla selling 1,466 vehicles there. In Denmark, new Tesla registrations fell by 49 percent, in the Netherlands by 44 percent to 1,627 vehicles, in Portugal by 47 percent to 425 vehicles, and in Spain by nine percent to 1,523 vehicles.
In Norway, however, Tesla nearly tripled its sales year-on-year to 6,215 vehicles last month. It thus surpassed its annual sales record a year ahead of schedule. At the beginning of the year, the brand was still struggling in this Northern European country, where it has long been the most popular. In February, its sales fell by 48 percent year-on-year, but after the launch of new models, the company managed to reverse the trend. Registrations also rose in Italy, by 58 percent to 1,281, but remain 28 percent lower than at the beginning of the year.
Chinese automakers are growing stronger
The American company faces competition primarily from Chinese automakers, which are aggressively launching new models and intensifying their efforts to penetrate the European market. BYD is at the forefront of these efforts. In the last two years, it has opened showrooms across the continent and launched its cars at competitive prices, according to CNBC.
At the beginning of the year, the British economic daily Financial Times noted that the decline in Tesla sales across Europe came at the same time that Musk became involved in the election campaign in Germany to support the Alternative for Germany (AfD) party, which is considered far-right. The brand’s reputation has also been damaged by his provocative statements, involvement in American politics, and relations with the administration of President Donald Trump.
Source: Reuters
