Tesla Lost Market Share In Europe In The First Half Of 2022
Jul 29,2022 | Chloe Lacour
The European market fell by 14% in the first half of 2022 compared to the same period of 2021.
The European new car market continued to experience difficult times in the first half of this year. The latest data released by JATO Dynamics indicates that new car registrations fell by 14% compared to the same period of 2021, to 5.54 million units in 27 European nations.
This is quite different from the positive variation seen in China (+3.4%) but better than the results in the United States, where the market plunged by 18.2%.
Among the safe havens that have avoided a further fall are SUVs and electric cars. The former recorded a moderate decline of only 4%, accounting for almost 50% of the volume. The latter did much better, with their registrations rising from 485,000 units in the first half of 2021 to 633,200 units in the first half of 2022, an increase of 31%. This means that EVs (electric cars) now account for 11.4% of the total market, almost four points more than their market share a year earlier.
Tesla's growth is slowing
The growing demand for electric vehicles has not benefited all automakers equally. Tesla, for example, has not been able to take advantage of this growth, and although it has registered more cars than ever, its growth has lagged behind that of the overall market. Faced with issues with the availability of new cars due to the shutdown of production at its Chinese factory, the Silicon Valley company saw its market share in the EV market decline by 13.75% in the first half of 2021 to 13.33% in the first half of 2022.
This loss of 0.42 points places Tesla in third place among the equipment manufacturers that have lost the most market share over the period, just behind the Volkswagen group, which lost 5.7 points, and the Nissan group, which lost 1. 4 points. Tesla was hit hard by a massive drop in Model 3 registrations during June (-76%), a month usually very strong in terms of volume.
While the brand moves towards full utilization of its new factory in Berlin, it still depends on products from its overseas factories. However, other reasons explain the slowdown in its growth in Europe.
Stronger competition than ever
The Model 3 now faces greater competition, not only outside but also inside the country. The BMW i4 and Polestar 2 are two direct rivals that continued to gain traction in June. Also, as happened in the United States and China, the Tesla Model Y has become a serious and more attractive alternative. In fact, the Model Y was the most registered electric vehicle in Europe in the first six months of this year.
The race for electrification involves almost all brands available in Europe. The BMW Group, for example, is the fastest growing manufacturer in this segment, with its market share increasing from 5.76% in the first half of 2021 to 8.37% a year later. Its latest products, such as the iX, iX3, and i4, are receiving a positive response from the public.
The Korean Hyundai-Kia is also growing faster than its rivals thanks to the good results posted by the Hyundai Ioniq 5 and the Kia EV6, in addition to the good position of the Hyundai Kona and the Kia Niro. Hyundai-Kia has correctly positioned itself as a serious EV manufacturer with interesting products and competitive prices.
Stellaris is also a winner during this period. It has consolidated its position as the second seller of EVs in Europe, just behind the Volkswagen group. This is possible thanks to the very good results of the Fiat 500, the third most registered pure electric car in Europe over the period. It seems that the iconic Fiat is repeating the formula for the success of the internal combustion engine version: attractive design, easy driving, and inexpensive maintenance.