Tesla Lags Behind in EU 2025 as EV Sales Outpace Petrol

In December 2022, electric vehicle (EV) sales in Europe surpassed those of petrol-powered vehicles for the first time. This milestone occurred amid relaxed environmental regulations that allowed manufacturers to emit more pollutants. Despite a significant surge in EV sales, Tesla’s performance lagged, with the company facing a considerable drop in global sales.

Growing EV Market in Europe

The latest report from the European Automobile Manufacturer’s Association (ACEA) revealed promising statistics for EVs. Overall auto sales increased by 1.8% compared to the previous year. However, these figures have not yet reached pre-pandemic levels.

December was particularly noteworthy for the EV sector. Battery electric vehicle (BEV) sales rose by 51% compared to December 2021. Plug-in hybrids (PHEVs) experienced a 36.7% increase, while conventional petrol hybrids grew by 5.8%. In contrast, petrol-only car sales fell by 19.2%, and diesel vehicle sales declined by 22.4%.

EVs Surpass Petrol Cars

This remarkable December boom enabled BEVs to outsell petrol-only cars across Europe for the month. This shift marks a significant transition as EV sales continue to climb while petrol sales decline.

• BEVs and PHEVs accounted for one-third of new car registrations.
• Petrul-powered hybrids made up another one-third.

When considering non-EU countries, including the EFTA nations and the UK, the trend was even more pronounced. In December, the UK saw electric vehicles comprising one-third of new car sales, achieving sales figures that aligned with the country’s 2026 targets.

Electric Vehicles Gain Market Share

For 2022 as a whole, BEVs constituted 17.4% of all car sales in the EU, while petrol-only vehicles held 26.6%. This trend indicates a significant year-end surge for electric vehicles, suggesting that while petrol vehicles may briefly outsell EVs, the overall trajectory favors electric models.

Challenges for Established Brands

Despite the overall growth in the EV market, Tesla experienced a stark contrast with a 37.2% decrease in sales, the most significant drop among major brands. This decline is unexpected, considering Tesla’s position as an all-EV manufacturer amid the booming market for electric vehicles.

In contrast, BYD, a competitor from overseas, reported a staggering 228% increase in sales, soaring from 39,000 to 129,000 units. This competitive landscape highlights the challenges that established brands like Tesla face.

Future Outlook for Electric Vehicles

The future of electric vehicles appears promising, driven by a gradual shift towards cleaner energy sources for power generation. By 2025, renewable energy, such as wind and solar, is projected to surpass fossil fuels in electricity production, even in countries with limited sunlight like Germany.

Despite the challenges that some brands are facing, the trend towards electrification is clear. With rising consumer demand for EVs and improving technology, the electric vehicle market is likely to continue its upward trajectory in the coming years.