Tesla’s European EV Sales Decline as Volkswagen, BMW, and Chinese Rivals Gain Ground

Tesla’s dominance in the European electric vehicle (EV) market took a hit in February, as new data from research platform JATO Dynamics—published by Reuters on Monday—revealed a sharp decline in the company’s sales.

Tesla fell behind Volkswagen and the BMW Group in EV sales, while Chinese automakers collectively outperformed the American EV giant in the region.

According to the report, Tesla’s battery-electric vehicle (BEV) registrations in 25 European Union markets, along with the UK, Norway, and Switzerland, plummeted by 44% compared to February 2024.

The company sold fewer than 16,000 units in the month, reducing its market share to 9.6%—the lowest February figure in five years.

Meanwhile, European automakers capitalized on Tesla’s slump. Volkswagen recorded an impressive 180% increase in BEV sales, selling just under 20,000 units. The BMW brand, alongside its Mini subsidiary, reported nearly 19,000 BEV sales, further challenging Tesla’s once-dominant position in the market.

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Chinese automakers also made significant strides in the European market. BYD’s BEV sales surged by 94%, exceeding 4,000 units, while Polestar saw an 84% increase, surpassing 2,000 units. Xpeng and Leapmotor also gained traction, selling over 1,000 and nearly 900 cars, respectively.

However, not all Chinese brands enjoyed growth. Volvo, owned by China’s Geely, saw its BEV sales decline by 30%, while SAIC-owned MG experienced an even steeper drop of 67%.

Despite Tesla’s struggles, overall BEV registrations in the region rose by 25% year-over-year in February. However, total car sales across 25 EU markets, the UK, Norway, and Switzerland fell by 3%, reaching 970,000 units for the month.

Tesla’s declining European sales highlight increasing competition in the EV sector, particularly from legacy automakers and fast-growing Chinese brands. As Volkswagen, BMW, and other players ramp up their EV production, Tesla faces mounting pressure to sustain its market position.