The Tesla Model Y is a bestseller in Europe this year, even against a background of increasing competition in the field of electric vehicles. Competition will continue to eat away at Tesla’s impressive market share in the coming years, but it has a commanding lead in Europe, led by its flagship electric SUV.
Best selling electric vehicles in Europe – January-October 2022
Tesla launched Model Y in European countries last year and the vehicle topped European sales of both electric vehicles and gas and diesel vehicles in September, according to Forbes. The victory has an additional meaning for the American carmaker, which competes with local carmakers such as BMW, Volkswagen and Peugeot. Tesla also recently opened its first factory in Europe.
The Tesla Model Y sold 29,367 units in Europe in September, beating the second place seller and combustion engine vehicle, the Peugeot 208, which sold just 19,601 units.
While Tesla now has a gigafactory in Brandenburg, Germany, much of the automaker’s European deliveries have so far come from the Shanghai plant as the Grünheide site has ramped up production. Tesla’s push for globalization of manufacturing has enabled it to put pressure on European auto giants amid a shift to EVs.
Still, some analysts think Tesla will need to bring more new vehicles to market in the coming years to maintain its strength in Europe.
“Much of the growth of any car brand comes from its ability to bring new cars to market,” said JATO analyst Felipe Munoz. “The last time Tesla introduced an all-new model was in January 2020 when Model Y production began in the US. For almost three years, the brand has not really come up with anything new. The focus was instead on opening new factories around the world to meet local demand.”
The statements come ahead of Tesla’s plans to launch a updated Model 3 design on the market next year. In the past, Tesla made incremental design changes to its vehicles every few years, rather than the traditional automaker style of introducing a new model year version every year.
Compact vehicles remain an important sector for automakers in the European market, and with a new, smaller EV platform in the pipeline, Tesla could target this sector in the second half of the decade.
“Tesla’s CEO recently confirmed that the company is working on a next-gen platform for smaller electric cars. The main focus of this new platform would be to cut costs in half and achieve higher volumes than all other models combined,” UBS said in a recent note.
Schmidt Automotive Research’s Matt Schmidt pointed to some factors that could continue to hamper Tesla’s performance in Europe, but highlighted the limited deliveries possible as more companies ship EVs from China to European countries.
“From 2025, Tesla will come under pressure from European incumbents making a real push, with BMW launching their first true models based on true BEV-only platforms. This is when the real race for Tesla begins. Tesla has a window and they have to make the most of it.”
These and other logistical challenges remain for Tesla’s European presence. However, it’s worth noting that the US is heading into 2023 and outperforming the locals – before Giga Berlin has even become fully operational.
Originally posted on EVANNEX. Written by Peter McGuthrie.
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