Tesla Faces Competition in Europe as Local Manufacturers Fight Back

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Auto sales in Europe rose in July as growing demand for electric vehicles and improved parts availability helped fuel an 12th consecutive month of growth.

New-car registrations increased 17% to 1.02 million vehicles, the European Automobile Manufacturers’ Association said Wednesday. Sales of battery-electric cars surged 62%, while deliveries of diesel models declined 9%. Markets including Germany, France and Spain saw double-digit sales growth.

Carmakers have been working through orders that stacked up during a prolonged period of supply issues. Now that shortages of semiconductors and other critical components have eased, the industry’s outlook is clouded by prospects for higher living and borrowing costs taking more of a toll on consumers.

While Tesla Inc.’s Model Y was the best-selling vehicle in Europe in the first half, local manufacturers are preparing to fight back. New battery-powered models from Volkswagen AG, Stellantis NV and BMW AG will hit showrooms in the coming months, with several making their debut at next week’s IAA car show in Munich.

Buyers in Germany registered 48,682 fully electric cars in July, up 69% from a year ago and by far the most among European markets.

In the UK — where London drivers are now subject to more stringent emissions rules — sales soared 88% to 23,010 units. France ranked third with 16,867 battery-electric vehicles delivered.

Volkswagen sold the most passenger cars in the region across all fuel types with 280,294 registrations, up 19% from a year ago. Stellantis sales slipped 3.3% to 160,251 vehicles.

Source : Fortune