BMW pulls ahead of Tesla in European EV sales for first time
Sales of Chinese EV imports fell sharply due to EU tariffs
BMW AG outsold Tesla Inc. on electric vehicles in the European Union for the first time last month as the German carmaker managed to increase shipments in an otherwise weakening market for battery-powered cars.
Sales of fully electric BMWs in the bloc jumped by around a third to 14,869 units in July, according to data compiled by consultants Jato Dynamics. Tesla's shipments declined 16 per cent to 14,561 units.
While Tesla still dominates the region's year-to-date sales ranking, BMW's strong July showing marks the first time the luxury-car maker overtakes Tesla. In total, European car buyers registered 139,300 new EVs, a decline of 6% compared to the same month last year.
Demand for electric cars is cooling in Europe after countries including Germany and Sweden ceased or pared back subsidies, prompting manufacturers to walk back their EV ambitions.
Volkswagen AG "- the region's biggest automaker "- said this month it's reducing capacity at high-cost plants in Germany and indicated it might delay new electric models. Mercedes-Benz Group AG is revising its electrification plans and battery ambitions.
"The lack of clarity around the incentives for "- and future of "- EVs continues to present a barrier to consumers," Jato analyst Felipe Munoz said. "These factors, alongside the low residual value of EVs, contributed to the decline seen in July."
BMW managed to buck the trend thanks to robust demand for EVs including the i4 and iX1, which outsold similarly sized models from Mercedes and Audi. Tesla's Model Y kept its title as the best-selling electric model in Europe in the first half, but shipments of the over four-year-old model are waning.
While Chinese carmakers led by BYD Co. and SAIC Motor Corp. have been gradually expanding in Europe this year, new EU tariffs slowed their influx by 45% in July compared to June.