Europe EV Sales Report — Volkswagen Is Recovering Its Mojo

Recent data shows that in May, some 226,000 plugin vehicles were registered in Europe, marking a 10% decrease compared to the previous year. This decline is more pronounced than the overall market’s 3% year-over-year drop. Despite Tesla’s deliveries plummeting by 35% in May, even excluding Tesla from the count would still result in a decrease in plugin vehicle registrations.

Breaking down the market, Battery Electric Vehicles (BEVs) saw an 11% decrease, while Plug-in Hybrid Electric Vehicles (PHEVs) experienced a 10% decline. With Tesla’s decline, non-Tesla BEVs also dropped by 7%, and PHEVs followed suit. However, amidst the challenges, two standout performers are the new Volvo EX30, now competing at Tesla’s level, and the Tesla Model 3, which saw a 26% increase in sales year-over-year in May, thanks to a recent refresh.

Both the EX30 and the Model 3 share the distinction of being manufactured in China, contributing significantly to sustaining Europe’s EV market. However, concerns arise regarding tariffs that may impact this positive trend.

Looking at other powertrains, plugless hybrids experienced the most significant growth in May, with a 15% year-over-year increase, representing 30% of the total market. When combined with plugin vehicles at 21%, over half (51%) of the European car market is now electrified in some form. This growth comes at the expense of traditional petrol and diesel vehicles, which saw declines of 6% and 11% year-over-year, respectively, in the passenger car segment.