BMW outpaced Tesla in EV sales for the first time in July 2024. This marks a major milestone for BMW, as it continues to strengthen its position in the EV segment, despite continuing to offer hybrid, plug-in hybrid, and traditional gasoline-powered vehicles. According to data from analytics firm JATO Dynamics, BMW sold 14,869 electric vehicles in Europe last month, narrowly surpassing Tesla, which sold 14,561. Of course, this 308-unit lead is quite slim.
Tesla experienced a slump in registrations last month, with its popular models, the Model Y and Model 3, both seeing declines. Sales of the Model Y, which was still the best-selling EV in Europe, dropped by 16%, with 9,544 units sold. Model 3 sales fell by 17%, reaching 4,694 units. These declines opened the door for BMW to move into the top spot for EV sales in Europe for the first time, helped by strong performances from the BMW iX1 and i4.
In contrast, BMW’s iX1 and i4 models made significant gains, ranking among the top ten best-selling EVs in Europe in July. The iX1 registered 4,305 units, a 25% increase, while the i4 saw 4,198 registrations, up 23%. Despite the overall success, the European EV market as a whole saw a decline, with total EV sales falling by 6% year-over-year. JATO Dynamics attributed this drop to factors such as the reduction of government incentives and concerns over resale values.
Broader Market Trends: SUV Dominance
The European car market grew by 2% in July compared to the same period in 2023, with 1.03 million vehicles registered. SUVs continued to dominate, accounting for 54% of all sales. BMW was one of the key players driving this growth, alongside other major automakers like Toyota, Mercedes, and Volvo-owner Geely. According to JATO, consumer preferences away from traditional vehicle segments and toward SUVs, contributing to the segment’s 6% year-over-year growth, with a record 554,000 units registered in July.
Luxury SUVs, in particular, saw a notable surge, with registrations up 32% year-over-year, while large SUVs also performed well, with a 23% increase. Mid-size SUV registrations, however, declined by 7%, indicating a shift in consumer preferences toward larger, more premium models.
Tesla Still Leads Year-to-Date
While BMW’s July success is noteworthy, Tesla still maintains a strong lead in year-to-date (YTD) sales in Europe. Through July 2024, Tesla sold 178,700 EVs, significantly ahead of BMW’s 97,525 units and Volkswagen’s 88,445.
[Source: JATO Dynamics via Bloomberg]
