Tesla has sold more EVs than BMW, Mercedes, Porsche and the VW Group combined, retaining its status as the top EV brand in Germany

GERMANY

Despite German manufacturers going on the offensive with their push toward electrification, Tesla sales have trumped electrical vehicle (EV) sales of the Volkswagen group, BMW, Mercedes and Porsche combined.

In the first half of 2023 alone, Tesla delivered nearly 890,000 vehicles. Comparatively, the combined number of EV deliveries from BMW/VW/Mercedes/Porsche combined only tallied up to just under 600,000.

In Germany’s own home turf, Tesla still remains the most sought-after EV brand, beating out the homegrown competition. Earlier this year, automotive market researcher JATO reported that the Tesla Model Y is Europe’s best-selling car in Q1 2023.

The sharp uptake in Tesla ownership can also be seen here in Singapore. Singaporean deliveries of the Model Y began in September 2022, and that month alone saw 219 Model Ys registered for road use, topping sales charts for the month.

There are a number of reasons attributed to the dwindling sales for the Germans. Software issues, repurposing production sites that have catered to ICE vehicles for recent decades, a shortage of skilled manpower and inflationary pressures are among the contributing factors fo the Germans’ weakening position in the market.

Even in China, the German manufacturers’ largest market, sales of German EVs have waned, with the vast majority making the jump to Tesla or China’s homegrown brand, BYD in favour of the Teutonic marques – Both Tesla and BYD are dominating the local market share in China. Mercedes-Benz has even gone as far as to slash prices of the EQS luxury Saloon in an effort to boost sales.

However, it isn’t all bad news for the Germans. The aforementioned German brands are still making healthy profits from sales of combustion engine vehicles in China. Volkswagen also intends to produce a compact EV that is projected to cost less than 25,000 euros (approximately S$36,700), undercutting the Model 3 by some margin. BMW also intends to cut battery costs by half and introduce improved battery tech in their upcoming Neue Klasse platform, which should increase charging speeds and range for BMW EVs moving forward.

Additionally, the Tesla Model 3 (which was the best-selling vehicle in the world back in 2021) has yet to see any significant updates or facelifts to refresh the ageing model. Tesla has teased a newer smaller model in the works, but it may be some time before we get a full reveal of it.

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