According to the latest data from JATO Dynamics, the European new car market is experiencing interesting trends. In April, the market share of pure electric cars reached 22 percent, the second-highest monthly share after December 2022’s 25 percent. This means that more than one in five new cars registered in Europe were electric.

Tesla plays a significant role in these results. Despite its limited and relatively outdated range, the American brand is capitalizing on the growing interest in electric driving. In August 2023, Tesla registered 33,809 cars in Europe, a 240 percent increase compared to the same month the previous year. Consequently, Tesla surpassed large mainstream European brands like Opel, Citroën, and Fiat, and was only 3,600 units behind Ford.

Tesla Continues To Soar

Tesla’s success continues with its models such as the Model Y and Model 3. The Model Y was once again the best-selling model in Europe and is expected to maintain its position until the end of the year. This puts Tesla in a remarkable position, with a foreign car dominating the European market. Tesla has reported over 169,000 units of the Model Y, marking a 216% increase. Additionally, the brand has been using price cuts for the Model 3 to expand its customer base and compete in other segments.

Tesla, along with two Chinese companies (Geely and SAIC), is steadily increasing its market share. This success can be attributed to strategic actions such as the gradual introduction of the Model 3, opening more sales points across Europe, and cutting prices. Tesla’s momentum is being maintained effectively.

MG Phenomenon

Another major winner in the transition from petrol/diesel cars to electric vehicles is MG. Although positioned as a British brand, MG is entirely designed, developed, and produced in China and is truly changing the game. With its competitive pricing and favorable consumer opinions, the MG 4 has gained popularity among consumers, helping MG reach the European top 20 in August with nearly 14,900 units.

MG’s sales number is higher than Suzuki, Mini, Mazda, and Jeep. Electric models account for 59 percent of MG’s sales volume, placing them in seventh place among the best-selling Battery Electric Vehicle (BEV) brands. MG has even surpassed major brands like Opel, Audi, Skoda, Peugeot, and Renault in terms of market share.

What About Traditional Brands?

The rise of Tesla and MG comes at the expense of reduced market share for traditional automakers such as Volkswagen, Ford, Citroën, Peugeot, and Hyundai. Although these brands offer electric vehicles, they are facing tough competition from Tesla and MG.

This is a challenge for traditional brands as Tesla lowers its prices, making its models more accessible and competitive in lower segments, while MG enters the market with highly competitive products.

The author of the article, Felipe Munoz, is an Automotive Industry Specialist at JATO Dynamics.