European Market Strong… Continued Decline in Tesla Sales: SNE Research announced on the 10th that the total number of registered electric vehicles in countries excluding China increased by 21.3% year-over-year to 2,193,000 units.
In regions, Europe saw growth of 26.2% compared to last year, driven by the release of new models like Renault R5, Stellantis e-C3, Kia EV3, and Hyundai Casper Electric, which revived demand.
The North American market only grew by 4.0%. Though GM, Ford, and Hyundai Motor Group are increasing their local production due to the IRA tax credit benefits, policy uncertainty is rising due to the Trump administration’s subsidy reductions and additional tariff considerations.
Excluding China, the Asian market grew by 37.1% compared to the previous year. However, the strong demand for hybrids and differing national policies are seen as limiting growth.
Japan is showing signs of moving away from its hybrid-centric strategy with Toyota and Lexus releasing new BEV models. India aims for a 30% electric vehicle share by 2030 and is organizing subsidy systems and expanding charging infrastructure. In Southeast Asia, Thailand and Indonesia are emerging as EV production hubs, with local governments offering factory incentives and tax benefits.
In terms of automakers, the Volkswagen Group recorded a 71.0% year-over-year increase, selling 374,000 units, supported by strong sales of key models like the ID.3, ID.4, ID.7, and Q4 e-Tron.
Tesla’s sales decreased by 20.1% to 259,000 units due to a decline in Model 3 and Y sales, decreasing by 34.6% in Europe and 9.1% in North America. SNE Research noted that Tesla’s schedule for producing new affordable models is delayed by at least three months. The company is also focusing on the development of FSD software and expanding subscription-based revenue models, but Elon Musk’s political statements might be affecting consumer trust.
Hyundai Motor Group saw an 11.4% increase, selling approximately 189,000 units and demonstrating competitiveness by surpassing Stellantis, Ford, and GM in certain segments in North America. Kia is reinforcing its electric vehicle mainstream strategy by unveiling the EV4 and Europe’s EV2 concept car.
SNE Research concluded that “the electric vehicle market is now in a phase of complex competition, intertwining regional tailored transition strategies with geopolitical factors, rather than merely environmental competition,” emphasizing the need to consider uncertainty and opportunities outside China to secure strategic advantages through product diversification, policy flexibility, and localization investments.