New vehicle registrations in Europe increased by 18% in May 2023. The shift was due in part to the growing demand for electric cars like Teslas, which are outpacing the broader automotive market.
This increase represents the 10th consecutive month of rises, and it was driven by strong sales of battery-electric vehicles, which jumped 66% to 170,389 units, as highlighted in a document released by industry association ACEA.
The growth of EVs has been substantial, thanks in part to the ramp and rising popularity of vehicles like the Tesla Model Y, which is now produced at Gigafactory Berlin.
A look at Tesla’s sales in May for the EU + EFTA + UK markets shows that the EV maker sold a total of 29,600 cars during the month, a 1,920.5% increase from the 1,465 that were sold in May 2022. From January to May 2023, Tesla sold a total of 138,294 units, a 121.8% increase year-over-year.
Tesla’s registrations for the month were 29,000 for a 2.6% market share. That’s up from Tesla’s 0.2% market share in May last year. This may be partly due to the Model Y’s increased supply from Giga Berlin, as well as Tesla’s aggressive price cuts for its lineup of vehicles.
Overall, nearly 14% of the new cars registered in the first five months of 2023 were battery-electric vehicles, with sales climbing more than 40% to just over 730,000 units, as noted by ACEA. Vehicle registrations in the EU, EFTA, and UK markets stood at 1.12 million cars, a notable increase from the 948,815 units that were sold in the same month last year.
Italy and Germany led the overall sales rise with gains of 23% and 19%, respectively. Volkswagen Group, Europe’s No. 1 automaker, saw sales rise 20%. Sales of Stellantis increased by 0.5%.
As noted in an Automotive News Europe report, carmakers in Europe today are building more vehicles after longstanding supply chain problems have started to ease. But while carmakers are seemingly no longer struggling to keep their production lines running, the focus has now reportedly shifted to consumers dealing with higher living costs and rising utility prices.
ACEA’s report on Europe’s May results can be viewed below.
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