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Tesla Model Y returns to dominance in Germany

Credit: Tesla

The Tesla Model Y was the best-selling electric vehicle in Germany in January.

Tesla has found astounding success in the German market. Recently, the German KBA, the agency which monitors vehicle registrations, found that Tesla sales had grown by more than 900% compared to January 2021. Further indicating Tesla’s success in the market, the KBA announced today that the Tesla Model Y was the best-selling EV during January of this year.

Selling 3,708 units during January, the Tesla Model Y took back its throne from the Tesla Model 3, which had become the most popular vehicle in Germany during the final months of 2022. In total, Tesla sold 4,241 vehicles, showing the Model Y was the clear market leader for the brand. The Model Y did drop in popularity compared to gas offerings, with the VW Golf returning as Germany’s favorite vehicle during the month, selling just over 6,000 units.

As pointed out in the KBA’s previous report, despite Tesla’s amazing sales growth since 2021, mostly influenced by the construction of Giga Berlin, the beginning of this year is a significant slump compared to the final months of last year. In January, EVs represented 10.1 percent of the overall car market, compared to December of 2022, equating to a 13.2 percent drop in market share. However, this does match the market trend in Germany, with EVs dropping in popularity generally.

It remains unclear why the dip in EV sales and Tesla sales occurred in the first month of the year, but it generally follows the auto industry’s trend of weaker sales in the first month of the year. Tesla’s cyclical deliveries could also be affecting sales numbers, especially following the strong end of Q4. Still, many have also pointed out that Tesla CEO Elon Musk has worked to smooth out these peaks and valleys.

With a big year for new EVs coming to the European market in particular, Tesla will need to double down on its production focus and continue to remain price competitive. With competitors like BMW at the high end and Volkswagen attempting to introduce more affordable EVs, Tesla will be forced to show customers why they should choose the American brand over legacy makers. Yet, if recent history is anything to go by, Tesla shouldn’t have too much trouble.

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Tesla Model Y returns to dominance in Germany
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