BMW has emerged as the leader in the European battery electric vehicle (BEV) market for the first time, surpassing U.S. automaker Tesla, according to data from market research firm JATO Dynamics. In July, the German auto giant sold 14,869 BEV cars, edging out Tesla by approximately 300 units.
This milestone marks a significant shift in the electric vehicle (EV) business, where traditional automakers have historically trailed behind pure EV manufacturers like Tesla. BMW’s success reflects the growing impact of government policies and strong brand loyalty in driving the adoption of electric vehicles.
Felipe Munoz, Global Analyst at JATO Dynamics, said: “The lack of clarity around the incentives for — and future of — EVs continues to present a barrier to consumers considering an EV. These factors, alongside the low residual value of EVs, contributed to the decline seen in July.”
Despite BMW’s rise, Tesla remains a dominant force in the global EV market. However, traditional automakers such as BMW and Volvo are making significant strides, capitalizing on uncertainties surrounding EV subsidies and incentives.
BMW reported a 35 percent increase in sales last month compared to a year earlier, while Tesla saw its registrations drop by 16 percent, according to the report. Overall, about 139,300 new electric cars were registered in July, representing a 6 percent decline from the same period in 2023. The market share of EVs also slipped to 13.5 percent from 14.6 percent a year earlier.
Tesla’s performance has been impacted by various factors, including CEO Elon Musk’s polarizing public persona, which has reportedly influenced consumer sentiment toward the brand. As the EV market continues to evolve, traditional automakers like BMW are gaining ground, reshaping the competitive landscape.