Tesla (NASDAQ:TSLA) recorded a decline in new vehicle registrations across the European Union in January, with sales falling year-on-year even as the region continued shifting toward electrified vehicles, according to industry data released Tuesday.
The U.S. electric vehicle manufacturer registered 8,075 cars in the EU during the month, down from 9,733 units a year earlier. As a result, Tesla’s market share decreased to 0.8%, compared with 1.0% in the same period last year, figures from the European Automobile Manufacturers’ Association showed.
Overall demand for new cars in the EU weakened, with total registrations declining 3.9% in January. Despite this slowdown, battery-electric vehicles (BEVs) increased their share of the market to 19.3%, up from 14.9% a year earlier, pointing to intensifying competition in a segment Tesla previously led.
Hybrid-electric vehicles remained the dominant powertrain, accounting for 38.6% of registrations, while traditional petrol and diesel cars continued to lose market share.
Tesla’s weaker performance stood in contrast to robust growth in BEV sales across major markets such as France and Germany, highlighting mounting competitive pressure from established European automakers.