The demand for electric vehicles (EVs) the world over is under stress and this is perhaps most evident in Europe where Tesla Model Y has tumbled from being the best-selling new vehicle overall in the first half of 2023 to the eight best-selling vehicle in the January to June period. Sales data from European Union and the UK reveal that 101,181 units of Tesla Model Y were sold here in the first half of the ongoing year.

While Model Y still is the best-selling EV in the EU and the UK combined, its fall from the pedestal and no other EV making it to the top-10 list shows just how significantly the demand for battery-powered cars have come down. Taking the crown in the top-10 list is the Dacia Sandero sub-compact car with 143,596 of the model being sold. The enormously popular Volkswagen Golf took the second spot with 126,993 units sold while the Renault Clio mini car was third with 114,623 sold. The Volkswagen T-Roc completed the top-five list with 111,381 sold.

Electric shock for Tesla?

The going has been getting steadily tougher for Tesla and many other EV-only automotive companies. Even veterans of the industry, like Mercedes-Benz and Ford are realigning plans and assessing the potential of the current market trends.

But for Tesla, the world's largest EV maker, the pressure is also coming in from Chinese manufacturers who have a very dominant say in the home market while also expanding to foreign shores. BYD has bridged the gap significantly and while declining demand for EVs is a challenge for all, automotive experts agree that Tesla has more to lose than others.

Tesla deliveries in the first half of 2024 fell by a little over six per cent the world over, compared to the first six months of 2023. Aggressive price cuts in many key markets have not done much to boost and bolster demand. CEO Elon Musk had previously blamed ‘weak’ offerings from rivals as hurting the larger EV market. "We saw at launch an adoption acceleration of EVs, and then a bit of a hangover as others struggle to make compelling EVs," he had said.