Share: Tesla’s (TSLA.O) new car sales in Europe fell 27.9 per cent in May from a year earlier even as fully-electric vehicle sales in the region jumped 27.2 per cent, with the US EV maker’s revised Model Y yet to show signs of reviving the brand’s fortunes. Overall car sales in Europe rose 1.9 per cent, with the strongest growth coming from plug-in hybrids and cars powered by alternative fuels, data from the European Automobile Manufacturers Association (ACEA) showed. WHY IT’S IMPORTANT Tesla’s European sales have now fallen for five straight months as customers switch to cheaper Chinese EVs and, in some cases, protest against Tesla CEO Elon Musk’s politics. Tesla’s European market share dropped to just 1.2 per cent in May from 1.8 per cent a year ago. The revised Model Y is meant to revamp the company’s ageing model range as traditional automakers and Chinese rivals launch EVs at a rapid pace amid trade tensions. BY THE NUMBERS May new car sales in the European Union, Britain and the European Free Trade Association rose to 1.11 million vehicles, following a 0.3 per cent dip in April, ACEA data showed. Registrations at Chinese state-owned SAIC Motor (600104.SS) and Germany’s BMW (BMWG.DE) rose 22.5 per cent and 5.6 per cent respectively, while they fell 23 per cent at Japan’s Mazda (7261.T). In the EU alone, total car sales have fallen 0.6 per cent so far this year. That comes despite growing demand for EVs, with registrations of battery-electric (BEV), plug-in hybrid (PHEV) and hybrid-electric (HEV) cars rising 26.1 per cent, 15 per cent and 19.8 per cent respectively. EU sales of BEVs, HEVs and PHEVs combined accounted for 58.9 per cent of passenger car registrations in May, up from 48.9 per cent in May 2024. Among the largest EU markets, new car sales in Spain and Germany rose 18.6 per cent and 1.2 per cent respectively, while in France and Italy they dropped by 12.3 per cent and 0.1 per cent. In Britain, registrations were up 1.6 per cent.