Electric cars are growing in Europe despite Tesla's punishment.

BarcelonaAlthough the European automobile market is showing weakness due to two basic factors - the low growth of the major economies, especially Germany, and the change in technologies that creates doubts in buyers—, the electric car market escapes this dynamic and has grown at a good pace, reaching historic highs during the first quarter of this year. This growth has not slowed the punishment European consumers have for Tesla, the world leader in 100% electric cars, since its founder and CEO, Elon Musk, arrived in the White House and became involved in the Trump administration.

The European electric vehicle market reached historic highs in March, according to one of the conclusions of the industry data firm Jato Dynamics, a benchmark in the automotive sector. Specifically, during this month, 240,892 battery electric vehicles (BEVs) were sold in Europe, 23% more than last year. This is the second best result recorded for this propulsion system, after December 2022, when 275,108 units were sold. In the first quarter as a whole, 570,943 electric vehicles were sold across the 28 European markets analyzed (the most important ones), a year-over-year increase of 28%. "March was a crucial month for electric vehicle (BEV) registrations in Europe, indicating that the increase we are seeing in supply is finally having a real impact on the overall market," explains Felipe Muñoz, global analyst at Jato Dynamics.

In March, electric vehicles accounted for 16.9% of total registrations, representing a 2.7 percentage point increase in market share compared to March 2024, with a year-over-year increase of 23%. In terms of registered units, this was the record quarter for BEVs. And against this backdrop, Tesla—the world's largest electric car manufacturer by sales volume in 2024—recorded a 30% drop in registrations. Despite the negative trend, the 30% drop in March was less pronounced than those recorded in January (-47%) and February (-44%). "As the brand is still grappling with several public relations issues, in addition to the change in the Model Y model, Tesla is now relying on the Model 3 to offset its losses," adds Muñoz. In fact, in March the Model 3 registered a 1.1% increase, but in the first quarter it fell 14%, while the Model Y fell 49%.

Despite the offensive by Chinese electric car brands to position themselves in Europe, the Old Continent's firms have not thrown in the towel. In the first quarter, the Volkswagen ID.4 ranked third, thanks to a notable 115% increase in registrations.

On the other hand, the overall car market showed signs of recovery in March, according to Jato Dynamics. A total of 1.42 million units were registered in Europe, up 3.2% compared to March 2024. These results helped offset the declines recorded in January and February, allowing the first quarter to close with a total of 3.383 million units registered, close to the 3.384 million registered in the previous year.

In Spain, the market has not performed as it has in the rest of Europe. The replacement of vehicles destroyed by the DANA (High Voltage Damage) in the Valencian Community has boosted the overall automotive market, which has grown by 14 percent to 279,368 registrations. Furthermore, a significant increase in electrified vehicles has also been detected. According to data from the manufacturers' association Anfac, 39,741 plug-in hybrid and pure electric vehicles were sold during the first quarter of the year, representing a 46.7% increase compared to the same period last year. And this is despite the fact that during the first quarter, the reactivation of the MOVES plan had not been approved to boost the sale of electric cars, with a budget of €400 million by the end of the year.

45% increase in Catalonia

The Catalan market also saw a significant increase in electric car registrations in the first quarter. According to data from the Spanish employers' association, 2,045 pure electric cars and SUVs were sold during the first three months of the year, 45% more than the previous year. In the case of plug-in hybrids, 1,762 were registered, almost 31% more than in the same period in 2024. However, the percentage of electrified cars is still low considering total sales: of the 31,034 vehicles registered during the first quarter, electrified vehicles accounted for 1,000.

Even Seat—which is in the process of electrifying its Martorell plant—has seen a rise in electrified vehicles. According to company sources, electric models accounted for 23.7% of all Cupra sales during the first quarter, a figure that doubles the percentage for the same period in 2024. Cupra has two 100% electric models: the Born, which is manufactured in Germany, and the Tavascan, which is the flagship in China, carries a 30% tariff, which has plummeted Seat's first-quarter profits by almost 98%, to €5 million. Furthermore, Seat and Cupra already have plug-in hybrid models, which has boosted sales of electrified vehicles for both brands. Deliveries of electrified cars grew 95.3% in the first quarter to reach 37,700 units, almost double the 19,300 in the same period last year.