This shift highlights the growing success of traditional automakers in the electric vehicle market, driven by government policies and strong brand loyalty, after previously trailing behind pure electric-vehicle manufacturers like Tesla.

Felipe Munoz, Global Analyst, JATO Dynamics, commented on the broader market trends, noting, "The lack of clarity around incentives and the future of EVs continues to be a barrier for consumers considering an EV. These factors, along with the low residual value of EVs, contributed to the decline seen in July."

While Tesla remains the dominant player in the global EV market, traditional automakers like BMW and Volvo are rapidly gaining ground, partly due to uncertainties around EV subsidies and incentives. Additionally, reports suggest that Tesla CEO Elon Musk's polarizing public persona has influenced consumer sentiment toward the brand.

BMW saw a 35% increase in sales in July compared to the previous year, while Tesla experienced a 16% drop in registrations. Overall, around 139,300 new electric cars were registered last month in Europe, marking a 6% decrease from July 2023. The market share of EVs also slipped to 13.5% from 14.6% a year earlier. (ET)