Tesla and its Chinese competitor BYD reported a drop in sales in a further sign that the electric car industry is faltering, after Apple also recently canceled its own electric vehicle project.
The two companies, two of the largest sellers of electric vehicles worldwide, have been forced to lower their prices to increase demand for their cars as they fight fiercer competition, particularly in China.
Almost all models manufactured by the BYD company have had their sales price reduced, accompanied by the slogan “electricity is cheaper than oil”, while the price war continues in China, which is the largest electric vehicle market. biggest in the world.
For some time, the traditional auto industry has warned that average buyers are being discouraged from purchasing electric cars because they are more expensive than gasoline alternatives and because of long recharging times and poor charging infrastructure.
This comes after carmakers from Mercedes-Benz to Ford announced they would delay or scrap more electric vehicles (EVs) as demand slowed in Britain and abroad.
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Tesla has reported a drop in sales in a further sign that the electric car industry is faltering (Tesla cars pictured at a dealership in Austin, Texas, US)
Chinese car company BYD saw a whopping 42 percent drop in quarterly shipments, selling 300,114 electric vehicles.
At the end of February, Apple canceled work on its electric car project called Titan and Aston Martin delayed the launch of its first battery electric vehicle (BEV) until 2026.
Mercedes-Benz delayed its electrification goal, Ford said it was reconsidering its electric vehicle strategies and Volkswagen delayed the launch of an upcoming electric vehicle. And in recent months, Audi and General Motors have also revised their electric vehicle launches.
Purchases of new electric cars by private buyers fell 25 percent year-on-year in January, figures from the Society of Motor Manufacturers and Traders (SMMT) show.
And forecasts showed BEVs will take a 21 percent market share this year, down from a 22 percent estimate in October and the 23 percent expected a year ago.
High interest rates are among the reasons behind a slowdown in demand for generally more expensive electric vehicles, which can be up to £10,000 more expensive than their petrol or diesel equivalents, prompting the industry to cut jobs. and reduce production.
In the first quarter of this year, from January to March, Tesla only delivered 386,810 cars, the lowest figure since the third quarter of 2022 and a drop of more than a fifth from the end of last year.
This also represents a decline of around eight percent from the same period last year and against expectations of selling around 450,000 cars in the quarter, which it failed to meet.
After Tesla announced the news yesterday, its shares fell about five percent.
Despite less-than-stellar news for Tesla and SpaceX founder Elon Musk, the American electric car maker once again overtook BYD as the world’s largest EV seller, as the Chinese company saw a huge drop in sales. 42 percent in quarterly shipments.
The proportion of electric vehicle sales fell from 16.6 percent in 2022 to 16.5 percent in 2023. It had been forecast to reach 17.7 percent in 2023 (February data).
In late February, Apple (pictured CEO Tim Cook) canceled work on its electric car project called Titan.
An electric vehicle charging bay appears empty in Morley, Leeds, West Yorkshire
Electric car charging costs according to data from zap-map.com. Petrol car figures use the current RAC unleaded fuel price. The fuel cost figures per year do not include any additional running costs such as maintenance.
BYD, which sells plug-in hybrids and all-electric cars, posted an update saying it sold 300,114 electric vehicles (after overtaking Tesla late last year, the FOOT reports.
At the time, Tesla blamed factory walkouts that were the result of unrest in the Red Sea and an arson attack by environmental activists in Germany.
Figures have also shown that sales of new electric cars have slowed nationally in the UK.
A House of Lords committee report in February claimed that electric vehicle sales are “stagnant” among private drivers as many cannot afford them and due to the slow rollout of public chargers, especially in rural areas.
But MailOnline found that even where public chargers were installed, many electric vehicle charging points were empty.
The poor sales have sparked a blame game in Westminster, where actor and comedian Rowan Atkinson has even been held responsible after describing electric vehicles as “a bit soulless” in a comment he wrote in June last year.
It comes amid the Government’s goal to completely phase out petrol, diesel and hybrid vehicles by 2035, something Prime Minister Rishi Sunak delayed by five years in September.
Industry figures showed that sales of new electric vehicles to private car buyers plunged 25 percent last month compared to January 2023.
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And annual figures showed the share of electric car sales had fallen from 16.6 percent in 2022 to 16.5 percent last year, the first time it has fallen in reverse.
The Office for Budget Responsibility (OBR) had forecast that electric vehicles would account for 17.7 per cent of new car sales in March 2023. They also predicted sales would rise to 59.6 per cent by 2026-27.
The OBR believes higher upfront costs are deterring customers, while the availability of public charging points also appears to be a concern for many drivers.
While sales of electric vehicles among companies grew by 42 percent, it is a blow to the Government’s goal of banning sales of new gasoline and diesel cars by 2035, as it needs to convince more than 30 million drivers private to make the change.