Tesla Model Y in decline? Combustion comeback led by Volkswagen T-Roc and Golf as electric car sales slip in Europe

Australia might be in the middle of an electric car boom right now, but EV sales in Europe have taken a hit, and even the popular Tesla Model Y is falling out of favour as petrol makes a comeback.

Europe is ahead of the curve when it comes to electric car sales. The stricter emission mandates means the transition from combustion-powered cars with petrol and diesel engines to electric and hybrid vehicles is happening sooner than in Australia.

In 2023 electric vehicles made up 23.6 per cent of new-car sales in Europe. But the latest figures are showing a downtown in sales as combustion-powered vehicles make what appears to be a comeback.

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Volkswagen’s T-Roc small SUV, which is only available with a diesel or petrol engine, leads the way in May and is up by 12 per cent compared with May in 2023 with 19,748 sales in Europe. Hot on its heels is another internal combustion engine Volkswagen model (it's also offering in mild hybrid and PHEV guise) - the Golf - with 19,333 sales for the month which is up by 28 per cent compared to the same time last year.

That’s a big change from last year when Tesla’s Model Y mid-sized electric SUV was the best-selling car in May 2023, but it's fallen to 18th place with sales plummeting 49 per cent with just 10,852 sold in May.

Volkswagen Golf

It’s not just Tesla experiencing the drop with total EV sales in May down by 11 per cent as models such as the T-Roc and Golf fight back.

In Australia the Model Y is replicating the success it’s had in Europe with the SUV outselling its mid-sized rivals with 1609 sales for May which represents a 34.3 per cent share of its segment. Sales this year as of the end of May sit at 9610 which is up by 13.8 per cent year-to-date, and almost five times that of the its nearest competitor, the Lexus NX.

Volkswagen T-Roc

Australia will have to wait and see if the EV sales slump is mirrored here, too. A factor which could prevent this from happening is the arrival of affordable Chinese EVs such as the MG4 and BYD Atto 3.

Volkswagen will soon launch its electric models here, too, with the ID.4 and ID.5 SUVs arriving first followed by the I.D Buzz electric Kombi van and ID.3 hatch.