MARKET UPDATE
Latest update at the bottom:
Tesla came to within less than 50,000 units of equalling Mercedes-Benz Passenger Cars new volumes (without Smart) during this year’s second quarter
Between April and June Mercedes-Benz Passenger Cars recorded 510,800 new passenger car sales while Tesla recorded 466,140 new car deliveries, bringing the difference during Q2 to just 44,660 units according to company data, with Smart being adjusted manually.
Meanwhile, during the opening half of 2023 Mercedes-Benz Passenger Cars sold 1,008,900 units compared to 889,015 deliveries from Tesla.
Meanwhile during Q2 BMW-brand (not including MINI or Rolls-Royce) continued to lead all three with 553,369 units, remaining 87,229 units ahead of Tesla during the same period, and 42,569 units ahead of its German rival that carries the star logo.
While the German premium-duo continue to pursue their value-over-volume strategy, exposed more to residuals through their financing business, Tesla’s volume-over-value push – as they aim to keep production facilities at a high utilisation rate – are happy to see margins fall with the aim of “harvesting them in the future” according to their CEO, Musk, through chargeable software updates going forward – assuming these services can be achieved.
Audi which had a change of CEO at the end of the second quarter, are yet to release their second quarter data, but the year’s opening quarter was the first that saw Tesla volumes surpass the brand with 4 rings, with 415,684 and 422,875 volumes respectively.
During May it was evident that Audi, with one of the oldest product portfolios out of it German peers made a concerted effort to push volume it appears, resulting in it being the number one brand outright in the UK’s May passenger car market for instance accounting for over 8 per cent of the market and more volumes than its sister brand Volkswagen according to The Society of Motor Manufacturers data.
Audi numbers are expected to be published later this week. ◼︎
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UPDATE 14.07.2023:
#Tesla growth narrative saved by price cuts?
Thanks to Tesla's price cuts through its volume-over-value strategy, it now finds itself in the same volume league as German premium OEMs.
However #Audi moved back in front of Tesla during Q2, which perhaps shows the first cracks in Tesla's growth drive given its reliance on large price cuts to achieve this.
Between April and June Mercedes-Benz Passenger Cars recorded 510,800 new passenger car sales while Tesla recorded 466,140 new car deliveries, bringing the difference during Q2 to just 44,660 units according to company data, with Smart being adjusted manually.
During the same period, BMW-brand (not including MINI or Rolls-Royce) continued to lead all three German premium brands with 553,369 units, remaining 87,229 units ahead of Tesla, and 42,569 units ahead of its German rival that carries the star logo.
While the German premium-trio (including Audi) continue to pursue their value-over-volume strategy, exposed more to residuals through their financing business, Tesla’s volume-over-value push – as they aim to keep production facilities at a high utilisation rate – are happy to see margins fall with the aim of “harvesting them in the future” according to their CEO, Musk, through chargeable software updates going forward – assuming these services can be achieved.
This arguably also puts Tesla in terms of pricing, below premium manufacturers (despite the comparative profit margin) and sees them going head-to-head with incumbent volume manufacturers. According to the latest Schmidt Automotive Research data for this year's first half period, Tesla, with 3 per cent market share across Western Europe's new passenger car market, stands within 0.2ppt of equalling the likes of #Citroën's same region volumes and just 0.3ppts behind #Fiat.
Audi which had a change of CEO at the end of the second quarter, achieved 491,400 units in Q2, putting them ahead of Tesla once again despite one of the oldest product line-ups out of all three German premium OEMs. They will launch a BEV product offensive from Q1 2024, starting with the BEV-dedicated PPE VW Group electric platform, designed primarily for #Porsche and Audi models, with the Q6 SUV.
During May it was evident that Audi, with their dated portfolio made a concerted effort to push volume, resulting in it being the number one brand outright in the UK’s May passenger car market for instance accounting for over 8 per cent of the market and more volumes than its sister brand Volkswagen according to The Society of Motor Manufacturers data.
Q2 2023 global deliveries:
BMW: 553,369
Mercedes: 510,800
Audi: 491,400
Tesla: 466,140
Source: OEMs
More in-depth reporting in the full study published each month. The study now also features an in-depth look at the Chinese OEMs as their European expansion slowly begins. Are Chinese OEMs really a threat to the established European OEMs and what does the outlook look like?
May also interest you: French OEMs most vulnerable to Chinese incursion? Click here for the story
*Western Europe 18 Markets: EU Member States prior to the 2004 enlargement plus EFTA markets Norway, Switzerland, Iceland, plus UK