In a historic milestone, the title of Europe's best-selling new car no longer belongs to a combustion engine vehicle. The Tesla Model Y claimed this prestigious position in 2023, with over a quarter of a million units gracing European roads, outpacing its closest competitor, the Dacia Sandero, by nearly 20,000 vehicles.
The remarkable success of the US brand's electric SUV is evident in the figures, with 254,822 Model Y units registered across the European Union last year, marking an impressive 85% increase from 2022 sales (137,608). This surge in sales is attributed to Tesla's strategic decision to slash prices by up to £9,000 at the start of 2023 across Europe and other global markets. The Model Y's ascent to the top of Europe's registration charts was further fueled by its leading position in Germany, the continent's largest market.
In Germany, the popularity of the Model Y was boosted by favourable company car taxation for electric vehicles, contributing to 6.5% of all new car sales with 45,618 registrations in the country. December witnessed a notable spike in EV registrations following the German government's announcement of an early end to e-car subsidies, having disbursed around €10 billion since the introduction of its electric car grant scheme in 2016.
Securing the second spot on the list of Europe's best sellers was the Dacia Sandero, with 235,893 units sold across the continent in 2023, marking an 18% increase compared to the previous year. Notably, this is the second consecutive year that the budget-friendly Dacia has claimed the runner-up position, with the Peugeot 208, last year's top-seller, slipping to fifth place in the overall rankings for 2023.
