Numerous inexperienced drivers populate the losing section, with Volkswagen outpacing the rest.
New car brands are having a hard time making a name for themselves in the German market, which is one of the biggest sales markets in the industry. This can be seen from the recent registration numbers released by the Federal Motor Transport Authority (KBA). Even electric car giant Tesla is facing difficulties, as their registration numbers show a sharp decline.
In recent years, we've seen an influx of new automobile brands entering the German market, with a significant portion coming from Asia and the US. Germany records around three million new registrations annually. Despite the large market size, many of the newcomers that arrived years ago are still struggling with zero sales figures, as per the latest KBA registration data from May 2024.
Only one new brand, MG, which is part of the Chinese SAIC Group, managed to sell significantly in May. They registered around 2700 new cars, which represents a 50% increase compared to the previous month and a market share of 1.1%. Currently, MG is performing better than companies like Suzuki, Nissan, and Mazda.
Polestar, Great Wall Motors/Ora, and BYD all had fewer new registrations, but still managed to hit the three-digit mark in May, with totals of 414, 268, and 201, respectively.
The rest of the newcomers struggled to make any noticeable impact. Aiways sold only four cars, Fisker 12, Ineos 31, Lucid 13, Lynk&Co a single car, Maxus 13, Nio 35, Vinfast 8, and Xpeng 12. Even Rolls-Royce and Bentley, two prestigious brands, managed to sell more cars than some of the newcomers - 42 for Rolls-Royce and 63 for Bentley.
The German automobile market is still dominated by established brands. Volkswagen takes the lead with 47,636 new registrations and a market share of 20.1%. Following closely behind are Mercedes with 19,832 (8.4%), BMW with 18,568 (7.9%), Skoda with 17,486 (7.4%), Seat with 16,036 (6.8%), and Opel with 13,455 (5.7%).
Tesla, however, is an exception. The US manufacturer is experiencing a slowdown in new registrations, almost dropping off the charts. In the first five months of the year, Tesla saw a 41.4% drop in new registrations. In May, they only sold 1900 cars, which is a decline of 64% compared to the same month the year before. Lynk&Co had the steepest decline, with a whopping -99.6%.
It seems newcomers are finding it challenging to establish themselves in the German automobile market, with Tesla being an exception due to its ongoing struggles. Despite entering the market in greater numbers in recent years, the vast majority of newcomers remain insignificant, as the German market remains dominated by well-established brands like Volkswagen, Mercedes, and BMW.
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Volkswagen's success in the German market continues even in the face of new competition, outperforming many new car brands. While Tesla Motors, known for their electric vehicles, is currently facing registration number challenges in Germany, other automobile manufacturers like Great Wall Motors and its brand Ora, as well as Polestar, are making noticeable sales with triple-digit registrations.
Despite the massive number of new automobile brands entering the German market in recent years, many struggle with sales figures, even established brands like Suzuki, Nissan, and Mazda. However, MG, a Chinese brand, stands out with significant sales of around 2700 cars in May, improving their market share.
The rise of electromobility has not spared Tesla from market challenges, as they experienced a substantial drop in new registrations, nearly dropping off the charts in May 2024. Meanwhile, established car manufacturers like Volkswagen, Mercedes, BMW, Skoda, Seat, and Opel continue to dominate the German automobile market.
