Posted on March 03, 2016 by Matt Pressman
How do you make a significant impact on auto sales in the European market? The quickest shortcut would be to increase sales in Germany, which according to Bloomberg "accounts for nearly a quarter of all auto sales across Europe." In fact, "the [automotive] industry sees any [electric vehicle] rebates in the country as a potential game changer due to the size of the German market." Likely to become available on July 1st, Germany's "Vice Chancellor Sigmar Gabriel [is] in favor of using state funding -- coupled with financial support from the industry -- to provide 5,000 euros ($5,400) in incentives per [electric] car to offset the higher price." For electric vehicle companies like Tesla Motors, this could help spark sales of its electric vehicles in Europe's largest automotive market.
Above: Tesla parked along the canals in Amsterdam (Instagram: @missvictoriakey)
Bloomberg explains, "[Automotive] executives point to France, where the government last year started offering a 10,000-euro rebate to drivers trading in diesel-powered cars older than 14 years, and Norway as examples of how governments can aid in the development of the market for the green technology... In Norway, electric cars enjoy a plethora of perks. There’s no value-added tax on purchases nor a one-time fee imposed on regular cars. There is also free charging, free parking and an exemption from congestion charges. On top of that, electric-car owners are allowed to drive in bus lanes to avoid traffic. The result? Nearly 26,000 electric cars were sold in Norway last year -- accounting for about 17 percent of the overall market."
Above: Tesla Model X at the Geneva International Motor Show (Source: Car Scoops)
And a few days ago, invitations for European signature reservation holders to configure their Tesla Model X were sent out -- this will likely have a positive effect to European sales for Tesla Motors (additive to its Model S sales). And, according to Car Scoops, "Since gas prices can't be as low as they are in the US all over the world, Tesla's Model X might attract a great deal of European customers. Naturally, Tesla chose to have the Model X P90D on display in Geneva [at the biggest auto show in Europe, the Geneva International Motor Show], since it pretty much represents the pinnacle of performance and efficiency when it comes to these types of vehicles."
Above: Auto Express UK raves about the Tesla Model X in Geneva
In addition, it's clear that Tesla's popularity in Europe is growing rapidly when the famed German automotive tuner, Brabus, "a name synonymous with Mercedes-Benz" chooses to make its own version of the Tesla Model S, a centerpiece at their Geneva International Motor Show booth (see below).
Above: Brabus puts its Tesla Model S center stage in Geneva (Source: Top Gear)
Even large European electric vehicle charging networks, like Fastned, are scrambling to make it's charging stations available to Tesla owners. So, as Europe continues to roll out electric vehicle incentives -- especially in the largest European market, Germany -- along with the Tesla Model X European launch in the coming months, it's clear that Europe is poised to be a major growth market for Tesla Motors in 2016.