CGTN Europe interviewed Jim Saker, President of the Institute of the Motor Industry at Loughborough University
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00:00Tesla sales in Europe have fallen nearly 50% compared to this time last year as the electric car maker continues to face brand damage.
00:09The slump comes despite total EV sales in Europe rising 28% as consumers seek affordable Chinese manufactured alternatives.
00:19Jim Seker is president of the Institute of Motor Industry at Loughborough University.
00:24Always a pleasure having you on the show, Jim.
00:26Now, I need to ask you, is this more about Elon Musk, the man, than the attractiveness and price point of what it's got to offer?
00:35I think it's a combination of both.
00:38You know, the drop in sales year on year of almost 50% is just dramatic.
00:44And a lot of it was actually started by the reputational damage and his alignment with the far right.
00:50But there is, you know, it's almost like a perfect storm against Tesla that you've got emerging brands, the old legacy manufacturers like Volkswagen, Renault, Volvo, et cetera, are people who are introducing new products.
01:04Plus the Chinese with especially BYD and SAIC being very strong players now that the product is excellent.
01:12And basically Elon Musk is facing a big challenge.
01:15I think the most interesting one is in the UK because the UK was very slow when the downfall started.
01:23The UK stayed fairly stable with Tesla.
01:25But come April, there was a drop year on year of 62%, which suggests that basically company car policy in the UK is moving against Tesla.
01:34You know, ballrooms are going, we don't want to be associated with this type of reputation of the far right and therefore taking Tesla off their company car lists.
01:43So let's talk about the competition that's on its heels.
01:46Let's start with China.
01:47China's BYD registered more new cars than Tesla in April.
01:51I mean, is that because of price, like how BYD is selling its entry level car?
01:56I think it's 75% less than the cheapest Tesla.
02:00Or again, do other factors come into play?
02:03I think it is the improved product quality from BYD.
02:06You know, when they first came to Europe, was it 10, 12 years ago, they launched a vehicle and it looked like a battery on wheels.
02:13Now this is a sophisticated vehicle.
02:15It's got, you know, the whole range is very strong and therefore they are a major threat to most players, including the legacy ones, but especially Tesla, that basically have got a very tired product range in Europe at the moment.
02:29They haven't launched a new car in product in Europe since 2021.
02:33And what about those legacy European car makers that you've been mentioning?
02:38Are you saying they're no longer idling in the EV slow lane?
02:43I think they've definitely accelerated.
02:46And along with, you know, the hybrid cars and the EVs, their combination of those two together are very strong.
02:54And therefore, because people know the brand, the brands haven't been tarnished by Elon Musk.
03:00And also, they're not new brands like the BYDs and the SAICs of this world.
03:05Therefore, they do have a position and that position is being strengthened by a decent product coming on the market.
03:12This industry has many twists and turns.
03:14It's fast changing.
03:15How do you see the next two to three years shifting gears?
03:21I think there's going to be an increasing amount of competition coming from China.
03:27I think that's going to be a factor.
03:29I think a lot will hinge on tariff barriers that are put up if they think this unfair competition.
03:35Maybe one or two European countries would view the subsidies and maybe the cheap workforce in China, etc.,
03:42that type of thing being an unfair factor in the trade situation.
03:46So tariffs could come into play.
03:47But it's going to be a very intense competition in the EV market going forward because with good Chinese products,
03:54legacy companies actually having decent products as well.
03:58And Tesla, assuming that they are going to try and fight back,
04:01it's going to be a really interesting market over the next two or three years,
04:05especially if Tesla come out with a decent product because you always come back to the fact that the car is the star.
04:12You know, if the car is great, then people will be drawn towards it.
04:16Obviously, the combination of price is another factor, but it's how that works together.
04:21And at the moment, Tesla is losing.
04:23It's losing badly.
04:25BYD jumped 169% year on year this past year in Europe.
04:30So they're a very strong player.
04:32And with other Chinese manufacturers coming on board, I think it's going to be a really interesting time.
04:38Jim Sacker at the Institute of Motor Industry at Loughborough University.