Tesla Passed the Luxury Automotive Brands

Tesla has passed the luxury automotive brands. Electric vehicle manufacturer Tesla has reduced the market share of other vehicles. The shares of luxury car brands such as Mercedes, BMW and Audi in the Chinese market declined with Tesla's entry into the market. Mercedes Benz took the title of being the world's best-selling luxury car brand in 2020 by a small margin from BMW. However, German dominance in the Chinese automotive market began to decline. In a statement on Tuesday, BMW announced that its global sales decreased by 0.72 percent to 2.03 million vehicles. While Mercedes surpassed its arch-rival, Tesla entered the world's largest market. While Tesla, Nio and Li Auto started to attract attention in China, BMW, Mercedes and Volkswagen Audi have held 60 percent of the luxury vehicle segment for a long time. But last year German manufacturers lost part of their sales to electric vehicle manufacturers, even though they grew in the market. Piper Sandler & Co Analyst Alexander Potter said, “Historically almost untouched, German brands have begun to lose market share to Tesla and other luxury electric car manufacturers,” and stated that the situation will get even more difficult for BMW, Mercedes and Audi. On the other hand, German vehicle manufacturers are struggling against Tesla by increasing their number of electric vehicle models. Daimler is preparing to announce its EQA compact model this month. BMW plans to offer 25 models by 2023, doubling the number of all electric and hybrid models. In addition to these, although Mercedes surpassed BMW in average vehicle sales, it was only able to sell 193 thousand electric vehicles last year.     This article has contributions of Bloomberg HT.