Dacia Sandero beats Tesla Model Y to become Europe's unexpected automotive champion

In a surprising turn of events, the Dacia Sandero, a budget-friendly internal combustion engine hatchback, is about to become Europe's best-selling vehicle of 2024. This victory comes at the expense of Tesla, which dominated the European market in 2023.

Sandero's rise to the top is no surprise. With a starting price of just $14,100, it is an attractive option for budget-conscious consumers. This compact, and no-frills hatchback is perfect for navigating European cities, and its fuel efficiency means it is almost as cheap to run as an EV. And no, you can't really blame electric cars for that, but we'll get back to that.

In the meantime, Tesla faced a number of challenges in the European market. Slashing prices and ramping up production at its Berlin plant didn't really help, and Tesla's sales have declined by 13.7% year-over-year. This can be blamed on increased competition from other EV manufacturers, reduced government incentives, and a general economic slowdown.

The European Automobile Manufacturers' Association (ACEA) has released its latest data that suggests Tesla's struggles are not indicative of a wider decline in the EV market. In fact, if we exclude Tesla from the equation, EV sales in Europe have actually increased by 1.3%. This means that Tesla's challenges are its own.

While Tesla's sales have faltered, other EV manufacturers have seen significant growth. BYD has experienced a 42% increase in sales compared to the same period last year. This growth is largely due to the lower prices of its EVs and the fact that last year, BYD wasn't really present in the European market.

Tesla is expected to release a refreshed version of the Model Y as early as January 2025. This updated model could revitalize Tesla's sales and return the company to the top of the European charts. However, with increasing competition from established automakers and emerging players like BYD, Tesla won't have an easy job this time.

Sandero's unexpected victory is not really that unexpected. It is a reminder that affordability and practicality are super important for car buyers. With home budgets tightening and subsidies for EVs gone and forgotten, people have no incentive to buy into the EV revolution.

It seems the initial shine is wearing off, and those people who wanted to jump onto the EV bandwagon, are already on it. The rest of the population has been left behind, waiting for cheap electric cars to materialize, and buying ICE-powered cars in the meantime. And that is purely because automakers went after the buyers who can splash out, rather than offer electric equivalents of Sandero. It feels like even the new Renault 5 might be too little too late. And all the trouble Volkswagen is facing? That's because they went all-in with $87,900 ID. Buzz and a $76,100 ID.7 while all people want is the $14,100 Sandero.

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