Tesla has historically been having difficulties penetrating the German auto market, which is known for preferring German vehicles, but it looks like the Model 3 is helping Tesla pierce the market and shake establish automakers.
Germany is arguably the most important automotive market in Europe and it also happens to have the biggest automotive industry with companies like Volkswagen, Daimler, and BMW dominating the market.
These automakers are especially strong in the higher-end segments and it made it difficult for Tesla to penetrate the market with Model S, a premium sedan, and Model X, a premium SUV.
On top of that, Tesla has been having difficulties getting approved for electric vehicle incentives in the country and the company even claimed that they were intentionally being pushed out of the subsidy program by the auto industry working with the government.
With Model 3, Tesla has now a new opportunity to pierce the market and there are already early signs of the vehicle doing well in Germany.
The automaker only started deliveries last month in Europe and already delivered 1,000 Model 3 vehicles in the country.
It was enough to make the Model 3 the best-selling electric vehicle in the country — beating the Renault Zoe, BMW i3, and VW e-Golf, but it’s only the beginning.
Now, we learn that Tesla also has almost 5,000 Model 3 orders in Germany, according to a tally of buyers. Those are not just reservations but actual orders that should mostly be completed.
It would make the Model 3 the best-selling EV in the country by a wide margin and if orders keep coming in at that pace, it would also make it one of the best-selling premium sedans in the country.
With already over 1,000 deliveries and almost 5,000 orders, the vehicle is also going to help Tesla increase its sales in the country significantly.
For comparison, Tesla delivered only 1,900 vehicles throughout the entire year in Germany in 2018.
Model 3 buyers in German have access to up to 4,000 EUROs in incentives along with other tax benefits.
This is really important. If Tesla can make Model 3 a success in German automakers’ home turf, it would shake them up and encourage them to accelerate their own EV programs.
If Tesla can start beating some midsize premium sedans like the BMW 3 Series and the Mercedes C-Class in Germany, it would be a game changer.
Keep in mind that Tesla is still only selling the two higher-end version of Model 3 in Europe. Once the base versions make it to the market, sales should go up significantly.
BMW sells between 30,000 and 40,000 3 Series cars per year in Germany. It wouldn’t be impossible to beat. The C-Class is much more popular, but I see Tesla potentially stealing a few customers from both.
If that’s the case, I can BMW and Mercedes-Benz accelerating the electrification of those programs.
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