New Tesla Inc. (NASDAQ:TSLA) vehicle registrations in the European Union in the first eight months of 2024 dropped 15% as compared to the corresponding period last year as overall electric vehicle (EV) demand dropped, data from Europe's auto industry body showed on Thursday.

What Happened: Only 152,607 new Tesla vehicles were registered this year in the EU as of the end of August, as compared to 179,363 registrations in the corresponding period of last year, the European Automobile Manufacturers Association (ACEA) said.

Dearborn-based Ford Motor Co (NYSE:F) is not faring great in the EU either. In the eight months that ended August, Ford's new vehicle registration dropped 16% to 210,351 units.

However, Swedish automaker Volvo Cars, majority-owned by China's Geely, saw new car registrations rise 38% to 192,365 units while Chinese state-owned SAIC Motor also marked an 18% growth in registrations to 102,924 units.

Japan-based Toyota Motor (NYSE:TM) witnessed its registrations rise by 18% this year through the end of August to 571,574 units even as rivals including Stellantis (NYSE:STLA) and Hyundai (OTC:HYMTF) recorded a 3.2% and 4.3% dip in registrations, respectively.

German automaker Volkswagen (OTC:VWAGY) continues to be the best-selling car brand in the EU, with 1.9 million new vehicles registered in the first eight months of 2024, growing by 1.6% over the same period last year.

Why It Matters: Overall, 7.2 million new cars have been registered in the EU this year as of the end of August, marking a growth of 1.4% from last year.

Hydrid electric vehicles' popularity in the period rose, as depicted by the 21% rise in registrations. Battery electric vehicle registrations dipped 8.3% while diesel vehicle registrations dropped 9.7%.

On Wednesday, the ACEA took note of the drop in BEV market share in the EU. "European auto manufacturers, united in ACEA, therefore call on the EU institutions to come forward with urgent relief measures before new CO2 targets for cars and vans come into effect in 2025," it said.

EV adoption and production are hindered by a lack of charging infrastructure and a competitive manufacturing environment, it said, while adding that the current emission rules do not account for the profound shift in the geopolitical and economic climate over the past years.

The 2025 CO2 emission targets could result in multi-billion euro fines, production cuts, and job losses, ACEA said, while calling for the CO2 regulations for light-duty and heavy-duty vehicles to be reviewed next year.

"We stand ready to discuss a package of short-term relief for the 2025 CO2 targets for cars and vans, as well as a fast-track, comprehensive, and robust review of the CO2 Regulations for both cars and trucks, plus targeted secondary legislation, to get the zero-emission transition firmly on track and secure Europe's industrial future," it said.

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