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Tesla’s Model 3: Spain’s second most sold car amid price war

Tesla’s Model 3: Tesla is turning the tide after a 6.5% decline in sales in August, its best month ever in Spain. This September, Tesla has taken off by using promotional strategies, such as launching the Tesla Boost program; the American manufacturer offered discounts exceeding €3,000 on entry-level versions of the Model 3 and Model Y. This aggressive pricing strategy has worked, leading to a 400% increase in registrations for the company in Spain, with a total of 2,894 units sold in September. For the first time in its history, the Texas-based company placed one of its models among Spain’s top three best-selling vehicles.

The Model 3 became the second most popular car among Spanish consumers, with 2,221 units sold, marking a 4,254% increase compared to September of the previous year. This managed to invigorate a previously dormant market for the company. Teslas traditionally fare much better in richer locations in Europe, such as Norway or the Dutch market.

Following the August downturn, overall car sales in Spain rose by 6.3% in September, totalling 73,144 units, signalling a return to growth. Tesla’s electric vehicles face stiff competition from attractively priced Chinese alternatives, which are popular among Spanish consumers. Their electric model MG4 is available for as little as €17,000. In fact, this model has outperformed Tesla in sales during certain months over the past two years. As a result, the US-based company has been compelled to adjust its pricing strategies to maintain its market share.

In the first nine months of 2024, automotive deliveries also improved, rising by 4.7% to nearly 745,000 units (744,698 cars), according to recent data from industry associations Anfac, Faconauto, and Ganvam. Despite this annual increase, the Spanish market remains 23% below pre-pandemic levels.

Besides Tesla’s discounting strategy, another factor that helped September’s sales rebound was the recovery in private customer sales, which rose by 10.5% to 36,639 units, accounting for about half of the market share. Automotive brands can pocket more money from private customers as they tend to offer them fewer discounts than businesses and rental companies.

However, the price war will further tighten Tesla’s margins. In its last financial report, the carmaker posted its worst margins in five years as price cuts and capital expenditures in its AI projects weighed in.

Tesla’s Model 3: Spain’s second most sold car amid price war
Photo Credits: Unsplash – Tesla’s Model 3

Toyota tops the annual charts in Spain

This year, Toyota has kept its position as the top seller after leading in 2022 and 2023. The Japanese automaker shows no signs of slowing down, having registered 69,451 vehicles in Spain from January to September, reflecting a 16.2% growth (four times the market’s overall growth.) This performance solidifies Toyota’s lead over Volkswagen, which recorded 48,574 sales (-0.1%) and Seat, which followed closely with 48,187 units (4.4%).

As the annual sales race nears its conclusion, Toyota’s position appears set, while Volkswagen, Seat, and Hyundai’s competition for the remaining podium spots will likely heat up. The latter trailed closely behind Seat, with just 546 units separating them.

Strong Performers: Dacia Sandero and Tesla Model 3

In terms of the most popular models in Spain, the Dacia Sandero continues to top the charts, much like Toyota in brand rankings. The Sandero, an affordable small car, was the best-selling automobile in both the first nine months and September, with 2,649 units sold last month, a 93% increase. Following closely was the Tesla Model 3, with the Renault Clio taking third place at 1,662 units (76%). Between January and September, the Dacia Sandero led with 24,206 units sold, reflecting a 22.4% increase, significantly outpacing its nearest competitor, the Toyota Corolla, which sold 16,700 units (18.5%). The Seat Ibiza rounded out the top three with 16,280 units (32%).

Marc Cervera is a freelance journalist based in Barcelona, Spain, with over four years of experience contributing to leading Spanish and international media outlets. He holds a double degree in Journalism and Political Science from Universitat Abat Oliba and an MA in Political Science from the University of Essex. Marc has lived in the US, UK, Spain, and the Netherlands, and his work primarily explores economics, innovation, and politics.