Tesla loses steam in Europe: what does it mean for Mexico and the automotive industry?

By: María Gamba

For years, Tesla has been synonymous with innovation and leadership in the global electric vehicle (EV) market. However, the current reality shows a significant change in the industry. According to the European Automobile Manufacturers Association (ACEA), Tesla's sales in Europe recorded a drop of40% in Julyand accumulateeight consecutive months of decline. Meanwhile,BYD, the Chinese manufacturer, has achieved growth exceeding225% in the same period, establishing itself as a strong competitor and, in some countries, even surpassing Tesla.

This phenomenon is not isolated: it responds to a combination of factors that are transforming the global automotive market. And Mexico, as a key country in the production and export of automobiles, is not exempt from the effects of this trend.

Why is Tesla losing ground in Europe?

Analysts point to three main causes:

1. More aggressive competition

BYD and other Chinese manufacturers have bet oncompetitive prices and advanced technologies, such as ultra-fast charging and autonomous driving functions, which today surpass some of Tesla's features. These innovations not only win over consumers, they also pressure Tesla to accelerate the launch of new affordable models.

2. Lack of renewal in the portfolio

Tesla has not launched a model for the mass market since 2020 (Model Y), which has caused its options to be limited compared to the variety offered by traditional and emerging brands.

3. Reputation affected by political decisions

Elon Musk has generated controversy in Europe due to his support for far-right political parties. This has resulted ina negative consumer reaction, directly affecting Tesla's image and demand.

The global impact and its connection with Mexico

Tesla's fall in Europe might seem like a distant problem, butin reality, it reflects a trend that will reach Latin America and, particularly, Mexico. Our country is not only one of the main exporters of vehicles in the world, but it is also attractingsignificant investments in electric mobilityas part of the nearshoring phenomenon.

So, what can this mean for Mexico?

• New players in the automotive industryWith Tesla losing leadership, Chinese manufacturers could increase their presence in the Mexican market. BYD has already announced plans to expand in Latin America, and Mexico is the ideal gateway to the United States.
• Transformation in the supply chainThe logistics chains that today revolve around Tesla could be adjusted to serve other manufacturers, which will implynew routes, different transit times, and greater integration with Asian suppliers.
• Opportunity to strengthen the national automotive ecosystemIf Mexico manages to adapt quickly, it could become a hub not only for assembly, but also for innovation in electric components and batteries.

Logistics: the great differentiator in this transition

The arrival of new manufacturers and the growth of the EV market demandmore sophisticated logistics solutions. We are talking about:

• Specialized transport for sensitive components such as batteries.
• Multimodal strategies to reduce costs and delivery times.
• Warehouses adapted to dangerous or high-value goods.

In this context,Control Terrestre is positioned as a strategic partner for the automotive industry. Our services are designed to adapt to the challenges posed by the transition to electric mobility: from the integral management of cargo to the optimization of the logistics chain for companies operating in a highly competitive environment.

Challenge or opportunity for Mexico?

Tesla's collapse in Europe does not mean its disappearance, but it does mark a profound change:there is no longer an absolute leader in the electric vehicle market. For Mexico, this translates into:

• Greater competition for foreign direct investment.
• Increase in demand foradvanced logistics infrastructure.
• Need for strategic alliances to serve new trade flows.

Companies that know how to anticipate these trends and adapt their processes will emerge stronger.

Do you want to prepare your company for this transformation?

InControl Terrestrewe offercustomized logistics solutions for the automotive sector and other key industries. Our commitment is to help you reduce risks, optimize costs, and ensure the continuity of your operation in a constantly evolving market.

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