The Tesla Model Y was the best-selling car across Europe in 2023, clocking more than 250,000 registrations.

It's the first time both a non-European model and an electric model have led the rankings, according to data from Jato Dynamics.

Felipe Munoz, global analyst at JATO Dynamics, said: “The soaring popularity of the Model Y and price cuts across its range helped Tesla record its largest market share since arriving in Europe. Tesla has the right product in the right place at the right time.”

The Tesla Model Y was named Best Company Car 2024 by Parkers. In the UK market it was the best-selling electric vehicle (EV) in 2023 and the best-selling car in the true fleet market.

A total of 12,792,151 new cars were registered in 2023, across Europe, marking a 14% increase on the 11.25m units registered in 2022.

Munoz said: “Europe’s automotive market appears to be normalising. Supply chain issues are now largely under control, and consumers have become accustomed to waiting longer to receive new vehicles. Despite this, it is unlikely we will see volumes surpass the 15 million units recorded in 2019. Purchasing a vehicle has become more expensive, and attitudes to ownership continue to change."

Growth was driven by strong demand for new vehicles in markets including the UK, France, Italy, Spain, Belgium, Portugal, Croatia and Cyprus. However, the impact of high interest rates could be seen in Germany, which remains the largest market for new vehicles in Europe.

Much of the growth in Europe’s new car market in 2023 was driven by EVs, which accounted for 15.7% of total market share with 2,011,209 units registered. This marks a new high for the category, almost equalling the 2,049,157 registrations of diesel cars.

“Although growth stalled in November and then fell sharply in December, incentives are continuing to support EV uptake across Europe. But when looking at the data by registration type, it becomes clear that incentives are only currently appealing to companies, fleets and rentals,” Munoz commented.

Europe's best-selling new cars in 2023:

1. Tesla Model Y
2. Dacia Sandero
3. VW T-Roc
4. Renault Clio
5. Peugeot 208
6. Vauxhall Corsa
7. VW Golf
8. Toyota Yaris Cross
9. Fiat 500
10. Skoda Octavia

Volkswagen Group held the largest market share in Europe in 2023, rising to 25.8% from 24.7% in 2022. Audi, Skoda, Seat and Cupra all gained market share last year – a result of their strong EV line-ups and attractive deals for older models such as the Audi A4, A1, and Q2 and the Seat Ibiza.

Skoda’s Octavia and Kamiq, Audi’s Q4, Seat’s Ateca and Cupra’s Leon also posted strong results. Despite growing its overall market share, registrations of the VW Golf only increased by 4%, while the T-Cross saw a 5% drop.

Volkswagen Group’s electric line-up performed well in 2023 with the ID.4 and the ID.3 in third and seventh place respectively in the BEV rankings. However, these models were outperformed by direct competitors including the Tesla Model Y and the MG 4.

In sharp contrast to Volkswagen Group, Stellantis recorded the biggest loss in market share in Europe in 2023, dropping to 16.6% – its second consecutive loss since its establishment in 2021 when it had a market share of 20.3%.