Model Y tops Q1 global sales as EV industry crosses key milestone

CAIRO, May 27 (Xinhua) -- On Friday (May 26), Tesla's official Twitter account tweeted, ‘Thanks to Tesla owners for making the Model Y the world's best-selling car in the first quarter of this year!’

Later, Tesla's official Weibo also said, ‘Model Y became the world's best-selling car in the first quarter of this year. Thank you to all the owners, old and new.’

It is understood that the rankings stated by Tesla were released by automotive media outlet Motor1 on Thursday (25 May). According to JATO Dynamics, cited by Motor1, the Tesla Model Y led the charts in the first quarter of this year with 267,200 units sold, an increase of around 69 per cent on the same period last year.

This is the first time an electric car model has topped the charts and is a milestone for the segment.The Model Y has made gains in all three of the world's major automotive markets, with continued strong performance in China, a 68 per cent increase in U.S. sales, and has also become the best-selling model in Europe.

It's worth noting that in August 2022, Tesla CEO Elon Musk introduced that the Model Y would be the best-selling car model in 2023. Given the Model Y's higher price tag at the time, the market thought the billionaire was being overly egotistical.

And ten days ago, Musk repeated this vision at the shareholders' meeting, at which point there was little doubt in public opinion.

Motor1's analysis suggests that Tesla's recent price cuts and global expansion have significantly boosted demand for the Model Y. Plus, the Model Y is both an electric car and an SUV, ‘a winning combination in the current market.’

And taking a closer look at the top five on the list, all four are Toyota models, with the exception of the Model Y. Motor1 analyses that the second-place Corolla has the advantage of being a truly global model, available in almost every country in the world.

In particular, the third-placed Hilux, a strategic pickup truck, has become the preferred choice of owners in emerging economies, which account for a fifth of global car sales and are a part of Tesla's expansion process that it has yet to address.

Overall, if Tesla can open up markets in emerging economies, the Model Y's sales potential is expected to increase even further. Musk mentioned last week that the new Mexican factory lays the foundation for the company to produce 2 million vehicles per year.

This means that the new factory can not only radiate the local U.S. and South American markets after its completion, but also the raw materials, supply chain, and finished products can circulate closely with the U.S. and Canada.