New Delhi, May 13 (IANS): Elon Musk-run Tesla has regained the top position in BEV (battery electric vehicle) sales in the first quarter (Q1) of 2024, despite a 9 per cent (year-on-year) decline, a new report showed on Monday.

Tesla takes the top spot in BEV sales with a 19 per cent market share in Q1, according to Counterpoint Research.

Among the top three OEMs (original equipment manufacturers), only BYD Group achieved growth with 13 per cent (year-on-year), while both Tesla and Volkswagen experienced drops of 9 per cent and 4 per cent (year-on-year), respectively.

According to the report, global passenger EV (BEV+PHEV) sales increased 18 per cent (year-on-year) in Q1 this year.

While BEV sales grew by a modest 7 per cent (year-on-year) during the quarter, PHEV (plug-in hybrid EV) sales grew 46 per cent (year-on-year).

"The cheaper upfront cost of PHEVs when compared to BEVs and the availability of a fuel tank that eliminates range anxiety were among the main reasons for high PHEV demand," said Research Analyst Abhik Mukherjee.

As per the report, Tesla and BYD have managed to trim their BEV manufacturing costs, allowing them to offer competitive prices.

This has put pressure on other automakers like Ford and GM which are struggling to reduce their manufacturing costs. While analysts believe the EV market is set for significant growth in 2024, there are also signs of a slowdown and annual growth could fall below 20 per cent.

"The levelling off of early-adopter interest suggests a shift in consumer dynamics to the mass market in the long term and a new phase of evolution for the EV industry," said Associate Director Liz Lee.