(Reuters) - Tesla saw its sales volume in Germany fall by 42.5% in March, according to the German road traffic agency KBA, although sales of battery electric vehicles picked up overall.

KBA said on its website on Thursday that Tesla sold 2,229 cars in Germany in March, down 42.5% from year earlier. The number of Teslas sold between January and March 2025 dropped 62.2% to 4,935 units, compared with the same period last year.

By contrast, the total number of newly registered electric vehicles increased by 35.3% in March, KBA said.

On Wednesday, Tesla said its quarterly sales volume plunged 13% to the weakest in nearly three years, hurt by rising global competition, a backlash against CEO Elon Musk's political activities and by some customers waiting for a refresh to its highest-selling Model Y.

German Economy Minister Robert Habeck said in a press conference on Thursday that the brand had suffered.

"The perception is that the passion for Tesla has suffered greatly in recent weeks and months, which is perhaps a good opportunity for the automotive industry in Germany. So unexpectedly, there is also a gap in the market if they bring good, powerful cars to market," Habeck said.