Daily Management Review

Strong EV Sales Globally, China Sets A Record For EV Sales Worldwide Even After Subsidies Expire


Strong EV Sales Globally, China Sets A Record For EV Sales Worldwide Even After Subsidies Expire
According to market research firm Rho Motion, sales of electric vehicles are still growing globally, with China posting record monthly sales in October even after incentives ended.
In 2022, China terminated an 11-year programme of subsidies for electric vehicle purchases; nevertheless, certain local governments have persisted in providing subsidies for customers together with grants or tax breaks to entice investors.
September saw a 29% year-over-year growth in EV sales in China, the largest car market in the world. Throughout the same time frame, the worldwide EV market grew by 34%.
According to Rho Motion, China is approaching the traditionally peak car sales months—the last two months of the year.
"What's notable about October's figures is that EV demand in China continues to reach record highs even though the subsidies were cut ... 2023 is set to be another banner year for China in terms of EV sales," the market research firm said.
According to Rho Motion, EV sales increased by 26% in European areas where the removal of business incentives in September had a negative impact on demand.
"This (subsidies) is an important factor in the German market as nearly two-thirds of passenger car registrations are commercial," the market research firm said.
Volkswagen, Mercedes Benz, and Tesla all issued advisories that the region's muted market and hefty borrowing costs are turning away buyers.
So far this year, EV sales in North America have increased by 78%.
"The North American market continues to have a strong 2023, with Tesla still taking the lion's share of demand as legacy automakers temper ambitions of scaling production," Rho Motion said.
Nevertheless, despite price reductions, Tesla's market share dropped to the lowest level ever recorded in the third quarter—roughly 50%—according to a survey released in October by dealer services company Cox Automotive.