Global sales of fully electric and plug-in hybrid vehicles (PHEVs) increased by 13% in June compared to the same month in 2023, primarily driven by the booming Chinese market. Market research firm Rho Motion reported this growth, highlighting China’s significant contribution to the global electric vehicle (EV) market.
China’s dominance in the EV market
China accounted for over 60% of the total global sales, with strong performance from domestic automaker BYD playing a key role. The rising availability of electric vehicles in China has bolstered the market share of PHEVs in the first half of the year. Charles Lester, data manager at Rho Motion, noted that PHEV sales in China reached 0.86 million in June, marking a 25% year-on-year increase.
“China’s robust market dynamics and government support have significantly boosted EV sales,” said Lester. The strong domestic demand for PHEVs underscores China’s leading position in the global EV market.
Declining sales in Europe
In contrast to China’s growth, Europe saw a 7% decline in monthly EV sales, totalling 0.30 million. Countries like Finland, Ireland, and the Netherlands led these losses. However, Italy bucked the trend, recording a 34% increase in EV sales following the introduction of government incentives. These incentives played a crucial role in stimulating demand and reversing the downward trend observed in other European markets.
Modest growth in North America
In the United States and Canada, PHEV sales experienced a modest 6% increase, reaching 0.14 million in June. This growth indicates a steady but slower adoption rate compared to China. The North American market continues to show potential for expansion, driven by consumer interest in environmentally friendly alternatives and supportive government policies.
Surge in Brazil’s EV market
BYD’s sales in Brazil surged, contributing to a more than threefold increase in EV sales from June 2023. This remarkable growth highlights the potential of emerging markets in driving global EV adoption. Brazil’s growing interest in electric vehicles, fuelled by BYD’s expanding presence, underscores the importance of diverse regional strategies in the global EV market.
Adjusted growth forecasts
Despite the overall growth, Rho Motion has revised its forecasts for 2024, lowering expectations by 5% to 16.6 million electric cars sold this year. “The overall picture is that 2024 will not achieve the ambitious growth some had hoped for,” said Lester. The revised forecasts reflect the regional disparities and the cooling demand in some markets as consumers await more affordable models and opt for hybrid alternatives.
EU tariffs on Chinese EVs
Adding to the complexities of the global EV market, the European Union recently imposed tariffs of up to 37.6% on imports of electric vehicles made in China. This move, aimed at protecting the EU’s domestic EV industry, has escalated trade tensions with Beijing. The tariffs are part of the EU’s largest trade case yet, reflecting the growing economic and political stakes in the global EV market.
The global electric vehicle market continues to evolve, with significant regional disparities shaping the overall landscape. China’s dominance and robust growth stand in stark contrast to the declining sales in Europe and modest increases in North America. As government policies and market dynamics shift, the future of the global EV market remains both promising and uncertain. The industry’s ability to adapt to these changes will be crucial in driving sustained growth and innovation in the coming years.