The global electric vehicle (EV) market remains robust, with China experiencing record monthly sales in October, defying expectations after the termination of subsidies earlier in the year, according to Rho Motion, a market research firm. Despite subsidy cuts in various regions, EV sales exhibit significant growth, with China, Europe, and North America all contributing to the positive trend.
China’s resilient EV market
China, the world’s largest auto market, witnessed a 29% year-to-date increase in EV sales in September. Even after the conclusion of an 11-year subsidy scheme for EV purchases in 2022, local authorities in China continued offering aid, tax rebates, and subsidies to attract investments and support consumers. October’s figures indicate that the demand for EVs in China is reaching new heights, setting the stage for another strong year in 2023.
European challenges and resilience
In European markets, EV sales grew by 26%, despite challenges posed by the reduction of subsidies. The German market, particularly impacted after the removal of business subsidies in September, saw a decline in demand. Rho Motion emphasizes the significance of subsidies in Germany, where two-thirds of passenger car registrations are commercial. However, the overall European market remains resilient.
North America’s strong 2023
North America continues to exhibit a robust EV market, with a 78% year-to-date increase in sales. Tesla maintains a dominant position, capturing the majority of demand. Legacy automakers are cautious in scaling production, citing high-interest rates and a subdued market. Despite Tesla’s market share slipping to about 50% during the third quarter, the overall North American market remains strong.
The global EV market defies challenges, showing strength and resilience in the face of subsidy cuts. China’s remarkable performance, even without subsidies, indicates sustained demand, setting the stage for a promising 2023. In Europe and North America, challenges exist, but the overall market momentum for electric vehicles remains positive.