Global Electric Vehicle Sales Show Resilience Despite Subsidy Cuts

By Editor


Market research firm Rho Motion’s latest report highlights the remarkable resilience of the electric vehicle (EV) market globally, particularly in China, Europe, and North America, despite subsidy reductions and changing market dynamics.

China’s Record-breaking EV Sales Defy Subsidy Cuts

In a surprising turn, China, the world’s largest auto market, witnessed record-high EV sales in October despite the cessation of an 11-year subsidy scheme for EV purchases in 2022. The continued growth, marking a 29 percent increase year-to-date in September, underscores sustained consumer interest in electric vehicles. Although national subsidies ended, certain local authorities continue to provide aid, tax rebates, and consumer incentives, contributing to the ongoing success of the EV market in China.

Rho Motion anticipates a strong finish to the year for China, traditionally marked by high seasonal demand for vehicles. The firm also predicts 2023 to maintain this upward trajectory, projecting another banner year for EV sales in the country.

European Market Faces Subsidy Challenges

Contrarily, the European market experienced a 26 percent growth in EV sales, yet subsidy reductions significantly impacted demand. Specifically, the withdrawal of business subsidies in Germany during September contributed to this decline, affecting nearly two-thirds of passenger car registrations that are commercial vehicles.

Legacy automakers like Tesla, Mercedes Benz, and Volkswagen voiced concerns over high interest rates and subdued market conditions, attributing these factors to customer hesitation.

North America Continues Impressive Growth

North America showcased an impressive 78 percent surge in EV sales this year. Tesla maintained its dominant market presence, although its market share dipped to approximately 50 percent during the third quarter. Despite offering price cuts, Tesla faced increased competition and challenges from traditional automakers entering the EV space.

Rho Motion remains optimistic about the North American market’s strength in 2023, despite legacy automakers cautiously scaling up production ambitions, Reuters news report said.

The global EV market’s resilience and growth underscore a shift toward sustainable transportation, even amid subsidy cuts and changing market landscapes, paving the way for an exciting and competitive future for electric vehicles worldwide.

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