Globally, electric vehicle (EV) sales are thriving, with China reporting record-breaking monthly sales in October, even after discontinuing subsidies in 2022, according to market research firm Rho Motion.
In 2022, China concluded an 11-year subsidy program for EV purchases. Despite this, certain local authorities in China are still providing aid, tax rebates, and subsidies to attract investments and support consumers.
Robust Growth in China’s EV Market
As of September, EV sales in China, the world’s largest auto market, increased by 29% year-to-date. The global EV market witnessed a 34% growth during the same period.
Rho Motion notes that China is entering the final two months of the year, traditionally high for vehicle sales, indicating continued strength in the market.
Notably, October’s figures demonstrate that EV demand in China remains at record levels despite subsidy cuts. Rho Motion predicts that 2023 will be another remarkable year for China in terms of EV sales.
European EV Market Dynamics
In contrast, EV sales in European markets grew by 26%. Subsidy reductions affected demand, especially in Germany, where business subsidies were eliminated in September. Rho Motion emphasizes the significance of subsidies in the German market, where nearly two-thirds of passenger car registrations are commercial.
Major players such as Tesla, Mercedes Benz, and Volkswagen have expressed concerns about high-interest rates and a subdued market in Europe, impacting customer interest.
North America’s Strong EV Performance
North America has experienced a significant uptick in EV sales, up by 78% year-to-date. Rho Motion highlights the continued strength of the North American market in 2023, with Tesla dominating demand, while traditional automakers adjust production ambitions.
Despite price cuts, Tesla’s market share declined to its lowest point at around 50% during the third quarter, according to a report by Cox Automotive in October.
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