Global EV sales remain strong, China sees record monthly demand
What's the story
Electric vehicle (EV) sales remain robust worldwide, with China experiencing record-setting monthly sales in October despite the end of subsidies, according to market research company Rho Motion. Although China terminated its 11-year EV purchase subsidy program in 2022, some local governments continue to provide assistance or tax incentives to encourage investment and subsidies for consumers. The global EV market saw a 34% growth in September, with a 29% year-to-date increase in China's EV sales.
Details
The European market is experiencing slower growth
In Europe, EV sales experienced a 26% growth, with the discontinuation of subsidies impacting demand. Rho Motion highlights that in Germany, where business subsidies were eliminated in September, almost two-thirds of passenger car registrations are commercial. Tesla, Mercedes-Benz, and Volkswagen have cautioned that high interest rates and a sluggish market in the region are deterring customers from buying EVs.
Report
EV sales rose in North America
North American EV sales have surged by 78% this year. Rho Motion reports that Tesla remains the leading force in demand as "legacy automakers temper ambitions of scaling production." However, Tesla's market share slipped to its lowest ever at about 50% during the third quarter, despite price reductions, as stated in an October report by dealer services company Cox Automotive.
Insights
European consumers are eagerly awaiting better and cheaper EV models
European consumers are reportedly postponing EV purchases as they anticipate improved and more cost-effective models to become available within the next two to three years. High interest rates and a lackluster market have discouraged customers, with Volkswagen's EV order intake being half of what it was the previous year. Dealers and four global data research firms say that consumers remain skeptical about whether current EVs satisfy their safety, range, and price requirements.