Global Electric Vehicle Market Continues Strong Growth Despite Subsidy Cuts

The electric vehicle (EV) market is demonstrating robust global performance, particularly in China, where record-breaking monthly sales were reported in October, even after the termination of an 11-year subsidy scheme, according to market research firm Rho Motion.

Despite China discontinuing EV subsidies in 2022, some local authorities are still providing aid, tax rebates, and consumer subsidies to attract investments.

In September, EV sales in China, the world's largest auto market, surged by 29% year-to-date, contributing to the global EV market's overall growth of 34% during the same period.

Rho Motion notes that China is entering the seasonally high months for vehicle sales, indicating a positive outlook for the remainder of the year.

The market research firm highlights the remarkable aspect that EV demand in China is reaching unprecedented levels even after the subsidy cuts, predicting that 2023 will be another exceptional year for China in terms of EV sales.

Meanwhile, European markets experienced a 26% growth in EV sales, although the reduction of subsidies in countries like Germany, where business subsidies were eliminated in September, has impacted demand.

Rho Motion emphasizes the significance of subsidies in the German market, where nearly two-thirds of passenger car registrations are commercial.

In North America, EV sales surged by 78% year-to-date, with Tesla maintaining a dominant market share.

Rho Motion notes that the North American market is robust in 2023, with Tesla leading demand, while traditional automakers are adjusting production ambitions due to high interest rates and a subdued market.

Despite Tesla's continued strong presence, its market share dipped to a record low of around 50% in the third quarter, as reported by dealer services firm Cox Automotive in October.

The report highlights the challenges posed by high interest rates and market conditions, impacting customer preferences in the competitive EV landscape.

Arsheeya Bajwa / Reuters