Popular Keywords
News
[News] Global EV Penetration Spurred by US and China Policies
According to the news from Chinatimes, Tesla, the leading electric vehicle manufacturer in the United States, achieved a record-breaking delivery volume of 466,140 units in the second quarter of this year. Meanwhile, Chinese electric car companies like NIO and BYD have made strides in the European market, increasing their sales market share from 4% in 2021 to 6% in 2022, and now reaching an impressive 8% in early 2023.
The Biden administration’s implementation of the IRA Act is expected to drive a significant increase in sales for Tesla and other EV manufacturers. It is projected that the annual growth rate for EV sales in the U.S. could potentially reach 49% this year. In China, the growth is mainly attributed to the continuation of the government’s policy of exempting consumers from purchase taxes. The estimated growth rate for Chinese EV sales this year is around 26%. In Europe, there is optimism for countries like Germany, France, and the UK, where EV penetration is currently only at around 20%. There is potential for a 37% increase in sales this year in these regions.
According to the market insider says the global EV market has witnessed fierce competition in 1H23, with major manufacturers engaging in price wars to capture market share. For instance, Tesla’s best-selling EV, the Model Y, sold 889,000 units in 1H23, accounting for around 49.38% of the total annual sales of 1.8 million units. BYD, the top-selling electric car manufacturer in China, sold 1.2556 million units in the first half of the year, achieving 41.85% of its annual target of 3 million units. Another emerging Chinese EV brand, Li Auto, also achieved a sales target rate of nearly 50% in 1H23.
Leading electric vehicle manufacturers globally, including Tesla from the United States and NIO and BYD from China, have successfully increased their sales through a series of price reduction strategies and aggressive expansion into international markets. While short-term price reductions might impact profit margins and stock prices, the long-term outlook is promising. As these manufacturers enhance their market share, potentially even achieving “super dominance” in the market rankings, the excess market share can contribute to their competitive advantage and long-term profitability, enabling them to tap into other revenue streams beyond high market share dividends.
The market forecast indicates that electric vehicle sales in 2023 could surge to 13.32 million units, representing a growth rate of over 30% compared to 2022. The driving forces behind this growth remain centered in the United States, China, and the European countries including Germany, the UK, and France. (Image credit: BYD)
