China's electric vehicle sales are rising

China, the world's largest automobile market, ended an 11-year subsidy plan for electric vehicle purchases in 2022. However, some local governments continue to provide aid or tax rebates to attract investments and consumer subsidies. As a result, electric vehicle sales in China increased by 29% year-to-date as of September, outpacing the 34% growth of the global electric vehicle market in the same period.

Rho Motion notes that the last two months of the year are typically strong for vehicle sales in China. The firm highlighted the significance of the October figures, stating that demand for electric vehicles in China continues to reach unprecedented levels even after the subsidy cuts. According to the research company, 2023 is expected to be another exceptional year for China in terms of electric vehicle sales.

In Europe, although the reduction of subsidies has affected demand, electric vehicle sales have increased by 26%. This situation is particularly evident in Germany, where commercial subsidies were cut in September. Rho Motion points out that subsidies play a crucial role in the German market, as approximately two-thirds of passenger vehicle registrations are commercial.

Many automakers, including Tesla (NASDAQ:TSLA), Mercedes Benz (ETR:MBGn), and Volkswagen (ETR:VOWG_p), have expressed concerns regarding high interest rates and the stagnant market in the region, which they believe are discouraging customers.

Meanwhile, North American electric vehicle sales have increased by 78% this year. Rho Motion reports that the North American market continues to perform well in 2023 and that Tesla still accounts for the majority of demand. However, traditional automakers are adjusting their production scaling targets.

According to a report published in October by dealer services firm Cox Automotive, despite price cuts, Tesla's market share fell to a record low of approximately 50% in the third quarter. This decline in market share comes as other automakers expand their EV offerings and increase competition in the sector.

News Source: 12punto