China has 58% share of the global BEV market, with the US at around 12%.
The global sales of passenger battery electric vehicles (BEVs) saw a 29% year-over-year (YoY) increase, in the third quarter of 2023. This was driven by Europe and the expanding Southeast Asia market.Â
China remained the top global market for BEVs, but its sales growth was only 11%, below the global average, due to economic challenges and stiff price competition. Despite this, Chinese brands marked a significant milestone by selling over 0.13 million BEVs internationally, a fourfold increase from Q3 2022. Tesla, BYD Auto, and Volkswagen AG were the leading BEV groups, with BYD Auto (excluding Denza) close to surpassing Tesla as the global leader in Q4.
China has 58% share of the global BEV market, with the US at around 12%. Germany, the third-largest market, saw over 60% annual growth. He highlighted the rise of BEV adoption in emerging economies like India and Southeast Asia, thanks to affordable options.Â
Despite a 63% year-over-year growth in US BEV sales in Q3, some automakers are scaling back EV investments, as consumers are hesitant to pay extra for BEVs. Ford postponed a $12-billion investment in EVs, and GM slowed down EV production, delaying new model launches and scrapping plans for sub-$30,000 EVs with Honda.
Annual BEV sales are expected to nearly hit 10 million in 2023. Although US sales are below expectations, they are projected to exceed 50% YoY growth. The decreasing cost of lithium-ion batteries and the development of alternative battery chemistries are set to improve BEV affordability.
Europe and the US are focusing on securing essential minerals for BEVs, reducing dependence on China. The EU’s anti-subsidy probe on China-made BEVs reflects the competitive pressures in the market, which are likely to intensify further.
