Global EV Sales Reach Record High Despite Subsidy Cuts

In major EV markets including China, Germany and North America, EV sales have seen unprecedented growth this year

Despite subsidy reductions in strong markets such as China and Germany, the global electric vehicle (EV) industry is growing. Right after the end of an 11-year subsidy program in 2022, China, the world’s largest car market, maintained record-breaking EV sales in October. EV sales in China have increased by 29% year so far, contributing to global sales of EVs for an increase of 34%. In contrast, despite subsidy cuts, European markets saw a 26% growth in EV sales, strongly powered by the sales in Germany. In comparison, EV sales in North America increased by 78%, mostly due to Tesla’s supremacy in the market share.

An increase in EV sales in China despite the end of subsidies demonstrates continued customer enthusiasm. Notably, local governments in China continued to provide help, tax breaks, and consumer subsidies, bolstering the market’s resilience. Europe experienced difficulties when subsidies were reduced, particularly in Germany, where the elimination of business subsidies in September affected two-thirds of passenger car registrations, primarily commercial ones. Meanwhile, North America had an astounding 78% increase in EV sales, with Tesla staying dominant despite a decrease in market share during the third quarter.

This market study conducted by Rho Motion highlights the worldwide electric car sector’s recovery in the face of subsidy decreases. Even after subsidy elimination, China’s record-breaking sales indicate persistent consumer enthusiasm riding on the back of continuous local government assistance. While the European market encountered issues as a result of subsidy reductions, the demand for EVs only went up, particularly in the commercial vehicle class. In contrast, North America had significant EV sales growth, mostly driven by Tesla. Overall, these patterns emphasize the necessity of government support and market strategies for long-term EV adoption, showing continuous market dynamism and the possibility for additional expansion in the worldwide electric vehicle sector.