China’s 11-year subsidy scheme for electric vehicle (EV) purchases ended in 2022. However, some local authorities in China have continued to offer aid or tax rebates to attract investments and subsidies for consumers. As of September, EV sales in China, the world’s largest auto market, increased by 29% year-to-date.
The global EV market recorded a 34% growth in the same period. According to Rho Motion, China is entering the final two months of the year, which are seasonally high for vehicle sales. Rho Motion predicts that 2023 is set to be another banner year for China in terms of EV sales, despite the subsidy cuts.
In European markets, EV sales grew by 26%, where the cutting of subsidies has weighed on demand. For instance, business subsidies were done away with in Germany in September, which affected nearly two-thirds of passenger car registrations that are commercial. Rho Motion emphasized that subsidies are an important factor in Germany’s EV market. Tesla, Mercedes Benz, and Volkswagen have warned that high-interest rates and a subdued market in the region are putting customers off.
In North America, EV sales were up by 78% so far this year. Rho Motion said, “The North American market continues to have a strong 2023, with Tesla still taking the lion’s share of demand as legacy automakers temper ambitions of scaling production.” However, despite price cuts, Tesla’s market share slipped to the lowest on record at about 50% during the third quarter, according to a report by dealer services firm Cox Automotive in October.