Battery electric and plug-in hybrid vehicles’ global sales grew by a whopping 31% year-on-year in 2023, Reuters reports, citing UK-based market research firm Rho Motion’s data. However, this growth rate indicates a decline from 60% in the prior year.
“The pace of growth is slowing, but that’s what’s expected in growing markets like this. You can’t double every year.”
Rho Motion Data Manager Charles Lester (via Reuters)
EV sales growth in 2023
Plug-in electric vehicles, including BEVs and PHEVs, reported a 31% YoY sales growth to 13.6 million units last year after hitting a monthly record of 1.5 million units in December 2023.
Of that total, BEVs accounted for an astounding 9.5 million units. It indicates a YoY growth of 27%, accounting for 70% of the market. Meanwhile, PHEVs took the remaining 4.1 million units.
In December alone, global plug-in vehicle sales hit a new high of 1.5 million units.
According to Data Manager Lester, the 2023 growth rate aligned with Rho Motion’s prediction of 30%. As for this new year, the research firm expects global EV sales to grow by 25%-30%.
Major markets’ performance
Interestingly, Europe’s all-electric vehicle market surged by an impressive 27% in sales. However, PHEV sales dropped by a notable 5% from the prior year.
The world’s largest auto market also increased its BEV by 15% sales, Green Car Congress reported. On the other hand, North America’s key markets, the US and Canada, surged by over 50%.
In addition, BEV sales nearly doubled in the rest of the world, particularly in Southeast Asia, India, and Latin America.
Demand concerns
Despite the continuous growth of the plug-in electric vehicle market worldwide, several players worry that sales in Europe and other key markets might suffer from slowing demand.
It is unsurprising, considering that most drivers tend to wait for the availability of more affordable and compact EV options.
However, the German government’s move to drop its electric vehicle subsidies may significantly reduce sales figures this year.
Likewise, France also narrowed down its Ecological Bonus as it seeks to exclude Made-in-China models. It is apparently part of its strategy to ensure that its local players remain competitive against their Chinese rivals.
All these said, there might really be a slowdown in electric vehicle sales in these markets this year.
On the other hand, the US Inflation Reduction Act will continuously boost EV sales in the country with up to $7,500 tax credits.
It would be really interesting to see how the global electric vehicle market would fare this new year and beyond, considering the new model launches previously announced by several established OEMs and startups.
