China EV Sales Grow 37% in Q2 2023
According to Counterpoint Research's latest Global Passenger Electric Vehicle Tracker, Q2 2023 battery electric vehicle (BEV) unit sales grew by 50% YoY, driven by Western Europe, North America and nascent markets across Asia. However, China's economy failed to fully rebound the domestic market from a disappointing first quarter, resulting in 37% YoY growth which was well below the global average.
However, Chinese OEMs continued to dominate as they enjoyed scale advantages at home, allowing them to account for 56% of global unit sales – albeit the lowest Q2 in three years. “BYD Auto, GAC Group and Geely Holdings were three of the world’s top five passenger EV makers last quarter, yet none are household names in the west. They sell most of their cars at home,” notes Archie Zhang, Research Analyst, China. “Chinese OEMs play mainly in the compact or sub-compact space with performance and features reflecting this positioning. They might look sleek but they’re not a Tesla – at least not yet.”
According to report from IDC, in 2022, the worldwide Electric Vehicle market exceeded 10 million units, with a penetration rate of 14%. In 2023, it is expected to reach 14 million units, with a penetration rate of 18%. Overall, China and Europe are leading the market, whereas the United States and other developing regions have great potential.
The automotive industry is facing the most important transition period in its history — the replacement of the traditional internal combustion engine with more sustainable, energy-saving, and environmentally friendly technologies. Electrification, connectivity, autonomous driving, and ride sharing are the four key trends that drive this transition, resulting in the rapid growth of the global EV market. From supply side, governments take EV as a country strategy, providing subsidies to promote players developing their business.