EV Sales in China Show Substantial Numbers post Subsidies Removal

The market research firm Rho Motion reported that despite the end of subsidies, electric vehicle sales are showing strong global growth, with China seeing record monthly sales in October. In 2022, China discontinued an 11-year subsidy program for electric vehicle purchases, however, certain local authorities are still providing support in the form of aid, tax rebates, and consumer subsidies to attract investments.

China's electric vehicle sales, the world's biggest auto market, saw a 29% year-to-date increase in September. According to Rho Motion, China is approaching the peak season for vehicle sales as it enters the last two months of the year.

"What's notable about October's figures is that EV demand in China continues to reach record highs even though the subsidies were cut ... 2023 is set to be another banner year for China in terms of EV sales," the market research firm said.

According to Rho Motion, the European market saw a 26% increase in EV sales despite a decrease in demand due to the removal of subsidies, particularly in Germany, where business subsidies were discontinued in September.

The market research firm stated that subsidies are a significant factor in the German market, with almost two-thirds of passenger car registrations being commercial.

Tesla, Mercedes Benz, and Volkswagen have expressed concerns about the impact of high-interest rates and a slow market in the region, which is discouraging potential customers. Electric vehicle sales in North America have increased by 78% year-to-date.

Rho Motion reported that the North American market is still performing strongly in 2023, with Tesla maintaining the majority of demand while traditional automakers are scaling back their production goals.