Global Electric Vehicle Sales Surge by 34% in October, Despite Market Predictions

Despite claims of a cooling market, global electric vehicle (EV) sales continued to grow last month. China, the world’s largest EV market, keeps breaking sales records despite the end of subsidies. According to market research firm Rho Motion, China’s EV sales in October increased by 29% compared to last year, setting a new record. Rho Motion predicts that 2023 will be another significant year for EV sales in China.

China’s leading EV manufacturer, BYD, continues to build momentum this year. In September, BYD sold 151,193 battery electric vehicles and a total of 431,603 units in the third quarter. Tesla sold 435,059 units in the third quarter.

Both Tesla and BYD have aggressively cut prices to stimulate demand. Despite the low prices, BYD recorded a profit of $1.42 billion in the third quarter. The total sales profit margin was 22.12%, the highest in three years.

Last month, the global EV market grew by 34% compared to the previous year. Double-digit EV sales growth was observed in the top auto markets. Despite recent subsidy cuts, EV sales in the European market increased by 26%. Although Volkswagen’s orders decreased by 50% compared to last year, the overall market situation is growing due to Chinese companies. Chinese automakers, including BYD, are expanding their presence in the European market by offering affordable EV models such as the Dolphin hatchback.

Rho Motion predicts that the North American market will continue to be strong in 2023 as legacy automakers reduce production scales and Tesla continues to thrive. According to Cox Automotive, battery electric vehicle sales exceeded 300,000 units for the first time in the third quarter, marking 13 consecutive quarters of growth. EV sales accounted for 7.9% of total U.S. auto sales in the third quarter, with Tesla maintaining its top spot. Tesla’s market share dropped from 62% in the first quarter to 50%.

However, Tesla’s market share is declining. On the other hand, Mercedes-Benz, Volvo, and Hyundai Motor Group are on the rise. Mercedes Benz accounted for 15% of Mercedes’ total U.S. sales, ahead of GM and Ford, which were around 3-4%.

Ford sold 29,620 units, and GM sold 20,920 units. Both GM and Ford are currently delaying production.

GM, Ford, and Volkswagen are warning that EV demand is slowing down. On the other hand, other manufacturers such as Hyundai Motor Group and Volvo expect this momentum to continue through new premium models launching next year. Start-up Rivian exceeded third-quarter expectations and adjusted its production targets upward. The company sold 15,564 vehicles in the third quarter, more than double last year’s figure.

Concerns about demand slowdown are due to the possibility of consumer budgets shrinking due to interest rate hikes. However, as many EV manufacturers have proven, EVs are still selling. Automakers like Tesla, Rivian, and Volvo, who made early efforts, are making profits. Despite short-term concerns, EV adoption is expected to continue to increase annually.