Electric Vehicle Sales Review Q1 2023

According to the Electric Vehicle Sales Review Q1-2023, the first quarter of 2023 saw a 24% increase in battery electric vehicle (BEV) sales across 19 analyzed markets compared to the same period in the previous year. However, this growth was lower than in the years before that, primarily due to a significant reduction in BEV sales growth in China, which has a substantial impact on global figures because of its dominant market position.

Published

May 2023

Industry

Electric Vehicles

Topic

Battery Electric Vehicle (BEV)

Author

PwC, Strategy&

Countries that have been followers rather than leaders in the electric vehicle (EV) revolution experienced higher BEV sales growth. For example, Turkey saw a 251% increase, Australia had a 158% increase, and India saw a 119% increase in BEV sales in Q1 2023 compared to Q1 2022.

In the United States, BEV sales recorded the highest increase at 64%, continuing its rapid growth trend over the past couple of years. The US surpassed full hybrid sales for the second time, with nearly a quarter of a million BEV sales in the first quarter.

The fleet market is expected to be a significant area of growth for BEVs in the future. However, to maximize this opportunity, original equipment manufacturers (OEMs) need to produce more electric equivalents of popular fleet models.

Source: Electric Vehicle Sales Review Q1 2023 | Strategy&

Europe

The top five European markets (France, Germany, Italy, Spain, and the UK) experienced a 26% growth in BEV sales in Q1 2023 compared to the same period in 2022. French BEV market growth was particularly significant at 49%, while Germany and the UK experienced slower growth rates of 13% and 19%, respectively. Reductions in incentives by contributed to the stalling of growth in Germany.

Germany reached a milestone of having more than 1 million BEVs on the road for the first time. German automakers face the challenge of catching up, especially in the volume market, in response to increasing protectionist tendencies and Chinese supremacy.

In Norway, BEV sales declined by 10% in Q1 2023, but still maintained the highest market share of 84.5% globally. The Netherlands and Austria saw the highest BEV sales growth among other European markets, with increases of 104% and 57%, respectively. PHEV sales declined in Norway and Sweden compared to Q1 2022.

Asia

In the first quarter of 2023, electric vehicle (EV) sales in China saw a 15% increase compared to the same quarter in the previous year. This growth is significant considering that total sales of all powertrains decreased by 7% during the same period. However, the growth in EV sales fell substantially compared to previous years. This decline can be attributed to the end of subsidies provided by the Chinese government at the end of 2022.

Japan’s EV market is primarily dominated by hybrids, which held a 53.6% market share in Q1 2023. BEV sales in Japan grew by 48% compared to Q1 2022 but represent a small market share of 1.6%.

South Korea experienced a 34% increase in BEV sales in Q1 2023 compared to the same period in 2022, with a market share of 8.4%.

USA

The US BEV market grew by 64% in Q1 2023 compared to Q1 2022. Government incentives, an expanding range of new models, and the development of charging infrastructure continue to drive BEV sales. BEVs have now surpassed hybrid sales for the second consecutive quarter. With the slowdown in plug-in hybrid electric vehicle (PHEV) sales, BEVs are on track to become the dominant force in the EV market.

Overall, while BEV sales growth in the first quarter of 2023 showed positive trends, there were variations across different markets and regions, influenced by factors such as government incentives, changes in subsidies, availability of attractive models, and the overall development of EV infrastructure.

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