New energy vehicles for export at Lianyungang Port, Jiangsu Province, China, on April 25, 2024.
Nurphoto | Nurphoto | Getty Images
Sales of electric vehicles have risen sharply this year, driven by growth in China and particularly strong demand for hybrid vehicles, according to report by Counterpoint Research.
The report, released on Monday, showed that global sales of EV units, including fully electric vehicles (BEVs) and hybrids, increased by 18% in the first three months of 2024 compared to the same period in last year.
Sales of hybrid vehicles, which have both electric and internal combustion engines, significantly outpaced those of fully battery-powered alternatives, growing 46% year-on-year. BEV sales were up 7%.
“The cheaper upfront cost of [hybrids] compared to [battery EVs] and the presence of a fuel tank that eliminated mileage concerns were among the main reasons for the high [hybrid] demand,” Counterpoint analyst Abhik Mukherjee said in the report.
The figures follow recent reports suggesting hybrid adoption is already outpacing that of all-electric vehicles amid concerns about the former’s low resale values and the possibility that current BEV technology could soon become obsolete.
“I buy at an average price [hybrids] is a more logical choice for consumers as their prices are comparable or lower than most [battery electric vehicles]”, the report says.
China increases the lead
Chinese companies have been a huge beneficiary of the surge in demand for electric vehicles, especially firms that sell both BEVs and hybrids.
According to Counterpoint, electric vehicle sales in China jumped 28% in the first quarter of 2023 on the back of an ongoing price war that has reduced costs for consumers.
The country’s biggest electric car maker, BYD, saw sales of hybrid vehicles rise 7 percent in the first three months of this year, accounting for nearly a third of the global hybrid market, followed by Geely Holdings and Li Auto.
Electric vehicle sales in the United States are second in the world, followed by Europe. But while overall U.S. EV sales rose 2%, those of battery electric vehicles fell 3% in the quarter.
Tesla, the leading electric car maker in the US that makes only BEVs, saw sales fall 9% in the first quarter on a year-over-year basis. It was still in the top position globally in BEV sales in Q1 2024, controlling 19% market share. BYD and Volkswagen have 15% and 6% respectively.
Among the top three BEV makers, only BYD registered growth, with sales jumping 13 percent, while Tesla and Volkswagen’s sales fell 9 percent and 4 percent, respectively, the report said.
BYD’s strong performance comes as the company aggressively expands globally. According to the report, the company exported almost 100,000 EVs last quarter, a 152% year-over-year increase, driven mainly by shipments to Southeast Asia.
Liz Lee, associate director at Counterpoint, said BYD’s remarkable exports highlighted growing global demand for electric vehicles, including hybrids, with the market “poised for significant growth”.
“[Y]Moreover, signs of a slowdown are emerging and annual growth could fall below 20%,” she added, noting that companies such as Tesla are facing declining interest in BEVs.
A Gallup poll found in April that less than half of U.S. adults — 44 percent — said they were seriously considering or would consider buying an electric car, down from 55 percent in 2023. Meanwhile, the share of those who don’t want to buy an electric car rose to 48% from 41%.
Other headwinds for the market could include an increase in protectionist measures in 2024, with the EU and US reportedly imposing new tariffs on electric car imports from China.
https://www.cnbc.com/2024/05/14/china-drives-ev-boom-this-year-amid-strong-demand-for-hybrid-vehicles.html
