- China hits a milestone with over one million EVs sold in August, showing 33% growth from last year.
- For the first time, European EV growth turns negative, due to subsidy cuts and trade restrictions.
- Overall car sales in China fell, with owners of ICE cars given subsidies to switch to EVs or hybrids.
While the slowdown in EV sales growth has caused concern in the West, China continues to post positive results. According to a recent report, China has become the first country in the world to record over a million EV sales in a month, set in August. China’s EV growth is so far up 33 percent compared to last year.
Meanwhile, in Europe, growth has turned negative for the first time, with the EU and the UK EV landscape recording -4 percent. The contraction in growth is attributed to several factors, including nations such as Germany ending their subsidies, while the EU’s trade restrictions imposed on Chinese EVs will likely have impacted things, too.
Read: EU Trims Tesla, Geely Tariffs Again, But China Wants Talks To Solve Dispute
Figures reported by research house Rho Motion show that global demand for EVs continues to grow, with 9.8 million battery-powered cars being sold so far in 2024 and growth up 20 percent Year To Date (YTD) as of August. The US and Canada’s nine percent growth in EV sales is considered “steady,” according to the report, but its future trajectory may depend on the outcome of November’s presidential election.
China’s EV Sales Up, Overall Cars Down
While China’s unabated demand for EVs continues, it doesn’t paint the full picture of the Chinese passenger vehicle market. In August, data from the China Passenger Car Association (CPCA) showed that overall sales of all engine types had fallen by 1.1 percent, standing at 1.92 million.
According to a report from Reuters, sales of New Energy Vehicles (NEVS), which include all-electric and plug-in hybrid models, were helped by subsidies for drivers trading in more polluting vehicles. Those who opt to trade in their ICE vehicles for an NEV are eligible for as much as 20,000 yuan ($2,800). For those not yet ready to jump to EV or Plug-In Hybrid power, a separate subsidy of 15,000 yuan ($2,100) is offered to trade in fossil-fuel-powered vehicles for something of a smaller engine capacity.
Sales of NEVS increased by 43.2% to account for a record 53.5% of total passenger car volume. However, with many of these being trade-ins, the figures reflect waning consumer confidence, with fewer first-time car buyers reported.
But Rho Motion Data Manager Charles Lester expects China’s demand for EVs to continue its upward trajectory. “China surpassing one million EV sales in a month is just the beginning,” said Lester. “We anticipate this milestone to be reached multiple times before the end of the year as sales typically surge in the latter half of the year.”
