Global Electric Vehicle Market Records 31% Sales Boom In 2023: Report

In a recent report by market research firm Rho Motion, global electric vehicle (EV) sales experienced a significant increase of 31% in 2023 despite a slowdown in growth.

What Happened: Sales of fully electric vehicles and plug-in hybrid vehicles (PHEVs) rose by 31% last year, a deviation from the 60% growth recorded in 2022, Reuters reported.

Charles Lester, data manager at Rho Motion, informed that the decelerated pace of growth aligns with the firm’s 30% growth projection for the global EV market.

Rho Motion forecasts a 25% to 30% surge in global EV sales for 2024. The firm also highlighted a record-breaking sale of 1.5 million units for December 2023. Of the 13.6 million EVs sold globally in 2023, 9.5 million were fully electric or battery electric vehicles (BEVs), while PHEVs accounted for the remaining sales.

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Despite the growth acceleration over the years, some automakers are wary about a potential slowdown in the European electric car market and other regions. Their concerns are rooted in the expectation that drivers might delay purchases in anticipation of more efficient, compact, and affordable models that could emerge within the next two to three years.

Why It Matters: This came as Cox Automotive predicts over 70 new EV models will enter the U.S. market within the next two years, signaling a possible EV “stampede.” This anticipated influx of new vehicles could significantly influence the EV market scenario in 2024 and beyond.

Meanwhile, the global EV market share reached 15% in 2023, with strong market share gains observed for EV companies in regions like the United States. The rise in EVs, spurred by discounts and increased production from new and existing automotive companies, is a positive indicator for the industry.

Furthermore, Chinese company BYD Co Ltd surpassed Tesla Inc in battery-only EV sales for the first time in 2023. This shift in the market could signal a new competitive landscape for the EV industry, with more companies vying for market leadership.

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