Electric cars pose threat towards gas-based automobiles’ market share in 2022

22 Jan 2023

In 2022, electric vehicles achieved around 10% of the global market share for the first time, driven mainly by strong growth in China and Europe.

ID.4 - xe điện bán chạy nhất của Volkswagen, với 170.000 xe bán ra trong 2022 trên toàn thế giới. Ảnh: Volkswagen

While electric vehicles still make up a small fraction of total sales in the US, their share of the global market is becoming more significant, especially in Europe and China. The figure is increasing drastically as technology advances. The growth of electric vehicle sales is also in contrast to the overall auto market, with the impact of economic difficulties, inflation, and the disruption of production chains.

Global sales of pure electric vehicles are about 7.8 million units, up 68% from 2021, according to LMC Automotive and EV-Volumes.com auto sales research groups.

For the full year of 2022, pure electric vehicles account for about 11% of total sales in Europe and 19% in China. Including plug-in hybrids, the market share of electrified vehicles sold in Europe increased by 20.3%.

The US is lagging in electric vehicles sales. In 2022, automakers sold 807,180 fully electric vehicles in the US, and its market share reached 5.8% compared to 3.2% in 2021. Tesla is still the dominant for now, but other brands are closing the gap with more electric car models launched in a short timeframe.

In Germany, Europe’s largest auto market, electric vehicles accounted for 25% of new car production in 2022, according to VDA. In December 2022, more electric cars were sold than internal combustion engine cars.

Total new car sales fell about 1%, to 80.6 million vehicles, according to LMC. In which, China increased by 4%, while the US and Europe both decreased by 8% and 7%, respectively. This was mainly due to the slowdown of the global economy, rising energy costs, disruptions to energy production, supply chain disruptions, and the conflict in Ukraine.

BMW is one of many to see the sales growth of plug-in cars while its total market sales decline. Specifically, BMW’s new car sales fell 5%, but its electric car sales more than doubled compared to 2021.

Volkswagen – Europe’s biggest carmaker – says that total new car sales are down by 7% to 8.3 million units in 2022, but electric car sales grew 26% with 572,100 units sold. This figure includes products from sub-brands, including Volkswagen, Porsche, Audi, Skoda, and Seat.

Electric vehicle sales are mostly concentrated in Europe, but sales growth has been strongest in China and the US, according to Volkswagen.

Other automakers have similar results. Ford or Mercedes more than doubled their sales in electric vehicle in 2022, while overall business results declined.

European automakers focused on electric vehicle production and sales in their home markets while working to meet EU emissions standards. 2022 also began with many brands expanding their electric vehicle business into other key markets, especially China and the US.

In China, which accounts for about 66% of global sales of fully electric vehicles, domestic automakers are taking places of traditional Western brands and are beginning to expand into Europe and the US.

Globally, Tesla maintains the top spot in electric vehicle sales, followed by Chinese brands, BYD and SAIC, then Volkswagen.

In the US, Ford is the second largest electric vehicle company by sales, followed by Hyundai and Kia. Meanwhile, General Motors, Volkswagen and Nissan all lost their share of the electric vehicle market in 2022.

While electric vehicles show signs of increasing global adoption, analysts warn that in 2023, the situation could be difficult as economic burdens remain heavy for consumers, and incentives for electric vehicles are gradually reduced to complete elimination in some countries. The rise in electricity prices in Europe after the Ukraine crisis also reduced the advantage of electric vehicles over internal combustion engines.

Germany saw a wave of electric car shopping in the last days of December 2022, as consumers rushed to take advantage of incentives from the government before being cut back this year. From January 1, support programs with electric vehicles with a list price of about 43,000 USD, will be reduced to 4,900 USD from 6,500 USD.

Over the past few years, automakers, especially in Europe, have struggled to find key components, such as computer chips, to maintain production to meet market demand. The imbalance between supply and demand is the reason that automakers have reported profitable business in 2022 despite declining in sales.

Current difficulties cannot be solved in the near future. It is difficult for manufacturers to keep prices high with new models because there will be fewer purchases. This can lead to a reduction in selling prices, which in turn reduces profits.

 

Source: vnexpress.net

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