Global Plug-in Electric Vehicle Market Growth Disparity

TapTechNews June 19th news, although the global plug-in electric vehicle market is expanding, the growth distribution is not balanced. In recent months, the three major markets - China, Europe and North America, have shown very different growth trends.

According to the data of electric vehicle research institute RhoMotion, in the first five months of this year, more than 5 million plug-in cars were sold globally, a 20% year-on-year increase, and the sales volume in May was 1.3 million units, also a 20% year-on-year increase. However, China is the main force behind this growth, with its sales increasing by 31% year-on-year from January to May, and only in May by 36%.

TapTechNews noted that the report pointed out that the sales in Europe (including the European Union, the European Free Trade Association and the UK) from January to May increased by only 4%, while the combined increase in the US and Canada was 5%. It is even more notable that the sales in the European market decreased by 9% year-on-year in May, while the US and Canada decreased by about 3%.

The market share of China's plug-in electric vehicle market is the highest, exceeding 50%, and the growth rate is the fastest, while the European and North American markets are smaller in scale and the growth has stalled. There are many reasons for this difference, such as the weakened subsidy policy in Europe and the severe economic situation, etc.

This year, as Europe imposes higher tariffs (up to 38.1%) on Chinese pure electric vehicles, and previously the US raised the tariff from 25% to 100% and cancelled the $7,500 federal tax credit for imported electric vehicles, the market situation has become more delicate.

RhoMotion points out that the increase in tariffs will make the prices of imported electric vehicles from China more expensive. If the car prices go up, it will not be conducive to the popularization of electric vehicles and may lead to the failure to achieve the set climate goals.