Global EV sales rise by 21 per cent in July, China witnesses massive jump

Global electric vehicle (EV) sales, encompassing both fully electric and plug-in hybrid vehicles, experienced a significant upswing in July, with a year-over-year increase of 21 per cent. This growth was primarily driven by China's robust performance, which exhibited its strongest growth of the year.

This positive trend occurred despite a decline in demand observed in the European market, according to a report released on Monday by market research firm Rho Motion.

The European Union's recent implementation of provisional tariffs on EVs imported from China is expected to have varying impacts on different manufacturers. Charles Lester, a data manager at Rho Motion, shared with Reuters that MG Motor, a subsidiary of China's SAIC Motor Corp, is likely to be the most severely affected by these new tariffs.

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In contrast, the impact on other major players in the EV market is anticipated to be less pronounced. Tesla, for instance, is expected to weather the tariffs more effectively due to its ability to manufacture vehicles at its Berlin factory.

Similarly, BYD, a Chinese EV giant, is predicted to face minimal consequences from the tariffs, primarily because its presence in the European market remains relatively limited at present.

Delving into the specifics of the global EV sales figures, July saw a total of 1.35 million units sold worldwide. Of this total, China accounted for an impressive 0.88 million units, representing a substantial 31 per cent year-on-year increase in that market alone. It's worth noting that plug-in hybrid vehicles (PHEVs) have shown particularly strong growth in China, with sales in the first seven months of 2024 surging by 70 per cent compared to the previous year.

BYD, which holds the title of both China's and the world's largest EV manufacturer, reported significant growth in its global sales for both battery electric vehicles (BEVs) and PHEVs. In the same seven-month period, BYD's BEV sales increased by 13 per cent, while its PHEV sales saw a remarkable 44 per cent boost.

The European market, however, presented a different picture. July witnessed a 7.8% decrease in monthly EV sales, bringing the year-to-date figures in line with those of 2023. Germany, which stands as the EU's largest EV market, experienced a more pronounced decline, with sales dropping by 12 per cent in the seven months leading up to July.

In North America, the United States and Canada collectively saw a modest increase in EV sales, with figures rising by 7.1 per cent in July.

Lester highlighted BYD's continued success in the PHEV segment, noting that the company's record-breaking sales of plug-in hybrids played a crucial role in its overall performance. He emphasized that BYD's large volume of PHEV sales significantly contributed to its strong market position.

Another emerging trend in the EV market is the growing popularity of range extender vehicles. These are essentially battery-powered hybrid cars that utilise an onboard generator for recharging, and Lester pointed out that they are selling in substantial numbers.

The European Union's decision to impose provisional tariffs on Chinese-made electric cars in July has resulted in varying duty rates for different manufacturers. BYD faces a 17.4 per cent tariff, while Geely and SAIC are subject to 19.9 per cent and 37.6 per cent duties, respectively, according to EU statements.

This comprehensive overview of the global EV market highlights the complex interplay of regional trends, regulatory measures, and manufacturer strategies shaping the industry's growth and dynamics.