Global EV sales grow 50%, China market faces slowdown
Updated: Aug 31st, 2023
Image: IANS |
The global electric vehicle (EV) sales grew 50% (year-on-year) in the second quarter (Q2) this year, as China’s domestic market continued to dominate globally but growth failed to keep pace with other major markets, a report showed today.
Chinese market slowed down, but companies dominate
Chinese EV companies continued to dominate as they enjoyed scale advantages at home, allowing them to account for 56% of global unit sales, albeit the lowest Q2 in three years, according to a global technology market research firm.
“BYD Auto, GAC Group and Geely Holdings were three of the world’s top five passenger EV makers last quarter, yet none are household names in the west. They sell most of their cars at home,” notes Archie Zhang, research analyst, China.
Market outside China leans to luxury
The trend outside of China has been biased towards the more premium executive segments, with the majority of passenger EVs sold being bigger, pricier, and often more luxurious.
“Tesla is obviously a big influence, but increasingly Hyundai, Kia, Volkswagen, BMW, and Mercedes are moving the needle in premium,” said Soumen Mandal, senior analyst for automotive.
Modern EVs require advanced chips
With modern EVs demanding up to 3-4 times more advanced chips and other hardware components like cameras, sensors, power-controllers, batteries and the like, sourcing and securing supply for these components is equally critical to manufacturing EVs to unlock advanced experiences, the report noted.
“As computing requirements grow exponentially, so too will chip intensity per vehicle. This could have big implications on semis demand as EVs ramp over the next few years,” said Brady Wang, author at the market research firm.
(Source: IANS)
-Edited for style
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