Rho Motion, a market research firm now says worldwide electric-vehicle sales have continued to rise, with China reporting record monthly sales in October despite the removal of subsidies.
China stopped an 11-year subsidy policy for EV purchases in 2022, but some local governments have continued to offer incentives or tax breaks to attract investments as well as consumer subsidies.
In September, EV sales in China, the world’s largest vehicle market, scaled by 29% year-to-date in September. In the same period, the worldwide EV market grew by 34%.
According to Rho Motion, China is nearing the final two months of the year, which are often high for automobile sales.
“What’s notable about October’s figures is that EV demand in China continues to reach record highs even though the subsidies were cut… 2023 is set to be another banner year for China in terms of EV sales,” the market research firm said.
According to Rho Motion, EV sales increased by 26 percent in European markets where subsidy cuts have weighed on demand, such as in Germany, where business incentives were eliminated in September.
“This (subsidies) is an important factor in the German market as nearly two-thirds of passenger car registrations are commercial,” the company stated in a statement.
Tesla, Mercedes-Benz, and Volkswagen have all cautioned that high borrowing rates and a sluggish market in the region are discouraging customers. EV sales in North America have increased by 78% so far this year.
“The North American market continues to have a strong 2023, with Tesla still taking the lion’s share of demand as legacy automakers temper ambitions of scaling production,” Rho Motion said.