Global Electric Vehicle Sales Up 9% Jan-May Excluding China... Hyundai Grows 65% in North America

China Explores South American Market to Avoid Tariff Barriers

On March 6, visitors attending 'EV Trend Korea' held at COEX in Gangnam-gu, Seoul, are looking at an electric vehicle fast charger. Photo by Jinhyung Kang aymsdream@

From January to May, the global electric vehicle (EV) market excluding China grew by only 9%. While Tesla experienced a decline, Hyundai Motor and Kia ranked fourth. As countries strengthen their restrictions on China, Chinese automakers are expanding into markets such as South America, Australia, and Southeast Asia.

According to energy market research firm SNE Research on the 8th, the global EV deliveries excluding China from January to May reached 2.259 million units, marking a 9.0% increase compared to the same period last year.

By manufacturer, Tesla saw a 12.8% decline year-on-year due to decreased sales of its main models, the Model 3 and Model Y. In particular, a significant drop in Model 3 sales in the North American region was identified as the main cause of the decline. The Volkswagen Group, which includes Audi, Porsche, and Skoda, recorded a 2.1% growth rate compared to the previous year, securing second place. Volkswagen Group’s Audi Q4 e-tron, Q8 e-tron, and Skoda Enyaq models showed steady sales.

In third place was the Stellantis Group, which showed balanced strong sales of both battery electric vehicles (BEVs) such as the Peugeot e-208 and Fiat 500e, and plug-in hybrids (PHEVs) like the Jeep Wrangler 4xe and Grand Cherokee 4xe, achieving a 2.7% growth rate.

Hyundai Motor Group showed sales levels similar to the same period last year. Although sales of key models Ioniq 5 and EV6 declined compared to the previous year, Kona Electric and Niro EV showed strong sales, and global sales of the EV9 expanded. Hyundai Motor Group is expected to strengthen its position by launching the Casper Electric and EV3 equipped with batteries from HLI Green Power, its joint venture with LG Energy Solution in Indonesia.

Looking at regions, the European market, which accounts for more than half of the market excluding China, recorded a growth rate of 4.5%, showing a slowdown in growth. Volkswagen, BMW, and Hyundai Motor Group maintained sales levels similar to the previous year, but sales declines from Tesla and Stellantis slowed growth in the European region.

Geely Automobile’s Volvo EX30 successfully settled in the European market by entering the best-selling rankings immediately after its launch, and BYD is intensifying its European market penetration with competitively low prices.

The North American region was held back by Tesla’s downturn, but sales are expected to recover as the Tesla Model 3 Highland was re-included in the Inflation Reduction Act (IRA) subsidy program. While Tesla showed weakness, Hyundai Motor Group achieved about 80,000 sales in the North American market, marking approximately 65% high growth compared to the same period last year.

In the Asia region (excluding China), sales of Chinese companies BYD and SAIC Group surged in Thailand and South America, increasing by 58.1% and 103.3% year-on-year, respectively. Japan’s Toyota expanded sales centered on PHEVs with the successful launch of the new Crown model alongside the Prius.

SNE Research explained, "The electric vehicle industries of various countries are threatened by price-competitive Chinese EVs, leading to higher trade barriers." They added, "In response, Chinese EV companies are establishing local production facilities to bypass tariff barriers and are opening new sales channels in South America, Australia, and other regions." In particular, Brazil, the largest economy in South America, has seen a significant increase in imports of Chinese automobiles, drawing attention as a new emerging market.