European Market Remains Strong
Tesla Sales Continue to Decline
SNE Research announced on June 10 that the total number of registered electric vehicles worldwide, excluding China, reached 2,193,000 units, marking a 21.3% increase compared to the previous year.
By region, Europe saw a 26.2% year-on-year growth. The launch of new models such as the Renault R5, Stellantis e-C3, Kia EV3, and Hyundai Casper Electric drove the recovery in demand.
The North American market recorded only 4.0% growth. While GM, Ford, and Hyundai Motor Group are increasing their local production share thanks to the Inflation Reduction Act (IRA) tax credit benefits, policy uncertainty is rising due to the Trump administration's subsidy reductions and the consideration of additional tariffs.
The Asian market, excluding China, grew by 37.1% year-on-year. However, SNE Research assessed that the growth was limited due to the strong performance of hybrids and differences in policies among countries.
Japan is showing signs of shifting away from its hybrid-focused strategy, with Toyota and Lexus releasing new BEV models. India has set a target for electric vehicles to account for 30% of the market by 2030 and is working to improve its subsidy system and expand charging infrastructure. In Southeast Asia, Thailand and Indonesia are emerging as EV production hubs, and governments in the region are offering incentives such as attracting local factories and providing tax benefits.
By automaker, Volkswagen Group recorded sales of 374,000 units, a 71.0% increase compared to the previous year. Strong sales of its main models, including the ID.3, ID.4, ID.7, and Q4 e-Tron, drove this growth.
Tesla sold only 259,000 units, a 20.1% decrease compared to the previous year, due to declining sales of the Model 3 and Model Y. Sales dropped by 34.6% in Europe and 9.1% in North America, respectively.
SNE Research analyzed, "Tesla's production schedule for new affordable models is delayed by at least three months. While the company is also working on advancing its FSD software and expanding its subscription-based revenue model, CEO Elon Musk's political statements are damaging the brand image and affecting consumer trust."
Hyundai Motor Group sold about 189,000 units, an 11.4% increase compared to the previous year. The group demonstrated its competitiveness by surpassing Stellantis, Ford, and GM in certain segments of the North American market. Kia is strengthening its electric vehicle popularization strategy by unveiling the EV4 and the EV2 concept car for the European market.
SNE Research stated, "The electric vehicle market has entered a phase of complex competition, where not only eco-friendly competition but also region-specific transition strategies and geopolitical factors are intertwined." The firm added, "Considering both uncertainties and opportunities outside China, automakers will secure a strategic advantage through product diversification, policy flexibility, and localized investment strategies."
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