Global electric vehicle (EV) sales rose 18% year-over-year in the first quarter of 2024, driven by a surge in plug-in hybrid sales (PHEVs), according to Counterpoint Research. While battery electric vehicle (BEV) sales grew modestly at 7%, PHEV sales skyrocketed by 46% YoY.
China remained the world’s leading EV market, boasting a 28% YoY growth. The US market saw a slower 2% increase, with BEV sales actually declining by 3%. This suggests a shift in consumer preference towards PHEVs in the US.
PHEVs Gain Traction Due to Lower Cost and Range Security
The report highlights the affordability and range security of PHEVs as key factors behind their rising popularity. PHEVs offer a gasoline engine alongside an electric battery, addressing concerns about the limited electric range experienced with BEVs. Additionally, analysts say competitive pricing for PHEVs is putting pressure on traditional automakers struggling to lower BEV manufacturing costs.
Tesla Regains BEV Lead Despite Decline, BYD Shines
Despite a 9% YoY decline in sales, Tesla reclaimed the top spot in BEVs with a 19% market share. BYD Group and Volkswagen Group followed closely behind. Notably, BYD was the only company among the top three to experience growth (13% YoY), showcasing their dominance in both BEV and PHEV segments. BYD also excelled in exports, particularly in Southeast Asia (SEA), with a massive 152% YoY increase.
EV Market Poised for Growth, But Signs of Slowdown Emerge
Analysts predict continued growth for the EV market in 2024, though the annual increase might dip below 20%. This suggests a potential shift from early adopter enthusiasm to a more mass-market focus in the long run. BYD’s strong export performance signifies the global appetite for EVs, including PHEVs. However, Tesla, reliant solely on BEVs, faces challenges like production delays and a maturing early-adopter market that initially fueled their sales.
