• China’s EV sales almost doubled in 2022 with 87% YoY growth.
• BYD led the market, followed by GM Group, Tesla, Geely Holding and GAC Group.
• China’s EV sales are expected to exceed 8 million units in 2023.

New Delhi, London, Beijing, San Diego, Buenos Aires, Hong Kong, Seoul – March 15, 2023

China’s passenger electric vehicle* (EV) sales almost doubled in 2022, growing 87% YoY, according to the latest research from Counterpoint’s Global Passenger Electric Vehicle Model Sales Tracker. EVs now account for one in four cars sold in China. Interestingly, the share of battery EVs (BEVs) in the country’s total EV sales decreased in 2022, with plug-in hybrid EVs (PHEVs) increasing their share to 24%. China was the second fastest-growing market among the world’s top 10 EV markets in 2022 in terms of sales. Japan was on top with a 119% YoY growth. Nevertheless, China accounted for nearly 59% of the global EV sales volume. Commenting on the market dynamics, Senior Analyst Soumen Mandal said, “China’s EV market is the most vibrant globally. More than 94 brands cumulatively offer over 300 models ranging from just $5,000 to over $90,000. Local brands command 81% of the EV market, among which BYD, Wuling, Chery, Changan and GAC are a few of the top players. China also has a wide range of EV start-ups, like Nio, Xpeng, Neta, AITO, IM Motors, Zeeker, Aiways and Livan, which are performing well and are giving strong competition to established foreign brands.”

Mandal added, “In China, Tesla experienced a nearly 5% YoY drop in its market share due to production halts in April and May 2022 caused by the resurgence of COVID-19. Although production resumed at full capacity in June, Tesla faced challenges such as the availability of a limited product mix, increased costs due to a difficult supply situation, competition from affordable options offered by EV start-ups, and domestic sentiment that hindered its efforts to solidify its position in the Chinese market. Meanwhile, BYD increased its market share by more than 11% YoY in 2022, with six out of the top 10 models in the Chinese market coming from the brand, compared to just three in 2021.”

In 2022, the top 10 EV models accounted for almost 45% of the total EV sales, a 3% decrease from 2021. This suggests that new start-ups are offering strong competition to established players. Further, in Q4 2022, the BYD Song surpassed the Wuling Hongguang MINI EV as the top-selling EV model, ending the latter’s eight-quarter reign in the market. Discussing the market outlook, Associate Director Brady Wang said, “We expect EV sales to exceed 8 million units in 2023. In January 2023, BYD raised its EV prices by $250-$900 due to the rising cost of raw materials and phasing out of EV purchase subsidies. Later, in February and following Tesla, BYD announced price reductions. The prices of the 2021 versions of the Han and Qin models were reduced by an average of $2,500. The prices of new BYD models were slashed by $860-$1,150. The phasing out of subsidies and the wealth of EV players can easily lead to a price war as brands fight for market share.” *Sales refer to wholesale figures, i.e. deliveries from factories by the respective brands/companies. *For EVs, we consider only BEVs and PHEVs. Hybrid EVs and fuel cell vehicles (FCVs) are not included in this study. The comprehensive and in-depth ‘Global Passenger Electric Vehicle Sales Tracker, Q1 2018-Q4 2022’ is now available for purchase at report.counterpointresearch.com. Feel free to reach us at [email protected] for questions regarding our latest research and insights. Background Counterpoint Technology Market Research is a global research firm specializing in products in the TMT (technology, media and telecom) industry. It services major technology and financial firms with a mix of monthly reports, customized projects and detailed analyses of the mobile and technology markets. Its key analysts are seasoned experts in the high-tech industry. Analyst Contacts Soumen Mandal Abhik Mukherjee Brady Wang Neil Shah    Peter Richardson Counterpoint Research [email protected] Related Posts

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