PwC's strategy consulting group Strategy& has published the results of its Electric Vehicle Sales Survey, which examines electric vehicle trends. Strategy&, PwC's strategy consulting group, shared the results of its Electric Vehicle Sales Survey, which focuses on consumer preferences and sales trends in the global battery electric vehicle (BEV) market. The report analyzes the distribution of electric vehicle sales and the latest trends in the market, based on data compiled from 2023 countries, including Turkey, in the first quarter of 19.
The report, which reveals that the consumer interest in electric transformation in vehicle sales continues, draws attention to the fact that the end of subsidies applied to electric vehicles in China caused a sudden slowdown in battery electric vehicle (BEV) sales in the first quarter of 2023, which in turn slowed the global electric vehicle growth rate. The slowdown in growth in the Chinese market also seems to have a significant impact on global figures. The report underlines that the expectation that the subsidy applied to battery electric vehicles in China will end is an important factor that leads consumers to intensify their battery-electric purchase vehicle preferences in the period until the end of 2022.
Underlining that the commercial fleet segment will be the most important growth area for battery electric vehicles, the report points out that manufacturers (OEMs) will need to accelerate the production of their electric counterparts of popular fleet models in order to make the most of this opportunity. It is noted that the limited number of attractive electric vehicle options offered in commercial fleet segments has a restraining effect on growth. It is noteworthy that the growth in battery electric vehicle sales is much higher than the others in countries that are not in the leading position in the development of rechargeable hybrid vehicles but support the growth.
The report reveals that BEV players have recently focused on making battery production permanently more affordable and sustainable. The report also includes the electric vehicle models that automobile manufacturers are preparing to offer to the market in the coming period.
Electric vehicle sales in Turkey increased by 2023 percent in the first quarter of 251
The Strategy& report, which also covers battery electric vehicle sales in Turkey, shows that the rapid growth in the market continues. The report also highlights Turkey's 40 percent additional customs duty for battery electric vehicles produced in China, among the important data regarding the market.
Strategy& Türkiye Leader Kağan Karamanoğlu made the following assessment about the research:
“Electric vehicle sales continue to increase year on year. In Turkey, in the first quarter of 2023, a 251 percent increase was recorded in battery electric vehicle sales compared to the same period of the previous year. In this increase, we observe the effects of the introduction of TOGG, the Chinese electric vehicle manufacturers' focus on Turkey, and the increase in consumers' interest in electric vehicles in the premium segment compared to previous years. Considering that the electric vehicle charging infrastructure that will develop as the number of companies licensed by EMRA to establish charging stations exceeds 120 and that the leading companies in the electric vehicle market will introduce their new models to Turkish consumers, the upward trend in sales can be expected to continue.”
BEV sales increased by 26 percent in Europe's top five markets
In Europe's five largest markets, France, Germany, Italy, Spain and the UK, battery electric vehicle sales increased by 2023 percent in the first quarter of 26 compared to the same period of the previous year. Significant growth in France's battery electric vehicle market increased by 2022 percent compared to the first quarter of 49, contributing greatly to the overall growth in the market. Growth in Germany and England fell to 13 percent and 19 percent, respectively. The removal of incentives in Germany at the end of 2022 is also seen among the reasons for the slowdown in the growth rate. In Germany, all incentives for plug-in hybrid electric vehicles were removed at the end of 2022. The report also draws attention to the fact that the number of battery-electric vehicles on the roads in Germany exceeded 1 million for the first time.
The Strategy& report also highlights that rising protectionist trends and China's dominance in this area mean that automakers in Germany need to catch up, especially in the high-volume market.
Looking at the European markets following the first five countries, it is emphasized that although the sales of battery electric vehicles in Norway decreased by 2023 percent in the first quarter of 2022 compared to the first quarter of 10, Norway represents the highest market share worldwide with 84,5 percent. The largest increases in battery electric vehicle sales in other European markets were recorded in the Netherlands and Austria, with 104 percent and 57 percent, respectively.
China is the largest volume BEV market
It is noteworthy that while the sales of battery electric vehicles in the Chinese market increased by 2023 percent in the first quarter of 2022 compared to the same period of 15, the sales of all power transmission mechanisms decreased by 7 percent in the same period. Although this picture in the market also points to an impressive performance, it is observed that the growth in BEV sales is largely below the level recorded in recent years.
In the Japanese electric vehicle market, which is predominantly hybrid vehicle sales, the market share of hybrid vehicles in the first quarter of 2023 was 53,6%. Battery electric vehicle sales, on the other hand, increased by 2022 percent compared to the first quarter of 48, albeit on a very low basis, with a market share of 1,6 percent.
In South Korea, one of the important markets of the Asian region, battery electric vehicle sales increased by 2023 percent in the first quarter of 2022 compared to the same period of 34. The share of the battery electric vehicle market was 2023 percent in the first quarter of 8,4.
Battery electric vehicle sales continue to grow rapidly in the US market
The US battery electric vehicle market grew by 2023% in the first quarter of 64, compared to the same period of the previous year. In the first quarter of 2023, approximately 250 thousand battery-powered electric vehicles were sold in the US market, which has continued its rapid growth trend in recent years. The report also draws attention to the fact that BEV sales in the US in the first quarter of 2023 surpassed hybrid sales for two consecutive quarters, and this is the second time such a situation has occurred. According to the report, battery electric vehicles are poised to completely dominate the entire electric vehicle market, as growth in sales of rechargeable hybrid electric vehicles in the US market has declined dramatically in recent years.
BEV sales in the US market continue to be supported by government incentives, an ever-expanding selection of models, and the continuous development of the charging infrastructure. The report also points out that there is a significant growth potential in the battery electric vehicle market share in the country, which has more than tripled in less than two years and reached 6,9 percent.
Decline in raw material prices may affect electric vehicle prices
Another point that the report draws attention to is the change in raw material prices. In the report, which draws attention to the fact that the cost of cobalt and lithium, the two main commodities used for battery production, has decreased recently, it is stated that the price of cobalt has decreased by more than half compared to the spring of 2022, and the cost of lithium has decreased by 2023 percent since January 20. The report, in which it is mentioned that these developments will contribute to the development of cheaper chemicals such as lithium iron phosphate (LFP), underlines the expectation that BEV vehicle prices will decrease accordingly.