China Strengthens Leadership in Global Electric Vehicle Market, CAM Report Shows

China has once again solidified its dominance in the global electric vehicle (EV) market, according to a recent report by the Centre of Automotive Management (CAM). This shift could soon lead to significant changes in the global manufacturer rankings, and Germany, once a leader in Europe, may see its top spot slip.

CAM’s analysis for the third quarter of 2024 highlights the strong momentum behind electric mobility worldwide, with China continuing to lead the charge. In the first three quarters of the year, China saw 4.1 million battery electric vehicles (BEVs) registered, marking an 18% increase compared to the same period last year. BEVs now account for 27% of all new vehicle registrations in China, with an additional 2.2 million plug-in hybrids (PHEVs) also hitting the roads. This brings the combined share of electric vehicles in the country—referred to as new energy vehicles (NEVs) in China—to 41.5% of all new registrations. In the third quarter alone, NEVs made up 52.7% of new vehicle sales, with more than half of all new cars being electric or plug-in hybrids.

The report paints a mixed picture for Europe. While markets like France (217,000 BEVs) and the UK (270,000 BEVs) saw growth of 6% and 13%, respectively, Germany’s electric vehicle market shrank. New BEV registrations in Germany fell by 29%, with only 276,000 units registered by the end of the third quarter. This is a sharp decline from last year’s figures, with electric cars making up just 13.1% of new registrations. In contrast, the UK is rapidly closing the gap and may soon surpass Germany as Europe’s largest BEV market.

CAM’s study director, Stefan Bratzel, emphasized that Germany’s EV market is at a critical juncture, urging for more political action to help revitalize the sector. “A time-limited purchase subsidy and better infrastructure for charging would provide a much-needed boost,” Bratzel noted.

Across the Atlantic, the U.S. market has seen moderate growth in EV registrations, though numbers remain relatively low. New registrations rose by 8%, reaching 946,000 units, with the BEV share climbing slightly from 7.4% to 8.0%.

In terms of manufacturers, Tesla continues to lead globally, with 1.29 million BEV sales by the third quarter of 2024, despite a slight decline of 2.4%. However, Chinese automaker BYD is rapidly catching up, increasing its sales by 11.5% to 1.17 million units. While Tesla’s numbers reflect slower growth in its home market, BYD’s success is driven by strong demand in China, where both BEVs and PHEVs are booming.

Notably, when BEVs and PHEVs are combined, BYD has already surpassed Tesla in total sales. While Tesla exclusively sells BEVs, BYD offers both BEVs and PHEVs, the latter of which has seen a surge in popularity. PHEVs now account for 42.6% of BYD’s sales, up from 50.2% the previous year. In the first three quarters of 2024, 2.2 million PHEVs were registered globally, a 30% increase over the previous year’s 1.7 million.

For German automakers, the numbers tell a mixed story. The Volkswagen Group sold 506,500 BEVs in the first three quarters of 2024, down 4.6% from last year. BMW, on the other hand, saw a 19% increase, selling 294,054 BEVs. Mercedes, however, experienced a downturn, with BEV sales declining by 22% according to the company, though CAM’s figures show an even steeper drop of 26.8%.

The future looks challenging for German automakers, as China’s dominance continues to grow. “China is not only the leading market for electric mobility but is also emerging as a major supplier of electric vehicles,” Bratzel explained. He added that many global manufacturers underestimated the rapid growth of electric mobility in China. The increasing number of competitive models from Chinese automakers, coupled with intense price competition, is placing significant pressure on traditional German brands.

As China extends its lead in the global EV market, manufacturers worldwide will need to adapt to the shifting landscape. The rise of Chinese EV makers and the country’s dominance in the industry are reshaping the future of mobility.

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