Demand for EVs (including battery electric vehicles and plug-in hybrid electric vehicles) has continued to grow in 2022, with several new models already launched this year, reports Canalys.
While increasing fuel costs and government incentives have pushed market growth, supply remains drastically constrained, with common delivery wait times of many months. New EV order numbers are healthy today; however, economic uncertainty around the world will affect new EV orders in 2023, says Canalys.
China is the largest and fastest growing EV market in the world, Canalys analysts point out. In the first half of the year, 2.4 million EVs were delivered to customers in mainland China, equivalent to 26% of all passenger cars delivered there, against just 10% in H1 2021.
“EV sales in mainland China more than doubled in H1 2022 and it is now by far the biggest EV market. 57% of global EV sales were in Mainland China. With 118% year-on-year growth, it is the fastest-growing market as well,” said Jason Low, Canalys principal analyst. As market conditions improve, Low suggests EV sales should top 5 million by the end of 2022.
Chinese automakers BYD and SAIC are number one and two in sales, followed by Tesla with nearly 200,000 units sold in the country during the first half of 2022.
With big declines in the overall passenger car market, EV sales in Europe have lost momentum, says Canalys. Sales managed just 9% year-on-year growth in H1 2022. However, 1.1 million EVs were delivered to European customers, accounting for 20% of all passenger cars delivered, up from 16% in 2021.
“European markets, such as the Nordics, have the highest EV penetration in the world, and might even see signs of market saturation until a new wave of EVs is launched,” says Ashwin Amberkar, research analyst at Canalys. “Tesla holds the top two spots in Europe, with the Model Y SUV ahead of the Model 3 sedan. There have been no new EV launches in Europe to get close to the demand for the two Teslas.”
In comparison, the U.S. remains in catch-up position. Some 414,000 EVs were delivered to customers in H1 2022. However, EVs grew from 3% of new cars in H1 2021 to 6% of new cars in H1 2022, a rise of 62%, according to Canalys. EV sales in the U.S. benefited from the launch and first deliveries of electric pick-up trucks in during the first half of the year. The country now accounts for 10% of global EV sales.
“Despite the improved range of vehicle types and EVs from more brands, Tesla still accounted for almost 60% of sales in the U.S. in H1 2022,” says Chris Jones, VP and chief analyst at Canalys. “Popular car brands in the U.S., such as Chevrolet, Ford, Honda, Jeep, Nissan and Toyota, currently sell very few EV models between them. The sooner this changes, the better, and the U.S. EV share will grow.”