Chinese Brands Dominate as Global NEV Sales Surge in Q2
Global sales of New Energy Vehicles (NEVs), including battery electric vehicles (BEVs), plug-in hybrid electric vehicles (PHEVs), and fuel cell vehicles (FCVs), surged by 24.2% year-on-year in the second quarter of 2024, reaching 3.769 million units, according to TrendForce.
Despite maintaining its position as the BEV market leader, Tesla saw a 4.7% decline in sales compared to the same period last year. The company introduced price cuts and incentives to boost demand in key markets like China and the US. However, Chinese brand BYD, with its strong BEV sales and dominant PHEV performance, surpassed Tesla in overall NEV market share. BYD's PHEV market share reached over 36% in Q2, and the company shipped over 100,000 NEVs, including BEVs, overseas during the quarter.
Global BEV sales reached 2.328 million units in Q2, representing an 8% YoY increase. Volkswagen, SAIC-GM-Wuling, and BMW rounded out the top five BEV sellers, with minimal differences in market share. NIO experienced a significant surge in sales, achieving a 144% YoY increase and reclaiming the 7th position. Zeekr, ranking 9th, benefited from a significant sales boost for its Zeekr 001 model thanks to a facelift and supportive Chinese policies encouraging NEV adoption in rural areas.
PHEV sales saw an even more impressive growth, reaching 1.439 million units in Q2, a 64.2% YoY increase. Chinese brands dominated the PHEV market, with BYD leading the pack at 36.1% market share. Li Auto, AITO, and Changan followed closely behind. While Volvo Cars and Mercedes-Benz took the fifth and sixth spots, BMW's PHEV sales remained flat year-on-year. Despite a decline in sales and ranking, Jeep remained the top-selling PHEV brand in the US, benefiting from a limited number of PHEV models currently eligible for federal subsidies.
TrendForce attributes the strong performance of Chinese brands, particularly in the PHEV segment, to the impact of China's NEV replacement subsidies. This newly introduced scheme, which doubles subsidies for scrapping vehicles and purchasing either petrol or NEVs, provides buyers of NEVs with a CNY 20,000 incentive. This policy, effective until January 10th, 2025, is expected to further boost sales and market share for Chinese brands in the coming months.
The rapid growth of the NEV market, particularly in China, presents a significant opportunity for Chinese brands to establish a strong global presence. As the industry continues to evolve, it will be interesting to observe how these brands navigate the challenges and capitalize on the opportunities presented by the global NEV market.
