CHART: PHEVs Power Up Global EV Sales to an 18% YoY Growth in Q1 2024
The plug-in hybrid electric vehicle (PHEV) emerged as the new go-to option in the EV market in the quarter.
- PHEVs grew 46% YoY in Q1 2024, eclipsing BEV's 7% YoY growth
- Tesla rose back to the number one position in BEV sales with a 19% market share
- China continues to lead in the global EV market, boasting a staggering 28% YoY growth
In Q1 2024, the global passenger EV market saw a healthy 18% year-over-year (YoY) growth, but a closer look at Q1 2024 data reveals a rather fascinating story.
The electric vehicle (EV) market is experiencing a surprising shift, and the unassuming plug-in hybrid electric vehicle (PHEV) is the driving force, emerging as the new go-to option.
According to a Counterpoint report, PHEV sales soared by a staggering 46% YoY, completely eclipsing the more modest 7% YoY increase for battery electric vehicles (BEVs) in Q1 2024. This dramatic shift signals a potential turning point in the EV landscape, one driven by a potent mix of affordability and a familiar friend – the gasoline engine.
To answer the "What's fueling the PHEV surge?" question. PHEVs generally boast lower manufacturing cost compared to BEVs, allowing automakers to offer them at competitive prices. But the real game-changer is the comforting presence of a gasoline engine, eliminating the fear of getting stranded on a long journey with a depleted battery. This combination of affordability and range security is proving especially appealing to budget-conscious consumers. This is a factor traditional automakers are keenly aware of and are adjusting their BEV targets and prioritizing PHEVs.
In the segment, Chinese auto brand BYD emerged as the leader accounting for nearly one-third of global PHEV sales, followed by Geely Holdings and Li Auto. It also emerged as the biggest player in both BEV and PHEV sales as it achieved remarkable growth in exports, particularly in Southeast Asia (SEA).
In the BEV category, Tesla clawed its way back to the number one position in BEV sales with a 19% market share despite a 9% YoY decline. BYD Group and Volkswagen Group trailed closely, but only BYD managed positive growth (13% YoY) among the top three.
In terms of regional performance, China continues to lead in the global EV market, boasting a staggering 28% YoY growth in Q1. The US and Europe followed closely behind, but the US market saw a slower 2% YoY increase, hinting at a potential market saturation in these developed regions.
Looking ahead, analysts predict the continued adoption of PHEVs over their BEV counterparts until automakers develop strategies to reduce BEV manufacturing costs allowing them to offer competitive prices to a price-sensitive mass market.
They also pointed to continued growth for the EV market in 2024. However, there are signs of a potential slowdown, with annual growth possibly dipping below 20%.
Emmanuel Oyedeji
