ElectricVehicleSalesReviewQ22023ForesighttodrivetheindustryAugust2023Strategy&ThispublicationhasbeendevelopedincollaborationbetweenStrategy&,PwC’sglobalstrategyconsultingbusiness,alongsidePwCAutofacts’Automotiveindustryandfunctionexperts.Together,wetransformorganizationsbydevelopingactionablestrategiesthatdeliverresults.AtPwC,ourpurposeistobuildtrustinsocietyandsolveimportantproblems.We’reanetworkoffirmsin152countrieswithalmost328,000peoplewhoarecommittedtodeliveringqualityinassurance,advisoryandtaxservices.Findoutmoreandtelluswhatmatterstoyoubyvisitingusatwww.pwc.com.PwCreferstothePwCnetworkand/oroneormoreofitsmemberfirms,eachofwhichisaseparatelegalentity.Pleaseseewww.pwc.com/structureforfurtherdetails.www.pwc.com2Strategy&Executivesummary3TheBEVmarketincreasedbymorethanhalfitssizeacrossallanalyzedmarketsinoneyear52%BEVsalesgrowthacrossall20analyzedmarketsinQ22023fromthesamequarterlastyearInalmostallmajormarkets,BEVsalesgrewfarmorethanthetotallightvehiclemarket.InthetenWesternEuropeanfocusmarkets,BEVsalesincreasedby49%inthesecondquarterof2023incomparisonwiththeequivalentperiodlastyear,whereasthetotalmarketgrewby17%.IntheUnitedStates,thecorrespondingpercentageswere67%and19%,andinChina49%and29%.Infact,theonlymajormarketanalyzedinwhichBEVandoverallpowertrainsalesgrowthwereinanywaycomparablewasinItaly,wherethefigureswerealmostidentical(around19.5%).Ofcourse,BEVgrowthitselfisresponsibleformuchoftheoverallpowertrainsalesincreaseinmanymarkets.WhenonecomparesBEVgrowthwiththeincreaseinsalesofconventionalICEvehicles,theresultsareevenstarker(49%vs.8%inthetenWesternEuropeanfocusmarkets,49%vs.20%inChina,and67%vs.14%intheUnitedStates).ThegrowthofeachrespectiveBEVmarketdependstoalargeextentonitsmaturity.Yeartodate,theBEVmarketinNorwayhasincreasedbyjust2%comparedtothesameperiodin2022.TheapparentstallingofmarketgrowthislittlesurprisewhenoneconsidersthatBEVmarketsharehasalreadyreached83%.ThereversecanbeseeninBEVmarketsthathavebeenslowtotakeoff.Forexample,inIndiaandTurkey,whereBEVmarketsharehoversataroundjust2%,BEVsalesgrewby139%and341%respectivelyinthefirsthalfof2023.Significantly,BEVmarketshareinFrance,GermanyandtheUK,thethreelargestEuropeanmarkets,standsataround16%,widelyconsideredtobetheinflectionpointatwhichmainstreamconsumersgiveseriousconsiderationtoaBEVpurchase.GiventhatthemomentumofBEVsalesgrowthisthereforelikelytoincrease,OEMsarepositioningthemselvestotakeadvantagebyofferingdiscountsandnewproducts.UnlikewithBEVsales,thefortunesofthePHEVmarkethavefluctuatedmarkedly.WhereasPHEVsalesdecreasedby2%inthetenWesternEuropeanfocusmarketsinQ22023vs.Q22022,theygrewinChinaby105%.PHEVsfallwithinthedefinitionofthenewenergyvehicle(NEV)inChina,andthepurchasetaxexemptionforNEVshasnowbeenextendedforafurtherfouryears,tovaryingdegrees.BEVsalesincreasedwarfsoverallmarketStrategy&41.NewsandhighlightsBEVmarketcontinuesitssteadydriveintothemainstreamInterestintheMicroBEVsegmentismaximizingGiventhesignificantcostsoftheofficialapprovalprocessforstandardpassengercars,OEMsandstart-upsarebecomingincreasinglyinterestedindevelopinglight(L6)andheavy(L7)quadricyclesasBEVsforcityuse.ForOEMs,thereistheaddedbonusthattherearefewerrequirementsforthesevehiclestobebuiltwithcertainexpensivesafetyequipment,suchascrumplezones,airbagsandradarsensors.Start-upsfindgoingtoughasfundinggetstighterBEVstart-upsattractedmuchinterestandinvestmentfromcapitalmarketsinrecentyearswhentheywentpublic.Buttheirfortuneshavesincedipped,besetbymissedproductiontargets,supplychainproblemsandagenerallymoredownbeateconomicclimate.Rivian’ssharepriceisdownover80%fromitsrecordhighin2021andhasbeenconsequentlyremovedfromtheNasdaq-100index.5TheChineseBEVmanufacturerAiwaysisreportedlyinfinancialdifficulties.AccordingtoChinesemedia,vehicleproductionatitsplantinShangraohasbeensuspendedsinceFebruary.6Evenworse,LordstownMotors,SonoMotorsandLightyearallrecentlyfiledforbankruptcyorinsolvency.7,8,9OEMslooktoseizestationwagonopportunityEuropeisthehomeofthestationwagon,boastingalmosttwothirdsofglobalsalesin2022(1millionoutofaglobaltotalof1.5million).1Littlewonder,therefore,thatOEMsintheregionarelookingtoofferelectricversions,furtherevidenceofthesteadilygrowingelectrificationofthemainstreamcarmarket.ElectricstationwagonshaveamajoradvantageoverSUVs,withsuperioraerodynamicsimprovingtheirrangeandefficiency.ThecompetitivelypricedMG5andthemuchmorehigh-endPorscheTaycanSportTurismoaretheonlyBEVstationwagonscurrentlyonthemarket.ButnowotherOEMsareseizingtheopportunity.Forexample,theChinesecompanyNiohaslaunchedtheET5Touring,astationwagonversionoftheET5sedan,whichwillspearheadthecompany’sexpansionintotheEuropeanmarketwhensalesstarttowardstheendof2023.2Meanwhile,BMWhasconfirmedthatitwillreleaseitsi5Touringinspring2024,anelectricversionoftheBMW5SeriesTouringthatisverypopularamongEuropeancompanycardrivers.3VolkswagenisrumoredtobeaddingtheID.7TourertoitsBEVlineup,astationwagonversionoftheID.7sedan.4Ascapitalfundingisnowmuchmoredifficulttocomeby,andbecausethereisfiercecompetitionamongEVstart-ups,furthermarketconsolidationisanticipated.USrivalschargetoadoptTeslachargingsystemAlthoughitsshareoftheUSBEVmarkethasfallenfromitspeakof78%in2018to63%inH12023,rivalOEMshavebeenforcedtoacceptTesla’sdominance.SeveralhaverecentlyannouncedagreementsthatwillenableownersoftheirvehiclestouseTesla’sproprietaryNorthAmericanChargingStandard(NACS).10Foritspart,TeslasaysithopesthatthiswillincreaseBEVadoption.FordwasthefirstOEMtoreachanagreementwithTesla.Currently,theFordF-150LightningandMustangMach-EareequippedwithaCCS-typechargeport,butfromspring2024anadaptorwillallowthemtoconnecttoTesla’schargers.From2025,Ford’snewBEVswillfeatureastandardNACSplug.GeneralMotors,Rivian,Mercedes-Benz,Nissan,VolvoandPolestarhaveallsinceannouncedthattheywillincorporatetheNACSchargeportfrom2025.TheseOEMsandTeslarepresented81%ofallBEVsinH12023.TheotherssuchasHyundaiandVolkswagen,arenowsaidtobeintalkswithTesla.Atthesametime,certainchargingnetworks,suchasChargePointandElectrifyAmerica(ownedbyVolkswagen),havealsonegotiateddealstooffertheNACSconnectoratitsstationsinthenearfuture.11Sources1S&PGlobalLightVehicleSales,June2023;2Electrek,15June2023;3Topelectricsuv.com,5July2023;4ArenaEV,3July2023;5yahoo!finance,14June2023;6Electrive,22June2023;7Reuters,27June2023;8CleanEnergyWire,17May2023;9CleanTechnica,2February2023;10CNBC,15June2023;11CarandDriver,7July2023Strategy&51.NewsandhighlightsHowever,otherslookatwaystorecouplostfundsNotonlyaresubsidyprogramsexpensivetorun,butmanygovernmentshavealsoofferedaroadtaxexemptionforBEVs.Itisnosurprisethatmovesareafoottorecoversomeofthesecoststothestatebudget.Forexample,theHouseofRepresentativesintheUSStateofTexashasapproveda$200annualfeeforBEVowners.Thefeeissupposedtooffsetthelossoftaxfromthesaleoffuel.GiventhatthisfigureissignificantlyhigherthanthatcurrentlypaidbyICEvehicleowners,themovehasdrawnsomecriticism.4OEMsinvestinLFPbatterydevelopmentLithiumironphosphate(LFP)isalessexpensivebatterymaterialthanitsalternatives,cobaltandnickel.AstheBEVindustrystrivestoproducemoremainstream,affordablevehicles,LFPisattractingmuchattentionandinvestmentfrommultipleOEMs.5Forexample,Fordisplanningtoopena$3.5billionLFPmanufacturingplantin2026inMichigan,usingtechnologylicensedfromChina’sCATL.6ThecompanywilluseLFPbatteriesinitsMustangMach-Elaterthisyear.7Meanwhile,TeslaaimstouseLFPbatteriesinanaffordableBEVandasemi-heavyelectrictruck.8SolarpanelsonparkingstructuresgaintractionParkinglotsthroughouttheworldarestartingtobetransformedintosolarpowerhousesthatproducecleanerenergyandreducecosts.Bybuildingsolarcanopiesabovetheselargeopenspaces,carparkscanbecomeanidealvenueforelectricitygeneration.Thesesolarpanelsalsogranttheaddedbonusofofferingprotectionfromtheelements,keepingcarscoolerintheshade.9Francehaspassedalawthatrequiredallnewparkinglotswithmorethan80spacestocoveratleast50%oftheirgroundwithsolarcanopies.10SomeauthoritiesintheUSaremovinginasimilardirection.InRhodeIsland,legislationhasbeensubmittedwhichalsorequireslargeparkinglotstocover50%oftheirareawithsolarcanopies.11Californiaisencouragingthisdevelopmentbyofferingasalestaxexemptionforthematerialsinvolvedinbuildingsolarcanopiesoverparkinglots.12GovernmentsseektostimulatetheirBEVmarketsAuthoritiesthroughouttheworldcontinuetodowhatittakestostrengthentheirlocalBEVmarketsandmeetclimategoals.Indeed,thetwolargesteconomiesintheworld,theUSandChina,haverecentlyannouncedinitiativeswiththeseobjectivesinmind.TheBidenadministrationintheUShasproposedtoughnewautomobilepollutionlimitsthat,accordingtoexperts,wouldrequirearoundtwothirdsofallvehiclessoldinthecountrytobeelectricby2032,aroughlytenfoldincreaseonthecurrentBEVmarketshare.1TheChinesegovernmenthadpreviouslyofferedasubsidyforBEVpurchasesformorethanadecadebuttheprogramendedin2022.Withsalesgrowthnowweakening,ithasdecidedtoextendthecurrentNEV(newenergyvehicle)purchasetaxexemptionwhichwassettoexpireattheendof2023.NEVspurchasedin2024and2025willbeexemptedfrompurchasetaxamountingtoasmuchas30,000yuan($4,170)pervehicle.Theexemptionsavingwillbehalvedandcappedat15,000yuanforpurchasesmadein2026and2027.2AustraliahasalsoannounceditwillintroducenewstandardstargetingvehicleemissionsinordertoboostBEVsales,withthemarketcurrentlylaggingbehindotherdevelopedeconomies.3NewemissionstargetsandincentivesreflectgovernmentambitionsSources1APNews,12April2023;2Reuters,21June2023;3Reuters,19April2023;4Carscoops,28April2023;5Reuters,23June2023;6Reuters,23June2023;7Electrive,17February2023;8NewsDirect,12April2023;9InterestingEngineering,24May2023;10CleanTechnica,9February2023;11pvmagazine,24April2023;12pvmagazine,12April2023Strategy&FullIncentive(4,500€)ReducedIncentive(3,000€)NoIncentive05101520<3030-4040-65>657.88.610.310.18.511.110.913.8COVID-19lockdownsandtheresultingshortagesfromsupplychaindelayscreatedanupwardpressureonprices.However,assupplyhasnowstabilizedandproductionisincreasing,competitionamongOEMstoattractmainstreamconsumersisleadingtopricereductions.PwCAutofactsanalysisofpricesintheGermanmarketrevealsthatBEVdiscountsareincreasingandarenowsimilartothelevelofferedforICEmodels.Moreover,significantdiscountsareexpectedtoremaininplacefortheforeseeablefutureasthescrambleforconsumersandeconomiesofscalecontinues.203040506070Jan-22AprJulOctJan-23AprJul+3%62.AnalystinsightsBEVpricesfallasOEMsfighttoattractmainstreamconsumersSource:PwCAutofactsAnalysis,carwow,BloombergDealershipDiscounts(%)NetPrice(’000€)EuropeanLithiumPrices(’000USD/MetricTon)InjustonemonthfromJune2023,theaverageBEVdiscountinGermanyincreasedby1.5%,andnowstandsat10.9%excludinggovernmentalincentives.Bycomparison,theaveragediscountforICEvehiclesstayedatround10.3%.ThemostexpensiveBEVs,withpricesinexcessof€65,000net,weresubjecttothelargestdiscountincrease,upby2.9%to13.8%.OEMscanseethedirectionoftraveloverthecomingyears,andknowthattheexpansionoftheBEVmarketisinevitable.However,thequestionofhowthatcakewillbedividedamongOEMsstillhastobedecided.BEVsaleshavebeenincreasingsteadilyinGermanyoverrecentyears,butstillonlycomprisedamarketshareof15.8%duringthefirsthalfof2023.Manyconsumershavestilltomaketheleap,andBEVsarenotyetquiteamainstreamchoiceofpurchase.Basedonthetechnologyadoptionlifecycleamainstreammarketinflectionpoint–thejunctureatwhichanincreaseinBEVsalesissettogainsignificantmomentum–isnowconsistentlybeingreached.ThediscountsbeingofferedcanbeseenasOEMsjockeyingforprimepositiontotakethespoilsduringtheforthcomingperiodofrapidmarketexpansion.OurstudyalsorevealedmajordiscrepanciesinpricesforthesamemodelsinGermanyandChinarespectively.ChineseBEVsexportedtoGermanyarearound40-45%moreexpensiveinGermanythanintheirhomemarket,whileBEVsproducedandsoldinGermanyarealsoaround40-45%moreexpensivethantheequivalentmodelsproducedandsoldinChina.Certainly,EuropeiscurrentlythemoreattractiveregionforOEMstosellanyexcessBEVinventoryandfurtherpricereductionsarepossible.Nevertheless,thediscountsbeingofferedinEuropedoposeathreattoOEMprofitmargins,particularlyiftheycontinueoverasustainedperiod.Thecostofrawmaterials,suchaslithium,isstartingtoriseagainafterfallingatthestartoftheyear.China’scontrolovermuchoftheworld’slithiumsupplyalsocarriesamajorstrategicriskforOEMs.ShouldgeopoliticaltensionswithChinaintensify,accesstolithiumandrefiningcouldbeplacedinjeopardy.OEMswillthereforeneedtostrikeacarefulbalancebetweenriskandrewardastheBEVmarketheatsupfurther.Jun-23Jul-23Strategy&InflectionPoint010203040506070809010002550753501001,0751501,100125SouthKoreaNetherlandsJapanGermanyIndiaNorwayTurkeySwedenBrazilAustraliaSwitzerlandIndonesiaItalyGlobalAustriaFranceGrowthrate(%)Marketshare(%)ChinaUKUSASpainEarlyAdopters72.AnalystinsightsBEVsalesareacceleratingandclosingintotheinflectionpointBEVPenetration(inpercent)MainstreamMarketKeyInsights•Withaglobalmarketshareof13%,BEVshavenotarrivedinthemassmarketyet,butshowedasignificantgrowthof39%inH12023•ThethreebiggestEuropeaneconomiesarerightattheinflectionpointwithBEVshareYoYgrowthsbetween32%and48%inthefirsthalfofthisyear•Netherlandsshowedastark99%YoYincreaseinH12023,despiteaBEVmarketshareof31%,andthusalreadyreachingcriticalmass•Norway’sBEVsalesshowedthelowestYTDgrowthintheanalyzedcountrieswith2%duetoanalreadysaturatedBEVmarket•Indonesiaontheotherhand,hasseenatenfoldincreaseinYTDBEVsalesoverlastyear’sH1,albeitcomingfromalowbaseoflessthan500unitsSource:PwCAutofactsAnalysis,KBA,SMMT,PFA,ANFIA,ANFAC,SCB,OFV,RAI,auto-schweiz,StatistikAustria,CAAM,CPCA,JADA,ODMD,MoRTH,ABVE,FCAI,GAIKINDO,PZPMStrategy&8Source:PwCAutofactsAnalysis,OEMwebsitesPricinginformationasofJuly2023;exchangerateRMB-EURasof20.07.2023:¥1≈€0.125BEVpricedifferencesinGermanyvs.ChinaCategory%PriceDifferenceGermanyvs.China123+15%to+95%Average:+40%to+45%+30%to+60%Average:+40%to+45%-10%to+10%Average:+0%to+5%•ChineseBEVsexportedtoGermanyare~40%-45%moreexpensiveinGermanycomparedtothelocalmarket•BEVsproducedandsoldinGermanyare~40%-45%moreexpensivethantheequivalentBEVmodelsproducedandsoldinChina•GermanBEVsareonaveragesimilarlypricedorslightlymoreexpensiveinGermanythanthesameimportedmodelsinChina•ReasonsforhigherpricesinGermanyincludemorestringentapprovalproceduresandbroadlyhighercosts2.AnalystinsightsStrategy&TopBEVmodelsinH120232.Analystinsights9TeslaModelYtopsdomesticmodelsinmarketsabroadEuropeanTop4ModelSalesJan-Jun’23TeslaModelY53,746Fiat500e25,052VolkswagenID.4,ID.522,093TeslaModel320,915DaciaSpring20,355PeugeotE-20816,728MG415,664VolkswagenID.315,552RenaultMeganeElectric13,345AudiQ4e-tron11,017ChinaModelSalesJan-Jun’23TeslaModelY203,932BYDDolphin153,401BYDYuanPlus141,077WulingHongguangMiniEV122,037AionS115,599AionY92,009TeslaModel390,173BYDQinPlusEV54,659ChanganLumin50,881BYDHanEV47,71445678910Source:PwCAutofactsAnalysis,KBA,AAAData,DGT,UNRAE,CPCAUSAModelSalesJan-Jun’23TeslaModelY200,520TeslaModel3112,791ChevroletBoltEV/EUV33,659RivianR1T16,452VolkswagenID.416,448FordMustangMach-E14,040HyundaiIoniq513,641TeslaModelX13,475BMWi410,724TeslaModelS10,106Strategy&103.ElectricvehiclesalesdataQ12023Q22023Q32023Q42023BaojunYueyeKiaEV5Fiat600BYDSeagullCupraTavascanNIOEC7ChevroletSilveradoEVTeslaCybertruckLexusRZVolkswagenID.7BMWi5MGAirEVSource:S&PGlobalMobilityLightVehicleProductionforecast,June2023ReleaseNewBEVlaunchesdrivemarketgrowthStrategy&ElectricVehicles(EVs)11EVsalesremainontheriseKeyMarkets3.ElectricvehiclesalesdataEV=BatteryElectric+Plug-inHybrids+HybridsJune’22vs.June’23(in’000units)YTDJune’22vs.YTDJune’23(in’000units)02,0004,0006,0008,000YTDJun-22YTDJun-235,8637,852+34%04008001,2001,6002,000Jun-22Jun-231,2231,626+33%WE5+5ChinaUSAStrategy&BatteryElectricVehicles(BEVs)12BEVsalesgrewfastestintheUSKeyMarkets3.ElectricvehiclesalesdataJune’22vs.June’23(in’000units)YTDJune’22vs.YTDJune’23(in’000units)01,0002,0003,0004,0005,000YTDJun-22YTDJun-232,9534,044+37%02505007501,000Jun-22Jun-23657853+30%WE5+5ChinaUSAStrategy&Plug-inHybridElectricVehicles(PHEVs)13Plug-inmomentumstaysstronginChinaKeyMarkets3.ElectricvehiclesalesdataJune’22vs.June’23(in’000units)YTDJune’22vs.YTDJune’23(in’000units)04008001,2001,600YTDJun-22YTDJun-231,0211,517+49%0100200300400Jun-22Jun-23206332+61%WE5+5ChinaUSAStrategy&144.WesternEuropeTop5andotherEuropeanmarketsWE5+52023Q2Comparisonto2022Q2BEV429,000+49%PHEV193,000-2%Hybrid711,000+29%Total1,333,000+28%EuropeanTop5:France,Germany,Italy,Spain,andUnitedKingdomBEVsalesinthetop5Europeanmarketsgrewby49%inthesecondquarterof2023comparedtothecorrespondingperiodin2022.ThestrongestpercentageincreasewasrecordedinSpain,withgrowthof97%fromQ22022.However,itshouldbenotedthatthisincreasewasfromalowbase,andthatthenumberofBEVunitssoldinSpain(around16,000inthequarter)wasdwarfedbythefiguresinGermany(126,000),UK(77,000)andFrance(73,000).TheselargerBEVmarketsallenjoyedsignificantincreasesinQ22023vs.Q22022,withGermanyandUKbothgrowingby50%andFranceby47%.ItalyisstillstrugglingtomakeheadwayintheBEVmarket.BEVunitssoldwerearound16,000,anditsgrowthrateof20%fromQ22022waseasilyoutperformedbyPoland,whichregisteredanincreaseof76%.TheyeartodateBEVmarketshareinPolandisalsojust0.3%belowItaly.TheBEVmarketsharesinSpainandItalylagbehindtheothercountriesintheEuropeantopfivemarkets,atnearly6%and4%respectively.Meanwhile,BEVmarketsharesinFrance,GermanyandUKallhoveraroundthe16%mark,anacceptedinflectionpointatwhichmanymoremainstreamconsumersseriouslyconsideraBEVpurchaseandgrowthratestendthereforetoaccelerate.Meanwhile,PHEVsalesinthetopfivemarketsdeclinedby6%vs.Q22022.Thisoverallreductioncanbeattributedinlargeparttoa42%decreaseinGermany,followingatotaleliminationofPHEVincentivesattheendof2022.Yeartodate,onlyItalyhasalowerPHEVmarketshareoutoftheEuropeantopfivemarkets.OtherEuropeanmarkets+5:AT,CH,NL,NO,SEThelargestBEVsalesgrowthintheotherEuropeanmarketswasseenintheNetherlandsandAustria,withincreasesof96%and66%respectively.ItappearsthattheBEVmarketshareinNorway,easilythehighestintheworld,isstabilizingataround83%.Yeartodate,thetotalEVmarketshareinNorwayisnowover96%.WesternEurope5+5Strategy&USA2023Q2Comparisonto2022Q2BEV287,000+67%PHEV71,000+51%Hybrid306,000+43%Total664,000+53%15UnitedStates4.UnitedStatesTheUSBEVmarketgrewby67%inthesecondquarterof2023vs.thesamequarterin2022,onceagainpropelledbygovernmentincentives,popularnewmodelsandthedevelopmentofthecountry’scharginginfrastructure.USBEVmarketsharecurrentlystandsatonly7%.However,theeffectoftheabovefactors,furtherstrengthenedbytheBidenadministration’srecentproposalsforstringentnewautomobilepollutionlimits,arepoisedtospuradramaticincreaseintheBEVshareoverthecomingyears.June2023wasthefirsttimeBEVsalesexceeded100,000inasinglemonth.HybridandPHEVsalesbothrecoveredsomewhatinQ22023.MorehybridsthanBEVsweresoldforthefirstquartersinceQ32022,whilePHEVsalesincreasedby51%afterseveralquartersofeithermuchslowergrowthorevendecline.Yeartodate,theHEVmarketshareremainsjustbelowthatofBEV.Strategy&China2023Q2Comparisonto2022Q2BEV1,567,000+49%PHEV592,000+105%Hybrid197,000+5%Total2,355,000+54%16ChinaandotherAsiancountries4.ChinaandothercountriesinAsiaChinaChina’sBEVsalesincreasedby49%inQ22023fromthecorrespondingquarterlastyear.PHEVsalesmorethandoubledinthesametimeframe,upby105%,easilythelargestincreaseamongthemajormarketsinourstudy.With232,000units,June2023wasthebesteversalesmonthforPHEVsinChina.InQ22023,Chinaaccountedfornearly68%ofallPHEVsalesinthe20analyzedmarkets.Therehadbeenanoticeableweakeningofdemandinthefirstquarterofthisyear,afterthedecade-longstatesubsidyforNEVpurchasesterminatedattheendof2022.Inresponse,thegovernmenthasdecidedtoextendtheNEVpurchasetaxexemption,whichwassettoexpireattheendof2023,forafurtherfouryears(theexemptionsavingwillbehalvedaftertwoofthoseyears).ThisincentiveissettoactasastimulustobothBEVandPHEVmarketsoverthecomingyears.JapanJapan’sEVmarketcontinuestobealmostcompletelydominatedbythesaleofHEVs,whichboastedanoverallmarketshareof54%inQ22023.TheBEVmarketshowedsomesignsoflife,growingby63%fromQ22022,albeitfromalowbase.TheBEVmarketsharestandsat2%.Yeartodate,emergingeconomiessuchasIndiaandIndonesiahaveBEVsharesslightlybelowJapanandarecurrentlyexperiencingmuchmoresignificantBEVgrowthcomparedto2022.SouthKoreaBEVsalesinSouthKoreaincreasedbyjust9%inQ22023fromtheequivalentperiodin2022.TheBEVmarketshareforthequarterwas9%.NumbersmaynotaddupduetoroundingStrategy&EVregistrationsYTDJune2023WE5+5Totalregistrations5,246,959EVregistrations2,564,601ofwhichBEV790,849ofwhichPHEV370,057ofwhichHybrid1,403,695USATotalregistrations7,660,800EVregistrations1,182,828ofwhichBEV534,643ofwhichPHEV122,439ofwhichHybrid525,746ChinaTotalregistrations13,239,000EVregistrations4,104,768ofwhichBEV2,719,000ofwhichPHEV1,025,000ofwhichHybrid360,768ICEBEVPHEVHybrid175.Rankings84,6%7,0%1,6%6,9%51,1%15,1%7,1%26,8%69,0%20,5%7,7%2,7%SharesofEVregistrationsStrategy&186.ElectrifiedvehicleassemblyforecastElectrifiedvehicleassemblyforecastbyregion02550752023F2028F27.663.2+129%1Western+CentralEuropeChinaNAFTAAsia-Pacific(w/oChina)RoWElectrifiedVehicleAssemblybyRegion2023Fvs.2028F(inmillionunits)024682023F2028F3.86.0+57%3Plug-InHybridVehicleAssembly2023Fvs.2028F(inmillionunits)0102030402023F2028F10.734.6+224%2BatteryElectricVehicleAssembly2023Fvs.2028F(inmillionunits)05101520252023F2028F13.122.6+72%4FullandMildHybridVehicleAssembly2023Fvs.2028F(inmillionunits)Source:S&PGlobalMobilityLightVehiclePowertrainforecast,June2023ReleaseStrategy&01020304050607020192020202120222023F2024F2025F2026F2027F2028F-2002040608010012019Electrifiedvehicleassemblyforecast6.Electrifiedvehicleassemblyforecast5GlobalElectrifiedVehiclesAssemblybyPowertrainType2019‒2028F(inmillionunits,percent)BEVPHEVFHEV+MHEVBEVGrowthPHEVGrowthFHEV+MHEVGrowthSource:S&PGlobalMobilityLightVehiclePowertrainforecast,June2023ReleaseStrategy&BrandModelLaunchQuarterAitoWenjieM92023Q4BMWi52023Q3BMWiX22023Q4ChevroletEquinoxEV2023Q3CupraTavascan2023Q4Fiat6002023Q3Hondae:N12023Q4KiaEV52023Q4POERShanhai2023Q4PolestarPolestar42023Q4Rolls-RoyceSpectre2023Q3TeslaCybertruck2023Q4VinFastVF72023Q3VolkswagenID.72023Q3ZeekrX2023Q320Overview:BEVmodellaunches2023(notexhaustive)7.ElectricvehiclemodellaunchesSource:S&PGlobalMobilityLightVehicleProductionforecast,June2023ReleaseStrategy&21Overview:BEVmodellaunches2024‒2027(notexhaustive)7.ElectricvehiclemodellaunchesBrandModelLaunchAudiA3e-tron2027BMWi12027BMWiX52026BMWiX72027CupraRaval2025FiskerPEAR2025FoxtronModelC2025FoxtronProjectX2026HondaPassportEV2027HondaPilotEV2026HyundaiIoniq32027HyundaiIoniq42026HyundaiIoniq82025KiaEV32024KiaEV42024Source:S&PGlobalMobilityLightVehicleProductionforecast,June2023ReleaseStrategy&BrandModelLaunchKiaEV82027LanciaGamma2026LucidGravity2024Mercedes-BenzEQG2024MGCyberster2024MiniAceman2024Porsche7182025Renault52024Rolls-RoyceCullinan2027ToyotabZ5X2025VolkswagenID.22025VolkswagenID.82026VolvoES902024VolvoEX402026VolvoEX60202522Overview:BEVmodellaunches2024‒2027(notexhaustive)7.ElectricvehiclemodellaunchesSource:S&PGlobalMobilityLightVehicleProductionforecast,June2023ReleaseStrategy&LegendMoY=Month-on-YearQoY=Quarter-on-YearYoY=Year-on-YearYTD=Year-to-DateSource:PwCAutofactsAnalysis,KBA,SMMT,PFA,ANFIA,ANFAC,SCB,OFV,RAI,auto-schweiz,StatistikAustria,CAAM,CPCA,JADA,ODMD,MoRTH,ABVE,FCAI,GAIKINDO,PZPM23ElectricvehiclesalesdataGermany,UK,France,Italy,Spain,WE-58.ElectricvehiclesalesdataYTD2023MarketShareYTD2022YoYYTDQ223QoYQ223Jun23MoYJun23May23MoYMay23Apr23MoYApr23BEV220,24415.8%167,26331.7%125,50850.1%52,98864.4%42,78046.6%29,74034.1%PHEV79,0655.7%138,880-43.1%41,520-41.6%15,930-39.2%13,803-40.5%11,787-45.7%Hybrid324,07823.2%233,24038.9%167,84250.3%62,31959.1%57,84254.5%47,68135.9%GermanyTotalEV623,38744.6%539,38315.6%334,87025.7%131,23734.5%114,42527.4%89,20813.0%BEV152,96516.1%115,24932.7%76,73550.2%31,70039.4%24,51358.7%20,52259.1%PHEV62,1556.5%51,26321.2%30,39041.3%12,77065.5%9,02523.0%8,59533.3%Hybrid299,56431.5%238,36525.7%143,51323.5%56,20838.8%46,14224.0%41,1637.0%UKTotalEV514,68454.2%404,87727.1%250,63832.8%100,67841.9%79,68032.8%70,28021.6%BEV137,91715.5%93,34447.8%73,05846.6%33,27952.0%22,66748.7%17,11234.8%PHEV77,9918.8%62,81024.2%41,47923.8%17,96950.2%12,63211.8%10,8786.3%Hybrid205,10423.1%164,06925.0%111,42522.5%46,1037.2%34,38232.2%30,94040.9%FranceTotalEV421,01247.3%320,22331.5%225,96229.6%97,35126.6%69,68132.6%58,93031.3%BEV32,6773.9%24,94231.0%16,32119.5%6,1520.1%6,18338.2%3,98631.5%PHEV38,9114.6%36,1547.6%19,9462.4%7,4068.0%6,593-9.2%5,94710.8%Hybrid296,37035.2%227,45730.3%143,53228.3%48,10029.9%51,82427.2%43,60827.9%ItalyTotalEV367,95843.8%288,55327.5%179,79924.0%61,65823.2%64,60023.1%53,54126.0%BEV29,2115.8%16,23979.9%15,59496.6%6,53389.5%4,984113.0%4,07790.2%PHEV31,8826.3%24,08632.4%16,92925.2%6,52051.8%6,06225.4%4,347-1.0%Hybrid153,73530.4%117,60730.7%80,59215.1%30,77422.0%27,5099.1%22,30913.8%SpainTotalEV214,82842.5%157,93236.0%113,11523.6%43,82733.0%38,55519.1%30,73317.6%BEV573,01412.5%417,03737.4%307,21649.1%130,65251.1%101,12751.6%75,43742.5%PHEV290,0046.3%313,193-7.4%150,264-5.6%60,5956.2%48,115-10.8%41,554-13.7%Hybrid1,278,85127.9%980,73830.4%646,90429.2%243,50431.7%217,69930.6%185,70124.5%WE-5TotalEV2,141,86946.7%1,710,96825.2%1,104,38427.5%434,75132.4%366,94127.7%302,69220.9%Strategy&LegendMoY=Month-on-YearQoY=Quarter-on-YearYoY=Year-on-YearYTD=Year-to-DateSource:PwCAutofactsAnalysis,KBA,SMMT,PFA,ANFIA,ANFAC,SCB,OFV,RAI,auto-schweiz,StatistikAustria,CAAM,CPCA,JADA,ODMD,MoRTH,ABVE,FCAI,GAIKINDO,PZPM24ElectricvehiclesalesdataSweden,Norway,Netherlands,Switzerland,Austria,WE5+58.ElectricvehiclesalesdataYTD2023MarketShareYTD2022YoYYTDQ223QoYQ223Jun23MoYJun23May23MoYMay23Apr23MoYApr23BEV52,87336.4%40,36031.0%29,68445.6%11,00531.6%11,69679.1%6,98327.0%PHEV29,22920.1%35,172-16.9%16,358-6.3%5,806-5.7%5,991-2.5%4,561-11.5%Hybrid14,2869.8%14,0251.9%6,898-6.8%2,49820.9%2,313-11.0%2,087-23.7%SwedenTotalEV96,38866.4%89,5577.6%52,94017.0%19,30916.4%20,00030.9%13,6311.8%BEV55,27683.1%54,1772.0%31,04513.4%12,8019.2%10,77327.6%7,4713.7%PHEV4,6897.0%6,364-26.3%3,149-21.8%1,354-18.9%1,092-20.6%703-28.4%Hybrid4,1246.2%3,24827.0%2,2649.6%82349.9%1,04229.0%399-43.7%NorwayTotalEV64,08996.3%63,7890.5%36,4588.9%14,9787.4%12,90721.4%8,573-3.7%BEV63,15031.3%31,70299.2%35,73895.8%15,18695.0%11,699118.8%8,85373.0%PHEV26,69013.2%18,73642.5%13,24651.8%5,08887.3%4,33551.2%3,82321.7%Hybrid46,40323.0%39,52017.4%24,19833.9%9,47740.5%7,43833.7%7,28326.3%NetherlandsTotalEV136,24367.5%89,95851.5%73,18262.4%29,75172.5%23,47270.4%19,95942.3%BEV23,16418.7%17,99228.7%12,91440.8%5,22617.5%4,31363.5%3,37561.6%PHEV10,6338.6%9,42112.9%5,42822.7%2,30249.9%1,6834.6%1,44312.9%Hybrid33,95227.4%27,50523.4%17,70925.2%6,74831.5%5,90022.5%5,06120.5%SwitzerlandTotalEV67,74954.7%54,91823.4%36,05130.0%14,27628.5%11,89631.3%9,87930.6%BEV23,37218.4%14,49361.3%12,13765.6%4,61235.1%4,130100.1%3,39583.6%PHEV8,8127.0%6,54234.7%4,42032.5%1,79950.9%1,27621.2%1,34523.3%Hybrid26,07920.6%20,65426.3%13,39722.3%5,00326.0%4,42923.9%3,96516.4%AustriaTotalEV58,26346.0%41,68939.8%29,95438.6%11,41433.1%9,83547.0%8,70537.2%BEV790,84915.1%575,76137.4%428,73448.5%179,48246.9%143,73856.7%105,51441.2%PHEV370,0577.1%389,428-5.0%192,865-2.1%76,9449.4%62,492-6.7%53,429-10.6%Hybrid1,403,69526.8%1,085,69029.3%711,37028.5%268,05331.8%238,82129.8%204,49623.2%WE5+5TotalEV2,564,60148.9%2,050,87925.0%1,332,96928.3%524,47932.5%445,05129.9%363,43920.9%Strategy&LegendMoY=Month-on-YearQoY=Quarter-on-YearYoY=Year-on-YearYTD=Year-to-DateSource:PwCAutofactsAnalysis,KBA,SMMT,PFA,ANFIA,ANFAC,SCB,OFV,RAI,auto-schweiz,StatistikAustria,CAAM,CPCA,JADA,ODMD,MoRTH,ABVE,FCAI,GAIKINDO,PZPMBEVandPHEVsalesbasedonCAAMdata;hybridsalesbasedonCPCAwholesaledata;Partiallyestimated25ElectricvehiclesalesdataAustralia,Brazil,China,India,Indonesia,Japan8.ElectricvehiclesalesdataYTD2023MarketShareYTD2022YoYYTDQ223QoYQ223Jun23MoYJun23May23MoYMay23Apr23MoYApr23BEV43,0927.4%9,680345.2%25,696777.6%11,042871.2%8,124778.3%6,530654.0%PHEV3,5320.6%2,94120.1%2,0719.3%73528.9%79113.6%545-13.2%Hybrid38,3116.6%41,060-6.7%22,2128.5%9,02040.8%7,600-2.5%5,592-10.9%AustraliaTotalEV84,93514.6%53,68158.2%49,97997.5%20,797156.3%16,51575.4%12,66763.0%BEV3,7770.4%3,39711.2%1,797-14.7%618-43.3%61510.6%56422.3%PHEV11,4751.2%3,751205.9%6,213190.9%2,365210.0%2,592250.7%1,25698.1%Hybrid16,9871.8%13,27927.9%9,44348.9%3,24246.0%3,22854.3%2,97346.6%BrazilTotalEV32,2393.4%20,42757.8%17,45364.9%6,22552.8%6,43590.0%4,79353.5%BEV2,719,00020.5%2,054,00032.4%1,567,00048.7%573,00020.4%523,00050.7%471,000103.9%PHEV1,025,0007.7%536,95990.9%591,600105.2%232,00092.9%194,30094.2%165,300143.0%Hybrid360,7682.7%384,406-6.1%196,5895.2%71,830-21.3%62,3737.5%62,38665.9%ChinaTotalEV4,104,76831.0%2,975,36538.0%2,355,18954.0%876,83027.5%779,67354.4%698,686107.6%BEV39,2561.5%16,426139.0%22,129157.5%8,018144.5%7,859161.5%6,252170.8%PHEV1060.0%12783.3%981860.0%570.0%241100.0%17466.7%Hybrid180,2916.8%63,081185.8%80,343130.5%26,152111.8%26,18470.4%28,007292.6%IndiaTotalEV219,6538.3%79,519176.2%102,570136.1%34,227119.0%34,06785.4%34,276262.9%BEV5,8531.5%4951082.4%4,053840.4%1,208815.2%1,560680.0%1,2851198.0%PHEV190.0%1090.0%180.0%90.0%70.0%20.0%Hybrid17,2874.5%1,2331302.0%10,8691751.6%4,7182136.0%3,2831776.0%2,8681326.9%IndonesiaTotalEV23,1596.0%1,7381232.5%14,9401367.6%5,9351630.3%4,8501193.3%4,1551285.0%BEV22,8571.7%14,75254.9%10,69963.1%4,11021.6%3,280108.7%3,309105.5%PHEV25,1631.8%18,86433.4%12,69848.9%5,17156.4%3,56920.9%3,95874.4%Hybrid738,22253.9%522,94841.2%325,67651.9%126,14160.7%98,43451.0%101,10142.8%JapanTotalEV786,24257.4%556,56441.3%349,07352.1%135,42259.0%105,28351.0%108,36845.1%Strategy&LegendMoY=Month-on-YearQoY=Quarter-on-YearYoY=Year-on-YearYTD=Year-to-DateSource:PwCAutofactsAnalysis,KBA,SMMT,PFA,ANFIA,ANFAC,SCB,OFV,RAI,auto-schweiz,StatistikAustria,CAAM,CPCA,JADA,ODMD,MoRTH,ABVE,FCAI,GAIKINDO,PZPM26ElectricvehiclesalesdataPoland,SouthKorea,Turkey,USA,AnalyzedMarkets8.ElectricvehiclesalesdataYTD2023MarketShareYTD2022YoYYTDQ223QoYQ223Jun23MoYJun23May23MoYMay23Apr23MoYApr23BEV8,5003.6%4,80077.1%4,40076.0%1,80080.0%1,40075.0%1,20071.4%PHEV6,7002.8%5,30026.4%3,60033.3%1,30044.4%1,20020.0%1,10037.5%Hybrid86,80036.4%72,10020.4%40,4005.5%14,80010.4%13,6006.2%12,000-0.8%PolandTotalEV102,00042.7%82,20024.1%48,40011.3%17,90017.0%16,20011.0%14,3005.1%BEV78,5028.8%65,77219.4%42,6369.2%14,75321.2%13,544-5.9%14,33915.0%PHEV5,7310.6%7,187-20.3%3,77824.0%1,50555.2%1,31147.1%962-18.8%Hybrid175,92919.7%129,58535.8%96,63429.6%35,31838.8%32,01030.9%29,30618.8%SouthKoreaTotalEV260,16229.1%202,54428.4%143,04822.6%51,57633.7%46,86517.9%44,60716.4%BEV9,9812.3%2,263341.1%6,215422.3%2,502401.4%2,095457.2%1,618413.7%PHEV9900.2%294236.7%669215.6%305272.0%208136.4%156271.4%Hybrid42,6509.9%29,29145.6%24,09733.7%7,98738.8%7,60919.3%8,50144.2%TurkeyTotalEV53,62112.5%31,84868.4%30,98159.4%10,79470.3%9,91244.9%10,27564.3%BEV534,6437.0%322,90365.6%287,17366.6%100,25269.7%94,29063.1%92,63167.1%PHEV122,4391.6%94,59029.4%70,78350.7%22,59649.4%24,83257.1%23,35545.5%Hybrid525,7466.9%419,31225.4%306,03943.0%101,67955.2%103,83241.0%100,52834.2%USATotalEV1,182,82815.4%836,80441.4%663,99553.2%224,52760.7%222,95451.4%216,51447.9%BEV4,256,31012.7%3,070,24938.6%2,400,53252.1%896,78531.9%799,50554.2%704,24285.3%PHEV1,571,2124.7%1,059,33648.3%884,39360.5%342,98761.5%291,32654.0%250,08067.4%Hybrid3,586,68610.7%2,761,98529.9%1,823,67233.9%668,94032.6%596,97432.7%557,75836.8%AnalyzedMarketsTotalEV9,414,20828.0%6,891,56936.6%5,108,59746.3%1,908,71236.7%1,687,80545.8%1,512,08061.4%Strategy&JörnNeuhausenDirector,Strategy&GermanyPhone:+491722511143joern.neuhausen@strategyand.de.pwc.comAnnabelleKliesingSeniorManagerCommunicationsandThoughtLeadership,Strategy&GermanyPhone:+491711686382annabelle.kliesing@pwc.com279.ContactsAuthorsandPRcontactStevenvanArsdaleManager,PwCAutofacts®,PwCGermanyPhone:+4915165231099steven.james.van.arsdale@pwc.comFelixKuhnertPartner,AutomotiveIndustryLeader,PwCGermanyPhone:+4916090169893felix.kuhnert@pwc.comStrategy&289.ContactsAutomotivecontactsHaraldWimmerGlobalAutomotiveLeaderPwCGermanyPhone:+492212084240harald.wimmer@pwc.comJunJinAutomotiveLeaderChinaPwCChinaPhone:+861065332977jun.jin@cn.pwc.comJörgKringsAutomotiveLeaderStrategy&Strategy&GermanyPhone:+498954525574joerg.krings@pwc.comMarcusHoffmannAutomotivePracticeCo-LeadStrategy&GermanyPhone:+498954525690marcus.hoffmann@pwc.comEiichiYamanakaAutomotiveLeaderJapanPwCJapanPhone:+819065136238eiichi.yamanaka@pwc.comDong-KyuChoAutomotiveLeaderSouthKoreaPwCSouthKoreaPhone:+8227090971dong-kyu.cho@pwc.comAkshaySinghAutomotiveAdvisoryPartnerStrategy&USAPhone:+14403828477akshay.singh@pwc.comJoseBaghdadAutomotiveLeaderFrance&MaghrebPwCFrance&MaghrebPhone:+33156578403jose.baghdad@pwc.comBrianDeckerAutomotiveLeaderUSAPwCUSAPhone:+13135107534brian.d.decker@pwc.comManuelDiazDelgadoAutomotiveLeaderSpainPwCSpainPhone:+34915685019manuel.diaz.delgado@pwc.comCaraHaffeyAutomotiveLeaderUKPwCUKPhone:+447809551517cara.haffey@pwc.comFrancescoPapiAutomotiveLeaderItalyStrategy&ItalyPhone:+39669207348francesco.papi@pwc.comstrategyand.pwc.com©2023PwC.Allrightsreserved.PwCreferstothePwCnetworkand/oroneormoreofitsmemberfirms,eachofwhichisaseparatelegalentity.Pleaseseewww.pwc.com/structureforfurtherdetails.MentionsofStrategy&refertotheglobalteamofpracticalstrategiststhatisintegratedwithinthePwCnetworkoffirms.FormoreaboutStrategy&,seewww.strategyand.pwc.com.NoreproductionispermittedinwholeorpartwithoutwrittenpermissionofPwC.Disclaimer:Thiscontentisforgeneralinformationpurposesonly,andshouldnotbeusedasasubstituteforconsultationwithprofessionaladvisors.Thankyou
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