Mainland China and Europe hold 87% of electric vehicle sales in first half

• EV sales jump 160% to 2.6m compared to 26% growth in total global car market.
• 1.1m EV cars sold in Mainland China and 1m in Europe.
• Tiny Hongguang Mini EV from Wuling is currently outselling all other EVs in the market.
• Four of the top 10 best-selling EVs in the first half were small city cars.
• Tesla, which continues to dominate the US market, has been overtaken by VW in Europe.

Sales of electric vehicles (EVs) in the two major markets – Mainland China and Europe – represented a combined 87 per cent of sales worldwide in the first half of the year.

The growth of EV sales far exceeded that of the total global car market, which was up 26 per cent, with demand returning as Covid-19 restrictions eased in many markets, though overall car sales are still below pre-pandemic levels.

Despite a global shortage of components, production interruptions due to the pandemic, and the longer-term weakness in the overall market, the EV sector continued to be a bright spot in the industry in the first half.

2.6 million EVs were sold on a global basis, up 160 per cent compared to the same period a year ago.

Chris Jones, Chief Analyst and Vice-President for Automotive and Emobility at Canalys, said that demand for EVs remains buoyant in Mainland China, 1.1 million were sold in the first half – nearly as many as were sold in the whole of 2020.

“Only six per cent of cars sold in 2020 in Mainland China were EVs – it will be more than double that for full-year 2021,” he said.

Mainland China accounted for 12 per cent of all passenger cars sold there while 1 million EVs were sold in Europe, accounting for 15 per cent of new cars.

In comparison, the US EV market continues to lag. 250,000 EVs were sold in the US in the first half, just three per cent of new cars sold.

Small city cars in spotlight

Tesla, which continues to dominate the US market, has been overtaken in Europe and holds 15 per cent of the global share, followed by Volkswagen Group with a 13 per cent market share and the leader in Europe,  SGMW, the combination of SAIC, GM and Wuling, came third with an 11 per cent market share, BMW Group and Stellantis with six per cent share respectively.

Tesla’s success in Mainland China has motivated Chinese carmakers to quickly expand their EV offerings.

EVs from brands such as Aion, BYD, Li Xiang, NIO and Xpeng are selling well, but it is the tiny Hongguang Mini EV from Wuling that is currently outselling all other EVs on the market.

Four of the top 10 best-selling EVs in the first half were small city cars.

With strong consumer demand for EVs and huge long-term opportunities, one of China’s most successful consumer technology companies, Xiaomi, has set its sights on the Chinese EV market with a proposed $10 billion investment.

“It is not surprising that Xiaomi is interested in the EV market, but if it wants to compete in the premium sector, it must match or beat Tesla for technology, and match or beat it on price – not easy with your first car,” Jones said.

Greater choice for consumers

Sandy Fitzpatrick, VP, Automotive and Emobility at Canalys, said that in some European countries, EVs represent more than a quarter of new cars sold.

Norway remains the global leader for EV adoption at over 80 per cent of new car sales.

Fitzpatrick said that companies are expanding their EV line-ups, offering consumers greater choice.

“The European Union has set emissions targets for carmakers. Individual European countries offer consumer incentives and have set targets to ban the sale of combustion engine vehicles. The challenge for the carmakers is keeping up with EV demand during the component shortage crisis,” she said.

Recognising the poor EV uptake in the US, particularly compared with Mainland China, President Biden has proposed a $174 billion investment with incentives and substantial charging infrastructure deployments to “win the EV market” and has committed to 40 per cent to 50 per cent of all new cars sales being EVs by 2030.

When governments commit to supporting the EV market with incentives, targets, penalties and investment, Fitzpatrick said that consumer adoption will increase – but it will not happen overnight, especially in the diverse US market.

 “One of the reasons for the slow uptake of EVs in the US is limited vehicle choice. But carmakers are set to launch the first EVs in the hugely popular pick-up truck segment in the US soon. If they’re successful, the perception of EVs should quickly change,” she said.