January 2024: Electrifying the Roads – Latest Updates in Electric Mobility(II)

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In the rapidly evolving realm of electric vehicles (EVs), recent developments showcase a global commitment to sustainable mobility. Germany’s 25% plug-in vehicle sales, Thailand’s extended EV subsidies, France’s record-breaking year, and Italy’s $1 billion investment all contribute to a shared vision of cleaner transportation. This blog delves into the latest strides made by these countries, highlighting their diverse strategies propelling the electric vehicle revolution.

National flag of Germany

Germany Achieves 25% Plug-in Vehicle Sales in 2023!

Overview of the German Plugin Market (2023):

  • Subsidy cuts impacting PHEVs and BEVs.
  • PHEV registrations plummet by 52%, ending at 175,724 units.
  • Subsidies for BEV company cars end in September, creating a delivery peak in August.

Abrupt End to EV Subsidies and Impact on Sales (December 2023):

  • Government decision to end EV subsidies earlier than planned.
  • Despite discounts by some brands, the sales peak in December is not as significant as anticipated.
  • BEVs secure a 30% plugin market share in December.

Full-Year 2023 Plugin Market Performance:

  • BEVs achieve a 19% share, a 1% increase from 2022.
  • Overall plugin market ends at 25%, a 6% drop from 2022.
  • BEV market sees positive growth despite subsidy cuts.
Germany-Top-20-YTD-EV-Models-January-December-2023
Germany-Top-20-EV-Models-December-2023

BEV vs. PHEV Breakdown and Future Trends:

  • BEVs outsell PHEVs, with a shift from 56% BEV vs. 44% PHEV in 2022 to 75% BEV vs. 25% PHEV in 2023.
  • Expectations for PHEVs to rebound slightly in early 2024.
  • Anticipation for significant growth in the German EV market in 2025.

Top Sellers and Market Predictions for 2024:

  • December’s surprising top sellers, with BMW i4 leading.
  • Model Y’s weak end of the quarter and possible Osborne effect.
  • Predictions for 2024, with Tesla Model Y likely to remain at the top and uncertainties for other podium positions.
  • Size category winners, brand rankings, and insights into potential changes in 2024.
National flag of Thailand

Thailand approves second phase of EV subsidies for 2024 to 2027

byd-tang-phev

Thailand's Ambitious ZEV Production Targets by 2030:

  • Goal: Achieve at least 30% ZEVs in total motor vehicle production by 2030.
  • Target numbers: 725,000 cars and 675,000 motorcycles.

EV 3.5 Package Approval for Growth and Investment:

  • Duration: 4 years (2024-2027).
  • Objective: Stimulate continuous growth in the EV industry.
  • Encouragement for new players to invest in EV manufacturing in Thailand.
  • Support for the entire EV industry ecosystem.

Incentives and Subsidies under EV 3.5:

  • Subsidies for electric passenger cars, pickup trucks, and motorcycles.
  • Subsidy ranges based on vehicle types, battery capacities, and price limits.
  • Discussion on subsidy rates ongoing; to be proposed for cabinet approval.

Tax Incentives and Import Duty Reductions:

  • Excise tax reduction for electrical passenger cars (priced under $200,000 USD).
  • Additional import duty reduction for EVs (priced under $58,000 USD) during 2024-2025.
  • Conditions: Companies must offset EV production domestically for imported Completely Built-Up Units (CBUs).

Extension of EV Registration Deadline and Program Impact:

  • Extension: Deadline for EV registration under EV 3 package extended from December 31, 2023, to January 31, 2024.
  • Program Impact: First nine months of EV 3 (January-September 2023) saw a significant surge.
  • Growth: New EV registrations reached 50,340 units, marking a 7.6 times increase compared to the same period last year.
  • Cumulative Impact: Since 2017, Thailand’s EV promotion packages have attracted $1.8 billion USD in investments in various EV-related sectors.
Flag of France

France's Electric Vehicle Revolution: A Record-Breaking Year in Sales

eiffel_tower_at_night_paris_france-normal

Electric Car Boom in France:

  • In 2023, 26% of new cars sold in France were battery electric and plug-in hybrid vehicles.
  • This marks a significant 47% increase from the 2022 figures.
  • A total of 1,774,729 new electric cars were sold in 2023.

Shift in Car Sales Landscape:

  • Gas guzzlers still constitute more than a third of the market.
  • Diesel sales are rapidly declining, with only one in 10 new cars sold in 2023 running on diesel.
  • Plug-in hybrids represent 9% of total sales.

Tesla Dominance and Market Changes:

  • Tesla remains the undisputed leader in the French and European electric vehicle market.
  • Model 3 and Model Y SUV continue to dominate sales.
  • New incentives exclude Chinese-made models and Tesla’s Model 3, potentially impacting Tesla’s market share.

Changes in Green Incentives:

  • France’s green bonus has undergone changes, tightening rules for EV incentives.
  • Incentives now consider the car’s production and life cycle, excluding those with heavy CO2 emissions.
  • Chinese-made Dacia Spring and Tesla’s Model 3 are among the popular models no longer eligible.

Government Initiatives and Future Plans:

  • In 2024, the French government plans to spend €200 million less to support EV adoption compared to 2023.
  • Introduction of a social leasing program allowing lower-income drivers to lease electric cars for as low as €100 per month.
  • The program includes no down payment and, in some cases, free charging for six months.
  • France commits to producing over 1 million EVs by the end of 2027.
National flag of Italy

Italy Plans $1 Billion Investment to Drive Electric Car Expansion

2021-Fiat-Tipo

Italy's Electric Vehicle Adoption Challenges:

  • Italy faces challenges with some of the oldest and most polluting cars in Europe, hindering progress in electric vehicle (EV) adoption.
  • The country lags behind other European nations in transitioning to electric cars.

Government's $1 Billion Investment Plan:

  • The Italian industry ministry considers a substantial €930 million ($1 billion) investment to boost EV adoption.
  • Financial incentives include a €13,750 bonus for citizens with an annual income below €30,000 to replace old Euro 2 models with new electric cars.
  • Special emphasis on promoting EVs made in Italy.

Targeting Old Vehicle Fleet:

  • Italy has the oldest vehicle fleet in Europe, with at least 11 million Euro 3 cars or lower-grade vehicles on the roads.
  • The plan aims to encourage the replacement of older vehicles with modern electric alternatives.

Support for Low-Income Families:

  • The proposed plan aims to assist low-income families in purchasing EVs, following a model similar to France’s incentives for domestically produced cars.
  • Specific details and benefits for low-income families will be presented to auto representatives in the upcoming month.

Current State of EV Market in Italy and EU:

  • Italy experienced a 19% increase in new car registrations last year, reaching 1.57 million.
  • Petrol cars dominate with over 29% market share, while battery electric vehicles (BEVs) hold a 3.9% market share, and plug-in hybrid electric vehicles (PHEVs) have a 4.2% market share.
  • Legacy automakers, including Volkswagen’s Audi and Mercedes-Benz Group AG, show concerns and are scaling back on EV initiatives.
  • New EU data indicates that electric cars and plug-in hybrids constitute over 24% of new passenger car registrations in the region, with a gradual increase from the previous year.
  • A broader EU goal aims for all new cars and vans registered in Europe to be zero-emission by 2035, contingent on automakers continuing to produce new electric vehicles.

From Germany’s sales milestones to Thailand’s visionary subsidies, France’s surge, and Italy’s significant investment, these nations exemplify a collective dedication to transforming the automotive landscape. Though challenges persist, innovative strategies, financial incentives, and record-breaking sales signal a promising future where EVs play a pivotal role in fostering environmental consciousness. The road ahead may be electrifying, but it promises a greener, more sustainable planet.

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