Welcome to the latest edition of “The Electric Revolution Continues,” where we delve into the electrifying world of September 2023’s industry updates. As we stand at the forefront of a transformative era in the automotive landscape, electric vehicles are propelling forward with unprecedented momentum. This month’s highlights showcase remarkable shifts in various global markets, illustrating the accelerating adoption and undying enthusiasm for sustainable mobility.
In August, Strong EV Demand Drives a 37% Increase in German Sales
EV Sales Surge:
- Electric vehicle (EV) sales in Germany experienced an extraordinary surge, with a remarkable 171 percent increase in registrations during the previous month.
- This surge was largely attributed to the upcoming change in incentives for business buyers, scheduled to take effect on September 1st.
Incentives Driving Demand:
- The demand for EVs was significantly boosted by the anticipation of the imminent end of incentives for business buyers.
- Tesla’s strategy of offering additional discounts for company cars registered by the impending deadline further fueled the surge in EV sales.
- Several mass-market brands showed impressive growth in their sales figures for August:Smart, a standout performer, witnessed an astounding sales increase of 2,167 percent.
- Jeep’s volume grew by an impressive 225 percent.
- MG recorded a substantial sales boost of 176 percent.
- Suzuki saw a significant rise in registrations, with a growth rate of 174 percent.
Battery-Electric Car Registrations:
- According to data from the German motor transport authority (KBA), the total registrations for battery-electric cars in Germany reached 86,649 units in the month of August.
- Volkswagen (VW) maintained its dominance as the top-selling brand in the German automotive market, commanding an 18.3 percent market share.
- Chinese automakers continued to expand their presence in Europe’s largest market:
- BYD recorded 2,034 registrations for the month.
- Great Wall Motor sold 2,211 cars.
- Nio, another Chinese automaker, made notable inroads with 411 vehicles sold.
- Some brands faced challenges in August:
- DS experienced a notable decline in registrations, with sales down by 25 percent.
- Land Rover’s sales decreased by 10 percent.
- Jaguar’s volume dropped by 2 percent.
Gasoline and Diesel Sales:
- Despite the growth in EV sales, traditional gasoline and diesel cars continued to hold substantial market shares
- Gasoline car sales increased by 8.9 percent, representing a 27.6 percent market share.
- Diesel sales also rose by 9.2 percent, maintaining a 14.5 percent market share.
Plug-in Hybrid Registrations:
- In contrast to the growth in pure EV registrations, plug-in hybrid registrations experienced a significant decline of 41 percent.
Year-to-Date Market Performance:
- Over the course of the year, the German automotive market demonstrated a positive trend.
- Year-to-date sales figures showed a 17 percent increase, with a cumulative total of 1.91 million units sold.
BYD Atto 3 Outpaces 3 Years of Thailand's EV Sales by August 2023
Thailand's Leading Role in Southeast Asia EV Sales:
- Thailand has emerged as a leader in electric vehicle (EV) sales in Southeast Asia, with 43,472 units sold in the first 8 months of 2023.
- These sales account for a significant 9.58% of the total vehicle sales in the country for the same period, totaling 453,748 units.
Remarkable Growth in EV Sales:
- The number of EVs sold in Thailand in the current year has already surpassed the combined sales of the previous 3 years, reaching 43,472 units compared to 12,270 units.
- This substantial growth is attributed to government incentives and increased corporate investment in infrastructure, including charging stations.
BYD Atto 3 Dominance:
- The BYD Atto 3 has taken the lead in Thailand’s EV market in August 2023, with 1,770 units sold during that month.
- Cumulatively, the Atto 3 accounted for nearly 33% of the market share in Thailand in the year so far, with a total of 14,314 units sold. Notably, its 2023 figures alone surpassed the combined sales of EVs in the past 3 years.
Competition in the EV Market:
- The Neta V briefly took the lead in June but placed second in August with 1,251 units sold. Cumulatively, it reached 8,440 units sold in Thailand for the year.
- The Tesla Model Y secured the third position with 664 units sold in August and 4,503 units sold year-to-date.
- The Ora Good Cat ranked fourth in August, with 598 units sold, and stood as the fourth best-selling EV in Thailand in 2023, with a total of 3,712 units sold so far.
Introduction of BYD Dolphin:
- The BYD Dolphin, a newly launched EV model in Thailand, made its debut on the sales chart in August, ranking fifth with 481 units sold.
- BYD led in brand performance for August, with 2,266 units sold, followed by Neta with 1,251 units and MG with 1,149 units.
- EV sales in Thailand experienced a month-to-month growth, with 6,611 units sold in August, compared to 5,116 units in July.
Latin America's EV Market Share in H1 2023: A Growing Presence in Chile, Mexico, Dominican Republic, & Brazil
Chile (0.6% plug-in market share):
- Chile, despite having a relatively low plug-in market share of 0.6%, boasts one of the most comprehensive charging networks in the region.
- It has recently surpassed Colombia to become the country with the largest electric bus fleet outside of China.
- In H1 2023, Chile saw 777 Battery Electric Vehicles (BEVs) and 154 Plug-in Hybrid Electric Vehicles (PHEVs) sold, accounting for a 0.5% and 0.1% market share, respectively.
- The market share figures specifically pertain to light vehicles, as data on electric trucks and buses is not specified.
- The data shows that Chile leans heavily towards BEVs, with a 40% year-over-year increase in BEV sales while PHEV sales declined by nearly 40%.
- Despite economic challenges such as severe inflation and an overall reduction in vehicle sales, EVs continue to hold appeal.
Mexico (1% plug-in market share):
- Mexico has reached a significant milestone with a 1% plug-in market share.
- The country has experienced exponential growth in EV sales, with an increase of 90% in 2021, 120% in 2022, and 80% so far in 2023.
- During the first five months of 2023, Mexico saw 4,132 BEVs (0.75% market share) and 1,966 PHEVs (0.35% market share) sold among a total of 560,680 light and heavy vehicles.
- BEVs have been the primary driver of growth, with a 400% increase in 2022 and 190% year-over-year growth in 2023.
- Mexico is a significant player in both ICE and EV manufacturing in Latin America, attracting brands like Tesla, JAC, Kia, BMW, GM, Ford, Audi, Jetour, MG, and more.
- The country’s EV market is expected to continue expanding, driven by various brands establishing manufacturing operations in Mexico.
- While specific sales data per brand or model is not available, the locally produced JAC E10X is expected to perform well due to its relatively affordable price.
Dominican Republic (1 to 2.5% BEV market share in 2022):
- The Dominican Republic holds significance in the Latin American EV landscape, although it lacks accessible public data.
- In October 2022, the country had sold 598 BEVs, but more recent data is unavailable.
- Market share calculations are influenced by the classification of “jeep-like vehicles” (yipetas) in the vehicle category.
- Depending on whether these vehicles are included or excluded, BEV market share varies, ranging from 1% to an impressive 2.5% among “regular” cars.
- The Dominican Republic’s EV market is challenging to analyze due to limited data, but notable brands like BYD, Tesla, and Hyundai were reported to perform well.
Brazil (1.6% plug-in market share):
- Brazil, as Latin America’s largest car market, has a growing but protected EV market.
- In the first 6 months of 2023, the country saw a total of 3,777 BEVs (0.4% market share) and 11,475 PHEVs (1.2% market share) sold among 933,524 vehicles.
- Unlike many other countries, Brazil has experienced stagnant BEV sales (only 11% growth in H1 2023) but booming PHEV sales (205% growth in H1 2023).
- The combined result is a slightly lower BEV market share year-over-year.
- Brazil’s macroeconomic stability and low interest rates have contributed to its growing vehicle market.
- The top-selling plug-ins in Brazil appear to be primarily PHEVs, with models like the Chery Tiggo 5X, Volvo XC60, GWM Haval H6, Chery Tiggo 8, and BYD Song Plus leading the market.
VinFast's Expansion: Initiating Operations in Indonesia and Outlining Further Asian Market Growth in 7 Regions
VinFast's Expansion in Southeast Asia:
- Vietnamese automaker VinFast plans to enter Southeast Asia.
- Initial focus: Setting up operations in Indonesia by early 2024.
Expansion Strategy in Indonesia:
- Begin vehicle distribution to dealer-partners in 2024.
- Build a $200 million plant to produce electric cars by 2026.
Vehicle Models and Market Dynamics:
- Plan to deliver right-hand driving models VF e34 and VF 5 initially.
- Indonesia: Most populous country in Southeast Asia with over 270 million people.
- Largest car market with annual sales exceeding a million vehicles.
- Lowest fuel prices per liter in Southeast Asia.
Adaptation for Indonesia's Market:
- Adapting to right-hand drive market in Indonesia.
- Plan to reformat the existing production line to meet demand.
Identification of Key Asian Markets:
- Seven additional markets identified for potential expansion.
- Initial locations: Cambodia, Laos, Myanmar, and the Philippines for left-hand drive markets.
- Future retooling for right-hand drive countries: Malaysia, Thailand, and Singapore.
Engagement and Participation:
- VinFast representative to visit the Philippines and participate in the Philippine Electric Vehicle Summit.
Government Support and Industry Trends in Indonesia:
- Indonesia’s Ministry of Transportation providing incentives to support electrification since 2013.
- Various policies promoting plug-in hybrids, hybrid EVs, and end-to-end EV supply chain.
Investment and Production Plans:
- Preliminary investment target of up to approximately $1.2 billion into Indonesia in the long-term.
- Target production start date for the CKD facility in 2026 with an estimated production capacity of 30,000 to 50,000 cars per year.
VinFast's Overall Growth and Expansion:
- VinFast, owned by Vingroup, listed on Nasdaq, valued at over $85 billion.
- Planned overseas plants in Indonesia and North Carolina.
- Shifting focus to electric vehicles by dropping the internal combustion engine line.
- Future plans: Expansion into India, Malaysia, the Middle East, Africa, Latin America, and Europe, identifying 40 to 50 potential markets.
Anticipated Quadrupling of EV Sales in Malaysia for 2023, According to BMI
EV Sales Forecast for Malaysia:
- BMI, a Fitch Solutions company, predicts quadrupling of electric vehicle (EV) sales in Malaysia for the year 2023.
- The expected EV penetration rate in Malaysia is projected to be 1.8%.
Factors Driving EV Adoption:
- Volvo and Mercedes-Benz’s local EV manufacturing setups are expected to drive interest and demand for EVs in Malaysia.
- Mercedes-Benz aims for 30% of its vehicle sales in Malaysia to be electrified by 2030 due to the high EV penetration rates in the country.
Increased Market Choices:
- A growing number of automakers are entering the Malaysian market, providing consumers with a wider range of EV options.
Entrance of Key Players:
- Tesla plans to establish a regional headquarters and service facility in Malaysia.
- Neta, a Chinese EV brand by Hozon New Energy Auto, has also entered the Malaysian market.
Local Manufacturer's EV Roadmap:
- Proton Holdings Bhd, a Malaysian automotive manufacturer, has presented its electrification roadmap, encompassing hybrid, plug-in hybrid EVs, and full battery EVs.
Government Incentives for EVs:
- The Malaysian government has extended import duty exemptions for EV components and full excise tax and sales tax exemptions for completely knocked down (CKD) EVs.
- Total exemptions for completely built-up (CBU) EVs have been extended as well.
Stimulating Local EV Production:
- Duty exemptions on EV parts are expected to incentivize local EV production and encourage existing automakers to electrify their model line-ups.
- This move is likely to attract new car manufacturers to enter the Malaysian market.
Support for EV Infrastructure:
- Malaysian-based manufacturers of EV charging infrastructure are fully exempted from income tax up to 2032.
Commercial EV Market:
- Malaysia aims to have 100,000 EVs on its roads by 2030, with a significant portion (50,000) being commercial EVs.
Government Initiatives for EV Adoption:
- The Malaysian government has announced a road tax exemption for EVs until December 31, 2025, to promote the adoption of electric vehicles.
The electric revolution is on an unstoppable trajectory, and the insights from September 2023’s industry highlights exemplify the undying commitment to a cleaner and greener future.
From surging sales in Germany, impressive milestones in Thailand, Latin America’s burgeoning market share, VinFast’s strategic expansions, to Malaysia’s quadrupling EV sales, the global shift towards electric vehicles is undeniable. Stay tuned for more updates as we continue to witness this monumental transformation unfold. The wheels of change are in motion, and the journey is electrifying.