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Insights Tag： Passenger vehicle sales

Mercedes Fends off VW in Europe EV Market

  • Europe’s EV market grew 17% YoY in Q3 2022 despite an 8% overall passenger car sales decline.
  • Germany continued to lead the European EV market by taking a 33% share of the sales.
  • The top 10 EV models accounted for 27% of EV sales in Q3 2022.

New Delhi, London, Beijing, San Diego, Buenos Aires, Hong Kong, Seoul – December 20, 2022

Europe’s passenger electric vehicle (EV) sales* increased 17% YoY in Q3 2022, according to the latest research from Counterpoint’s Global Passenger Electric Vehicle Model Sales Tracker. Battery electric vehicles (BEVs) accounted for 61% of total EV sales during the quarter. Germany was the region’s largest market with a third of the total volume, followed by the UK and France.

Commenting on the market dynamics, Vice President of Research Peter Richardson said, “The overall European automotive market has declined for three quarters due to a mix of economic pressures and supply chain disruption. However, major European automotive-producing countries like Germany, UK, Italy and Spain have shown some growth in sales this quarter with EVs being a relative bright spot.”

Europe Top 5 EV Brands' Sales share_Counterpoint
Source: Global Passenger Electric Vehicle Model Sales Tracker, Q1 2018-Q3 2022

Market summary

Mercedes-Benz continued to lead Europe’s EV market with a 9.2% share in Q3 2022. BEVs accounted for 35% of its total EV sales with 75% YoY growth. Its plug-in hybrid EV (PHEV) models include the GLE-Class, GLC-Class and C-Class, while its top-selling BEV models are the EQB, EQA and EQC. Although Mercedes leads Europe’s EV sales, it has failed to find a place in the top 10 best-selling models list. Mercedes has 20 models to offer, the highest among all automakers, and most of them have a similar sales share of less than 1%.

Volkswagen took a sales hit in Q2, losing 44% of EV sales YoY. But its supply chain recovered in Q3, enough for it to surpass BMW to become the second largest EV brand with a market share of 8.9%. Its BEV model range is led by the ID series, which includes the ID.3, ID.4 and ID.5 models. It also significantly improved shipments of its PHEV models.

BMW slipped to the third position, taking 8.6% volume share. Its BEV range contributed to 45% of its EV sales. Its top-selling BEV model was the i3 followed by the i4 and iX. The X5 was its best-selling PHEV model, followed by the 3 series and X3.

Among other top-selling brands, Tesla significantly improved its sales from the previous quarter and broke into the top five brands list again. In September, the Model Y was the best-selling EV model in Europe, accounting for 70% of Tesla’s sales.

The top 10 EV models in Europe contributed to around 27% of the EV market in Q3 2022. Best-selling EVs in Q3 were the Tesla Model Y, Volkswagen ID.4 and Ford Kuga.

Europe Top 10 EV Models' Sales Share, Q3 2022_Counterpoint
Source: Global Passenger Electric Vehicle Model Sales Tracker, Q1 2018-Q3 2022

Commenting on the market outlook, Associate Director Mohit Agrawal said, “We expect the European EV market to remain just under 2.5 million unit sales in 2022. European governments are investing heavily in charging infrastructure, which is helping ease consumer anxiety about adopting EVs. This shift is evident in Counterpoint’s Global Passenger Vehicle Model Sales Tracker. Currently, luxury car brands like Mercedes and BMW are leading EV sales because of the combination of EV and PHEV offerings. But once the affordable mainstream European brands like Renault, Volkswagen and Peugeot strengthen their EV portfolios, we expect overall EV sales volumes to move sharply higher.”

*Sales here refer to wholesale figures, i.e. deliveries out of factories by respective brands/companies.

*The countries in this study include Austria, Belgium, Bulgaria, Croatia, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Luxembourg, Netherlands, Norway, Poland, Portugal, Romania, Russia, Slovakia, Slovenia, Spain, Sweden, Switzerland, UK and Ukraine.

*Under electric vehicles (EVs), we are considering only battery EVs (BEVs) and plug-in hybrid EVs (PHEVs). Hybrid EVs and fuel cell vehicles (FCVs) are not included in this study.

The comprehensive and in-depth ‘Global Passenger Electric Vehicle Model Sales Tracker: Q1 2018-Q3 2022’ is now available for purchase at report.counterpointresearch.com.

Feel free to reach us at press@counterpointresearch.com for questions regarding our latest research and insights.

Background

Counterpoint Technology Market Research is a global research firm specializing in products in the technology, media and telecom (TMT) industry. It services major technology and financial firms with a mix of monthly reports, customized projects and detailed analyses of the mobile and technology markets. Its key analysts are seasoned experts in the high-tech industry.

Analyst Contacts

Soumen Mandal

Mohit Aggarwal

Peter Richardson

Counterpoint Research

press@counterpointresearch.com

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European EV Market Grew 16% in Q2 2022 led by Mercedes

  • Mercedes-Benz overtook Volkswagen to become the top-selling EV brand in Europe.
  • Germany leads the European market with 28% market share.
  • The top 10 EV models accounted for almost one-fourth of EV sales in Q2 2022.

New Delhi, London, Beijing, San Diego, Buenos Aires, Hong Kong, Seoul – October 10, 2022

Europe’s passenger electric vehicle (EV) sales* increased 16% YoY in Q2 2022, according to the latest research from Counterpoint’s Global Passenger Electric Vehicle Model Sales Tracker. Battery electric vehicles (BEVs) accounted for 55% of total EV sales during the quarter. Germany, with a 28% share, remained the European EV market leader, followed by France with 16% and the UK with 14%. Among other European nations, Spain and the Netherlands were the fastest growing EV markets, nearly doubling their sales on a YoY basis. However, Norway had the highest EV sales penetration (85%) among European countries and also globally.

Commenting on the market dynamics, Vice President of Research Peter Richardson said, “Europe’s automotive market has been hit by a series of events. The supply chain disruption due to the Russia-Ukraine war had a serious negative impact. The supply crunch of vehicle wiring harnesses and other important components, together with a lack of critical raw materials, forced automakers across Europe, especially in Germany and the UK, to cut vehicle production for several weeks. Moreover, to show solidarity with Ukraine, most automakers halted their businesses in Russia, further hurting sales performance during Q2. Additionally, rising inflation and currency devaluations have pushed raw material costs higher.”

Market Summary

The top five brands accounted for only 36% of the total EV sales across Europe in Q2 2022. Europe is one of the most competitive EV markets where OEMs must fight hard for relatively small market shares. This ensures that most OEMs have similar market shares with a difference of only a few points.

Mercedes-Benz
Leading the pack, Mercedes-Benz accounted for around 9.2% of the total EV sales across Europe during the quarter. Last year, the company announced it would stop the development of internal combustion engines and strengthen its focus on electrification instead. Although the company had the highest number of EV sales across Europe, BEV sales accounted for only 28% of its total EV sales. The company’s present portfolio is strong. Its plug-in hybrid electric vehicle (PHEV) models include the GLC-Class, GLE-Class and C-Class, while its top-selling BEV models are the EQA, EQB, and EQE.

BMW
BMW, an early adopter of electrification, was the second-best selling EV brand in Europe in Q2 2022. BMW had a 9.1% share of the EV market in Europe during the period. The PHEV segment accounted for 71% of the company’s total EV sales. The BMW X series and the BMW 3 series cars dominated the PHEV segment, while the company’s i-Series models, namely the iX, i4 and i3, were the flagbearers of its BEV segment.

Volkswagen
Among European OEMs, Volkswagen was hurt the most from the Russia-Ukraine war. Supply chain disruptions and component shortages reduced the company’s sales by 44% YoY during Q2 2022. Volkswagen, one of the largest auto OEMs, was able to secure just 6.2% of Europe EV sales during the quarter. The company is betting on its ID series cars to dominate the EV market. Presently, 64% of EVs sold by Volkswagen are from the ID series alone.

Among other brands, Tesla’s performance fell short of expectations even though its Berlin Gigafactory started production in March 2022. Tesla sales in Europe fell 51% YoY during Q2 2022 mainly due to production halts at its China operations in April and May, stemming from supply issues and restrictions related to the pandemic. A major proportion of Tesla cars sold in Europe is imported from China.

Europe Top 5 EV Brands, Sales Share Q2 2022
Source: Global Passenger Electric Vehicle Model Sales Tracker: Q1 2018 – Q2 2022

Commenting on the EV ecosystem development, Research Vice President Neil Shah said, “Europe is one of the more mature EV markets. EV sales in Europe have gained traction, thus incentives and subsidies related to EV sales have reduced to almost nil in most European nations. Presently, Europe is looking to strengthen its charging infrastructure and battery recycling ecosystem. A strong charging infrastructure network is likely to boost EV penetration. Among European nations, the Netherlands has the highest density of EV charging stations. Alongside governments, private players, such as Webasto, Free2Move, EVBox, Shell and BP, are teaming up with OEMs to set up a network of charging stations across Europe.”

Shah added, “Apart from developing a strong network of charging stations, the rising demand for EVs is leading to the rise of battery recycling plants. Battery recycling plants are necessary to control e-waste and to recycle valuable metals that can be used in new batteries.”

Europe Top 10 EV Models' Sales Share, Q2 2022
Source: Global Passenger Electric Vehicle Model Sales Tracker: Q1 2018 – Q2 2022

The top 10 EV models in Europe contributed to around 23% of the EV market in Q2 2022. Bestsellers were the Fiat 500, followed by the Tesla Model Y and Peugeot 208. In the year-ago quarter, none of these EVs were among the top five. The change in the market was due to multiple production shutdowns and delays in shipments faced by OEMs. In 2021, the top-selling EV models were the Renault ZOE, Volkswagen ID.4 and Skoda Enyaq iV. In Q2 2022, eight out of the top 10 EV models sold in Europe were BEVs.

Commenting on the market outlook, Associate Director Mohit Agrawal said, “EV sales are expected to exceed 2.5 million units by the end of 2022, according to Counterpoint’s Global Passenger Vehicle Forecast. The market is expected to be slow due to component shortages, economic turmoil and geopolitical tensions. Still, one in every five cars sold in Europe will likely be an EV by the end of this year. In 2021, EV sales in Europe accounted for 15% of total passenger vehicle sales.”

 

*Sales here refer to wholesale figures, i.e. deliveries out of factories by respective brands/companies.

*Under electric vehicles (EVs), we are considering only battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs). Hybrid electric vehicles and fuel cell vehicles (FCVs) are not included in this study.

The comprehensive and in-depth ‘Global Electric Passenger Vehicle Sales Tracker, Q1 2018-Q2 2022’ is now available for purchase at report.counterpointresearch.com.

Feel free to reach us at press@counterpointresearch.com for questions regarding our latest research and insights.

Background

Counterpoint Technology Market Research is a global research firm specializing in products in the technology, media and telecom (TMT) industry. It services major technology and financial firms with a mix of monthly reports, customized projects and detailed analyses of the mobile and technology markets. Its key analysts are seasoned experts in the high-tech industry.

Analyst Contacts

Soumen Mandal

 

Neil Shah

Peter Richardson

Counterpoint Research

press@counterpointresearch.com

 

Related Reports:

India Automotive Industry: Struggling in 2020?

Demand for new cars declined sharply in 2019, forcing automakers to cut production across the year. Sales were expected to revive during the annual festive season from October 2019 but failed to do so. In fact, there was an encouraging spike in sales in Q3 – stimulated by promotional offers, aggressive discounts, new model launches, and the increasing availability of models offering Bharat Stage-VI (BS-VI) emission standard. However, volumes dipped soon after the season was over. Counterpoint Research expects the negative month-on-month sales trend will continue in Q1 2020. Despite continued difficulties, we expect the overall YoY decline to moderate over the rest of the year, with anticipation of economic interventions and industry stability.

Exhibit 1: Vehicle Sales in India (‘000 Units), H2 2018 vs H2 2019

Counterpoint India Auto Sales 2019 vs 2018

 

Political, economic and consumer-led factors will carryover from 2019 to impact sales in 2020. These include stringent environmental and safety regulations, a moderating economy, the increasing popularity of shared mobility, political uncertainty, increasing insurance norms and cautious lending.

Elaborating on these factors:

Stringent Environmental and Safety Regulations:

  • Over 2019, automotive OEMs scrambled to comply with additional mandated safety equipment requirements including anti-lock/combined braking systems, driver side airbag, speed warning alarm, rear parking sensors, front seatbelt reminders, and crash test standards. All adding to investment costs and increased pricing to customers across all models.
  • The impact of mandates introduced in 2018, e.g. five-year third-party insurance premium for two-wheelers to be collected in advance, had its full-year effect in 2019 on overall vehicle sales, and on two-wheeler sales in particular. These continue to bite.
  • By April 2020, all vehicle types, two- and three-wheelers, cars and commercial vehicles – are mandated to conform to BS-VI emission standards, with cost increases estimated to be between 5-10%. Having increased prices already at the beginning of January 2020 by 2-3% to offset economic cost increases, OEMs are faced with the dilemma of potentially absorbing some of the extra costs or lost volumes.

Moderating Economic Growth:

  • The global economic slowdown has impacted the Indian automotive sector (and Europe and China). India’s GDP growth in Q3 2019 fell to 4.5% from 5% in Q2, and from 7.1% a year ago, resulting from lowered consumer spending and reduced private investment. A depressed rural economy with the lower annual rainfall continues to have a significant impact on two-wheeler demand.
  • Growing unemployment and a moderating economy led people to postpone vehicle buying decisions. According to the Centre for Monitoring Indian Economy (CMIE), the unemployment rate was at 8.5% in October 2019, the highest since August 2016. Inflation rose to 3.99% in September 2019 from 3.18% in June.
  • The International Monetary Fund has cut its growth forecast for the Indian economy from 7% to 6.1% in 2020.

Growing Popularity of Shared Mobility:

Shared mobility providers continue to dent the demand for passenger vehicles in urban areas, with people increasingly preferring shared-mobility services for their commute. Based on primary research conducted in the country in 2019, Counterpoint Research estimates two out of three frequent users of shared mobility services consider ride-hailing more economical than owning a car. Leading players Ola and Uber have plans to expand services further into tier-2 and tier-3 cities in the next few years.

Cautious Lending by NBFCs:

Non-banking financial companies (NBFCs) finance most vehicle purchases, particularly in rural India. Dealers depend on NBFCs to fund their wholesale purchasing of vehicles from OEMs. The recent solvency issues surrounding India’s NBFCs led to cautious lending that has adversely affected automotive sales in 2019 and shows no signs of abating. OEMs and dealers have approached India’s Finance Industry Development Council, seeking government intervention to improve the financial health of leading NBFCs.

Exhibit 2: Indian Automotive Industry – Impact of Key Factors

Reasons for slowdown in India auto Industry

Growing Competition:

In spite of the apparent slowdown, MG Motors (part of SAIC Group), BYD and other leading Chinese OEMs including Changan Automobile and Great Wall Motors have serious investment plans for India and are showcasing their proposed models at this year’s Delhi Auto show. Bucking the trend MG Motors and Korean automaker Kia Motors have had strong launches of their recent SUV models, receiving significant orders months in advance. With the increased competition in passenger cars in 2020, Counterpoint estimates these new automakers will nibble away at Maruti Suzuki’s and Tata Motors’ market shares.

Exhibit 3 –  Two-Wheelers and Passenger Vehicles Sales, India, 2018-2021

India auto sales

Conclusion:

Overall for 2020, Counterpoint Research’s automotive sales forecast for India remains cautious, with several factors – particularly tight credit conditions, the moderating economy and the transition to BS-VI emissions standards – creating uncertainty, obstacles and delays.

 

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