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US EV Sales Up 79% YoY in Q1 2023 Helped by Tax Credit Subsidy

  • Tesla sold more EVs than the next 18 automotive groups combined in Q1 2023.
  • Brands like Hyundai, Audi, BMW, Volvo and Nissan remain ineligible for the EV tax credit.
  • US EV sales expected to reach near 1.5 million units in 2023 if economic conditions continue to improve.

New Delhi, London, San Diego, Buenos Aires, Hong Kong, Beijing, Seoul – June 15, 2023

US passenger electric vehicle* (EV) sales soared over 79% YoY in Q1 2023, according to the latest research from Counterpoint’s USA Passenger Electric Vehicle Model Sales Tracker. This strong growth helped the US surpass Germany to become the world’s second-largest EV market, the largest being China. Battery EVs (BEV) accounted for 81% of all passenger EV sales in the US while plug-in hybrid EVs (PHEVs) made up the rest. In Q1 2023, Tesla’s sales outperformed the combined sales of the next 18 automotive groups, which collectively represent 34 automotive brands.

Commenting on the market dynamics, Research Analyst Abhik Mukherjee said, “Total US passenger vehicle sales improved YoY in Q1 2023. The US economy is showing signs of recovery with lower inflation and improving consumer sentiment. Although EV sales saw strong growth during the quarter, those of conventional passenger vehicles remained flat. One reason was the introduction of an EV tax credit of up to $7,500, which has played a crucial role in driving up EV sales. Currently, around 20 models in total offered by Tesla, GM, Ford, Stellantis, Rivian and Volkswagen are eligible for the tax credit. However, strict eligibility conditions set by the US government have excluded brands such as Hyundai, Nissan, BMW, Audi and Volvo from benefiting from the EV tax credit scheme in 2023.”USA BEV and PHEV Sales share - Q1 2023

The top 10 EV models in the US accounted for 69% of overall passenger EV sales during the quarter. Tesla’s Model Y retained its title of the best-selling EV model, while it also earned the title of best-selling passenger car model globally. Apart from BEVs, PHEVs are also gaining popularity in the US.Top Models Q1 2023 - US EV sales

Commenting on the market outlook, Research Director Jeff Fieldhack said, “With the US economy showing signs of recovery, the auto industry, particularly the EV sector, is being helped by government policies announced last year. Tax credits for new and even used EVs are helping consumers, while investments in streamlining the EV battery supply chain, the establishment of a robust network of EV charging stations and the setting up of battery recycling plants nationwide will all support EV sales growth. Therefore, we expect US EV sales to reach around 1.5 million units in 2023 if economic conditions continue improving.”

*Sales refer to wholesale figures, i.e. deliveries from factories by the respective brand/company.

*For EVs, we consider only BEVs and PHEVs. Hybrid EVs and fuel cell vehicles (FCVs) are not included in this study.

The comprehensive and in-depth ‘USA Passenger Electric Vehicle Sales Tracker, Q1 2018-Q1 2023’ 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 TMT (technology, media and telecom) 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

Abhik Mukherjee

Soumen Mandal

Neil Shah

Jeff Fieldhack

Counterpoint Research

press@counterpointresearch.com

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Global EV Sales Up 32% YoY in Q1 2023 Driven by Price War

  • One in every seven cars sold during Q1 2023 was an EV.
  • Tesla Model Y becomes the best-selling passenger car model globally for the first time ever.
  • EV sales are expected to reach over 14.5 million units by the end of 2023.

New Delhi, London, San Diego, Buenos Aires, Hong Kong, Beijing, Seoul – June 7, 2023

Global passenger electric vehicle* (EV) sales in Q1 2023 rose 32% YoY, according to the latest research from Counterpoint’s Global Passenger Electric Vehicle Model Sales Tracker. One in every seven cars sold during Q1 2023 was an EV. Battery EVs (BEVs) accounted for 73% of all EV sales during the quarter, while plug-in hybrid EVs (PHEVs) made up the rest.

The US surpassed Germany to become the world’s second-largest EV market in Q1 2023 while China remained the leader. In China, EV sales experienced a remarkable 29% YoY growth, despite a 12% decline in overall sales of passenger vehicles in the country. In the US, EV sales soared over 79% YoY during the quarter. The top 10 automotive groups, encompassing 48 automotive brands, dominated the global EV market in Q1 2023, capturing three-fourths of the total global EV sales.

Commenting on the market dynamics, Research Analyst Abhik Mukherjee said, “Global EV sales were largely driven by China with 56% of total EV sales in Q1 2023 coming from this market. The elimination of the NEV purchase subsidy in China resulted in lower-than-expected EV sales in January 2023. Tesla slashed prices for its models globally in January, following which other automotive brands announced similar cuts for their car models starting in February, which led to an improvement in EV sales. During February and March, almost 40 automakers, including BYD, NIO, Xpeng, Volkswagen, BMW, MercedesBenz, Nissan, Honda and Toyota, reduced their vehicle prices by a couple of hundred dollars to tens of thousands of dollars, which eventually stoked a competitive price war in China. Initially, it was thought that the price war would end soon and that auto OEMs would benefit from increased sales. However, as the price war continues to stretch, several automakers in China have reported reduced earnings and even losses.”

Global passenger EV Sales share Q1 2023

The top 10 EV models accounted for 37% of the total passenger EV sales in Q1 2023. Tesla’s Model Y remained the best-selling model globally followed by Tesla’s Model 3 and BYD’s Song. In Q1 2023, Tesla’s Model Y achieved the notable distinction of becoming the best-selling passenger car model worldwide, surpassing even conventional fuel vehicles.

Global passenger EV Sales model rank Q1 2023

Commenting on the market outlook, Senior Analyst Soumen Mandal said, “Although sales of the traditional internal combustion engine (ICE) vehicles remained stable in Q1 2023 compared with that in the year-ago period, the significant growth in EV sales indicates a rapid transition from traditional vehicles to EVs.”

“By the end of 2023, global EV sales are expected to surpass 14.5 million units, according to our forecast. With the implementation of the EV tax credit subsidy in the US, EV sales in the country are projected to significantly increase this year. To meet the eligibility criteria for the tax credit, automotive OEMs are moving to partner with battery suppliers and establish battery manufacturing plants across North America. Consequently, the US is poised to surpass the EU in the race to build EV batteries.”

*Sales refer to wholesale figures, i.e. deliveries from factories by the respective brand/company.

*For EVs, we consider only BEVs and PHEVs. Hybrid EVs and fuel cell vehicles (FCVs) are not included in this study.

The comprehensive and in-depth ‘Global Passenger Electric Vehicle Sales Tracker, Q1 2018-Q1 2023’ 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 TMT (technology, media and telecom) 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

Abhik Mukherjee

Soumen Mandal

Neil Shah

 Peter Richardson

 

 Counterpoint Research

press@counterpointresearch.com

Related Posts

Google Puts Auto Expansion in Top Gear

  • Google has been making news in the automotive industry this year. First, with the announcement of HD Maps to support assisted driving and then with a partnership with Mercedes Benz to develop Mercedes-branded navigation.
  • Google’s deal with Mercedes is interesting. Google will be licensing services including YouTube and map data to Mercedes but without the automotive OS, and it will not control the data.
  • Apple sees the growth potential in the auto industry and likely wants a piece of the pie. This is hinted by Apple’s move to introduce next-generation CarPlay, which will deeply integrate with the vehicle to take over interior screens and instrument cluster.

Since the beginning of 2023, Google has been making news in the automotive industry. First, with the announcement of HD Maps to support assisted driving and then with a partnership with Mercedes Benz to develop Mercedes-branded navigation. The nature of this partnership is unfamiliar to Google; the company usually wants to be in control of the data. So, the question is why Google chose to form this uncommon partnership. To answer this, we have to look at Google’s automotive journey.

Google’s entry into automotive industry

Google is ubiquitous in smartphones thanks to the strong Android user base. The company wanted to bring the same Google services experience to the car through in-vehicle infotainment (IVI). Android Auto bridged the gap between smartphones and cars and allowed its customers to use Google-based apps for navigation, entertainment and communication, as well as Google Assistant. Over time, Android Auto started gaining popularity as users liked being able to have a similar experience across their phones and vehicles, and additionally use free services like Google Maps. According to Counterpoint Research estimates, around 90% of car models sold in the US in 2022 support Android Auto.

Source: Counterpoint Analysis

This is a strong performance, but it was not an easy road for Google/Android Auto to get accepted by auto OEMs as data privacy concerns always loom around Google. Companies like Hyundai, Kia, Volkswagen, GM and Honda were early adopters of Android Auto, while others, including BMW, Toyota, Lexus, Jaguar Land Rover and Infiniti, didn’t introduce Android Auto compatibility until 2018-2020 after getting repeated requests from owners. In the US, the Android installed base is slightly close to 50%, whereas in Europe it is over 70% and close to 80% for the global market. Therefore, it is not surprising that most drivers from these brands own phones running on Android.

Source: Counterpoint Analysis

Google’s ambitious plan to capture automotive market

Google set its sights beyond IVI to take on the challenge of autonomous vehicles (AV) and software-defined vehicles (SDV) with the 2016 formation of Waymo, which started as a self-driving research project, and the announcement of Android Automotive OS, an expansion of its Android Auto initiative. Android Automotive OS (AAOS) is an open-source OS, somewhat replicating Google’s smartphone OS strategy. Running directly on in-vehicle hardware (i.e. head unit), it is a highly modular and full-stack open platform and supports apps built for Android as well as those built for Android Auto.

One standout feature is that AAOS has a suite of applications and services called Google Automotive Services (GAS), which is often marketed as Google Built-in by automakers. The GAS suite offers options to carmakers to integrate different services from Google, like Maps, Play Store and Assistant, directly into the vehicle without the need for an Android smartphone. Automakers can obtain GAS through a licensing fee on top of Android Automotive.

Currently, there are around 20 models available with Android Auto. The latest addition to the list is the 2023 Honda Accord. Several other automakers have announced plans to move to AAOS, but not every automaker is interested in GAS. We list below some major automakers and their plans to use Android Auto and Google services.

Volvo and Polestar: Volvo brand Polestar, with its Polestar 2, was the first automaker to adopt Android Automotive with GAS integration. Volvo’s first all-electric XC40 Recharge was also the first car to run on Android Automotive. In 2022, Volvo announced from 2023 onwards would be equipped with Google infotainment.

Renault-Nissan-Mitsubishi: In 2018, the alliance announced a partnership with Google to run its infotainment systems on Android Automotive. Renault’s Megane E-Tech was the first car to run on Android OS with GAS. In 2022, the Renault Austral was launched based on Android Automotive. Nissan and Mitsubishi have not announced any plans to launch models based on Google.

General Motors: In 2019, GM announced that its in-vehicle infotainment system would be powered by Android Automotive and feature Google apps and services for vehicles starting 2021. The GMC Hummer EV became the first GM car to be run on Android Automotive with GAS integration. Later, in 2022, mainstream models like the Chevrolet Tahoe, Chevrolet Suburban, Chevrolet Silverado, GMC Sierra and GMC Yukon were launched with Google Built-in.

Stellantis: Before the merger between PSA and FCA, PSA Group announced that Android Automotive would be powering its in-car infotainment system starting from 2023 models. In a different approach, FCA launched the Uconnect 5 based on Android Automotive but without GAS. But after the merger of both brands into Stellantis, the whole group is integrating AAOS for the IVI system.

Ford: Joining its US rival GM, Ford announced a partnership with Google in 2021 to run its SYNC infotainment system, which currently runs on Blackberry QNX OS. Ford plans to integrate GAS into its vehicles from late 2023 onwards.

Honda: The Japanese company was one of the early adopters of Android Automotive OS for the in-car infotainment system with its Honda Connect, based on NVIDIA’s Tegra processor. In 2021, Honda announced the integration of GAS into its vehicles from H2 2022. The 2023 Accord is the first Honda car with Google Built-in services.

BMW: The German brand took a different approach, announcing in 2022 that its new BMW OS 9 would be built on Android Automotive OS. But due to data privacy concerns, it is reluctant to integrate GAS. BMW is also an investor in navigation services provider HERE Technologies.

Lucid: The American company adopted Android Automotive OS for infotainment but did not integrate GAS.

Porsche: The Volkswagen brand was one of the few carmakers that only offered Apple CarPlay but not Android Auto for many years. Porsche released its first car with Android Auto only in 2022. The VW group is facing a lot of criticism due to software issues that are delaying the launch of electric models from its brands Porsche, Audi and Bentley. Hence, Porsche is looking at a strategy shift by taking into account Android Automotive OS and integrating GAS, which will include Google Maps, Google Assistant and Google Play Store, into its IVI.

Google built-in by major automakers

Google’s road ahead

Google’s deal with Mercedes is interesting. Google will be licensing services including YouTube and map data to Mercedes but without the automotive OS, and it will not control the data. This shift in Google’s approach shows that it is willing to change its strategy to build trust with automakers, especially the Germans who are known to be apprehensive about data privacy.

With the major trends of electrification and ADAS/Autonomous Driving (AD), and some of the EV models already equipped with Google Maps, Google has been adding EV-related features such as EV routing and searching for charging stations in in-vehicle Google Maps. Besides, Google has announced HD Map support for Level-2 hands-free driving and Level-3 driving systems. HD Map will roll out first in the Volvo EX90 and Polestar 3.

Google Maps is challenging the territory of established players like HERE and TomTom. We expect Google will further develop its in-vehicle navigation to make EV use easier and support higher levels of automated driving.

Lastly, the next-generation vehicles will be software-defined vehicles. This will allow companies to generate various recurring software revenue streams. As a result, the car software market will grow. Apple sees this growth potential in the auto industry and likely wants a piece of the pie. This is hinted by Apple’s move to introduce next-generation CarPlay, which will deeply integrate with the vehicle to take over interior screens and instrument cluster, and allow users to control climate and radio. So far, 14 automakers have confirmed to integrate new CarPlay, which is set to launch in late 2023. Therefore, in the future, we may see Apple developing complete software that runs on the vehicle without a partner iPhone, similar to Android Automotive. There are reports that indicate Apple is working on its ‘Apple Car’ as several patents related to cars have been filed by the company. This will allow Apple to replicate its strategy of using its software and services to monetize its hardware.

Therefore, in the era of software-defined vehicles, we may see the next round of battle between tech giants Google and Apple, this time for supremacy in the automotive OS, which will be the heart and soul of the car.

Connected Car Sales Grew 12% YoY in 2022 With Volkswagen Group in Lead

  • Volkswagen Group led in connected car sales, closely followed by Toyota Group.
  • 4G cars captured more than 95% of connected car sales in 2022.
  • Tesla broke into the top-10 connected car sales rankings for the first time.

New Delhi, London, San Diego, Buenos Aires, Hong Kong, Beijing, Seoul – April 24, 2023

Global connected car sales* grew 12% YoY in 2022 with the share of connected cars in the overall car sales exceeding 50%, according to the latest research from Counterpoint’s Smart Automotive Service. The US remained the strongest market for connected cars followed by China and Europe. These three markets accounted for nearly 80% of the total connected car sales globally in 2022. Despite having a relatively small share of connected car sales, Japan experienced the highest growth in connected car penetration.

Commenting on the market dynamics, Research Analyst Abhilash Gupta said, “The penetration of connectivity in cars improved during 2022 after struggling in 2020 and 2021. In 2022, new facelift versions of older models like the Honda Civic, Toyota Corolla, Ford Escape and Chevrolet Equinox were introduced with upgraded 4G connectivity and new features. Some prominent features include remote lock/unlock, remote engine start/stop, climate control, vehicle status, location tracking, geofencing, emergency assistance, in-cabin music, video streaming, and over-the-air updates. Next-generation vehicles are being introduced with various connected and autonomous features that require high-speed internet access available through 5G. However, as of now, 5G remains a niche, available only in premium cars like the Ford F-150 Lightning, Cadillac LYRIQ, Mercedes-Benz EQS, Audi e-tron GT, BMW iX and GWM Haval HG.”

CC Penetration by regions_2022_Counterpoint

Gupta added, “With consumers’ focus shifting to connectivity in the car, non-connected car shipments are steadily declining. The top five automotive groups accounted for nearly half of the connected cars sold in 2022. Volkswagen Group led the charts in terms of connected car sales volume, closely followed by Toyota Group. Tesla broke into the top 10 for the first time.”CC Sales Share by group_2022_Counterpoint

Commenting on the market outlook, Senior Analyst Soumen Mandal said, “The shift towards digitization in cars is increasing at a rapid pace and is visible in the consistent rise of connected car penetration globally. Currently, 4G dominates the connected car market with almost 95% share. But as the automotive market is transitioning towards electrification, software-defined vehicles and autonomy, the need for seamless and faster in-vehicle connectivity will be fulfilled through 5G. By 2030, more than 90% of connected cars sold will have embedded 5G connectivity. Connected car sales are expected to grow at a CAGR of 13% between 2022 and 2030.”

* Sales here refer to wholesale figures, i.e. deliveries out of factories by respective brands, and consider only passenger cars with embedded connectivity.

The comprehensive and in-depth ‘Global Connected Car Tracker, Q1 2019-Q4 2022’ and ‘Global Connected Car Forecast, 2019-2030F’ are 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.

Counterpoint automotive quarterly

Background

Counterpoint Technology Market Research is a global research firm specializing in products in the TMT (technology, media, and telecom) 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

Abhilash Gupta

 

Soumen Mandal

 

Peter Richardson

 

Counterpoint Research

press@counterpointresearch.com

 

Related posts

 

EV Sales in US up 54.5% YoY in 2022; Tesla Market Share at 50.5%

  • BEVs accounted for 80% of EV sales in the US in 2022.
  • In 2022, Tesla captured over 50% of the US EV market.
  • EV sales are expected to exceed 1.9 million units in 2023.

New Delhi, London, San Diego, Buenos Aires, Hong Kong, Beijing, Seoul – April 4, 2023

Passenger electric vehicle* (EV) sales** in the US grew 54.5% YoY in 2022, according to the latest research from Counterpoint’s Global Passenger Electric Vehicle Model Sales Tracker. Battery EV (BEV) sales grew by almost 70% YoY to account for more than 80% of all EV sales in 2022. Tesla remained the market leader in 2022 with more than 50% market share. Tesla sold more cars than the other 17 automotive groups combined.

Commenting on the market dynamics, Research Analyst Abhik Mukherjee said, “Although overall passenger vehicle sales in the US declined in 2022, EV sales increased to represent 7% of all US passenger vehicle sales. Tesla is dominating the US EV market while other automotive giants like Ford, General Motors, Stellantis, Volkswagen and Hyundai are struggling to provide strong competition. But still, we are seeing new players like Lucid Motors, Karma, Fisker and Vinfast entering the US EV space, underlining the market’s potential. Moreover, with the recent price cuts by Tesla and all versions of Tesla’s Model Y becoming eligible for the EV tax credit subsidy, it is expected that Tesla will take an even higher market share.”

Top 5 US EV sales auto groups

The top 10 best-selling EV models accounted for 69% of total EV sales in the US. All four Tesla models were present in the top-10 bestseller list for 2022. Hyundai’s IONIQ 5 and Kia’s EV6 made a significant impact, entering the list within a year of their US launch.

US top 10 EV Models

Discussing the market outlook, Research Director Jeff Fieldhack said, “High interest rates due to macroeconomic pressures during 2022 negatively affected vehicle sales in the US. In 2023, EV sales are expected to reach over 1.9 million units but only if economic headwinds do not severely impact the market, like in 2022. With automotive OEMs and battery manufacturers joining hands to set up battery manufacturing plants across the US, the battery supply chain is expected to become smoother and component costs will moderate, making the potential US EV market greater than 10 million per year by 2030.”

Background

Counterpoint Technology Market Research is a global research firm specializing in products in the TMT (technology, media, and telecom) 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

Abhik Mukherjee

 

Abhilash Gupta

Soumen Mandal

 

 Jeff Fieldhack

 

 Peter Richardson

 

 Counterpoint Research

press@counterpointresearch.com

Related Posts

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

Related Posts

 

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.

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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.

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Related Reports:

LiDAR Now High on Automotive Industry Radar

LiDAR shipments are expected to cross 100 million units by 2030 driven by the automotive industry. The increase in demand for LiDAR will match the increase in demand for ADAS and automated driving in passenger cars and robotaxis. As the number of LiDAR sensors per car increases, reaching a likely maximum of eight units to enable fully autonomous driving, the LiDAR market is expected to grow at a CAGR of 65.9%  to reach $15 billion by 2030.

Level 3 and above automated driving will require a fusion of LiDAR, radar and camera sensors. While a few companies, like Tesla and Wayve, will look to make autonomous driving successful without LiDAR, most car manufacturers, like Mercedes-Benz, Nissan, BMW, Stellantis, Volkswagen and Volvo, have already announced their intention to include LiDAR in their sensor suites for ADAS/AD in upcoming car models.

The biggest threat to LiDAR comes from alternative technologies such as cameras and machine vision. A small number of companies believe that vision-based systems are sufficient to support autonomous driving. This can hamper the growth of LiDAR as the cost of switching to cheaper vision-based solutions is relatively low.

Automotive LiDAR market

The current LiDAR market is crowded as more than 70-80 companies are operating globally, targeting different industries and regions. From 2020 onwards, a total of nine companies – Velodyne, Luminar, Aeva, Ouster, Innoviz, Aeye, Indie Semiconductor, Quanergy and Cepton – have announced listing of stocks through SPAC mergers.

Valeo’s Scala is the world’s first mass-produced LiDAR for cars. In 2021, Mercedes-Benz and Honda introduced Level 3 models S-Class and Legend respectively. Both are equipped with Scala LiDAR. Since 2017, Valeo has shipped more than 170,000 LiDAR units.

According to a Counterpoint study, the value of the automotive LiDAR market reached around $100 million in 2021 as car companies including Toyota, Honda and Chinese companies like Xpeng launched models equipped with LiDAR. Many car OEMs have signed deals with LiDAR suppliers for their upcoming models. Chinese automakers are at the forefront in entering such partnerships.

Future of automotive LiDAR market

According to Counterpoint’s Global Autonomous Passenger Vehicle Forecast, by 2025, 10% of the new cars sold globally will have Level 3 driving capabilities. Developed markets like the US and Europe will have a higher percentage of Level 3 cars and will first see the entry of Level 4 cars (subject to regulatory approval). This suggests LiDAR has a considerable growth opportunity as Level 3 and above cars will reach the mass market in unison by 2030. According to Counterpoint’s Automotive LiDAR Market Trends and Implications, 2022 study, the LiDAR market is expected to grow from $0.1 billion in 2021 to over $15 billion and over 100 million units shipped in 2030.

Conclusion

After the first use of LiDAR in the automotive segment, it took more than five years for LiDAR to make it to a production vehicle and it still has not been successful at achieving broad market penetration. But it is early days and the scope for LiDAR is considerable. We believe that despite the slow initial diffusion, LiDAR adoption will gather pace.

 

For more insights and analyses on the Automotive LiDAR Market, please refer to Automotive LiDAR Market Trend and Implications, 2022, which captures the current and future LiDAR trends, LiDAR cost, and threats to LiDAR in the automotive industry.

 

Related Posts

Tesla Reports Record Revenue in Q1 2022; Rising Raw Material Cost a Challenge

  • Tesla vehicle deliveries crossed 310,000 units in Q1 2022, a YoY increase of 68%.
  • Revenue reached a record high of $18.8 billion during the quarter.
  • More than 46% of Tesla’s operational expenses in Q1 2022 went to R&D.

The initial months of 2021 were not favorable for automakers. Semiconductor shortages derailed the post-COVID recovery, affecting vehicle sales worldwide. But the shortages have eased a bit one year later and auto sales are reviving. Automakers expect to recover the losses made during the last two years, soon. However, traditional automakers are unable to cope with the rising demand for pure EVs, whereas Tesla’s ability to address this demand has rewarded it not only with higher vehicle sales in Q1 2022 but also a record revenue of $18.8 billion. Tesla has also started deliveries to car rental service provider Hertz against its huge 100,000-vehicle order, which is also a reason for high vehicle production and delivery during the quarter.

Tesla’s Q1 2022 revenue would have been more without the fresh COVID wave that has hit Shanghai and surrounding areas, affecting the company’s production there. From the second week of March, rising cases of a new COVID variant have forced automakers operating around Shanghai to suspend production.

The urge to achieve L4 autonomy by the end of 2023 and to roll out robotaxis by early 2025 can be a major reason for Tesla’s big R&D spend. Besides, Tesla could also be conducting research on developing new battery chemistry. The soaring prices of some key battery components like nickel and lithium have put the auto OEMs in a spot. Most EV makers around the globe have been forced to raise prices by a few thousand dollars to cope with the rising prices of battery-related raw materials.

After Tesla’s Shanghai plant became operational, the company’s sales boomed globally, especially in China. In 2021, China remained its top market followed by the US and Europe. Apart from vehicle sales, Tesla has a strong network of charging stations and insurance services. Till Q1 2022, Tesla had 3,724 superchargers and 33,657 supercharger connectors worldwide.

Tesla Revenue by Segment Q1 2022_Counterpoint Research

Q1 2022 Financial Results

  • During Q1 2022, Tesla delivered more than 300,000 units of vehicles, an increase of 68% YoY. Model 3/Y accounted for more than 95% of deliveries.
  • Total revenue stood at $18.7 billion, an 81% YoY increase. Nearly 90% of the total revenue came from vehicle sales.
  • Tesla’s other services like energy storage, charging and insurance contributed to the remaining 10% of the revenue. Revenue from energy-related services and insurance services saw YoY growth of 24.7% and 43.23% respectively.
  • Keeping parity with vehicle sales and revenue growth, Tesla’s gross profit during Q1 2022 reached $5.4 billion. Compared to the same period last year, the gross profit grew by a whopping 146%. Gross profit from vehicle sales saw a jump of 132% YoY.
  • R&D cost has also been on the rise. During Q1 2022, it stood at nearly $1 billion, a 30% increase YoY. More than 46% of the operating expenses were incurred in the R&D segment, implying Tesla is working seriously on some new technology under the hood.
  • Vehicle inventory for Tesla is quite different from other OEMs. During Q1 2022, Tesla delivered more vehicles than it produced, putting the quarterly inventory at -1.5%. This implies that Tesla has been clearing older stock that remained unsold during 2020 and 2021. Tesla keeps a delicate balance between production and deliveries, which helps it to maintain an image that its vehicles are in high demand.

Tesla Production and Deliveries, Q1 2021 - Q1 2022_Counterpoint Research

Market Outlook

Tesla’s future seems strong as it never stops innovating and keeps providing better and newer features to its customers. But within a couple of years, Tesla will face strong competition from traditional OEMs like Volkswagen, Toyota and Stellantis, which released their ambitious vehicle electrification plans last year. Though it will be difficult for them to overtake Tesla sales any time soon, Tesla will witness a reduction in its share across major markets. The reason behind this is the price band in which Tesla operates. It mostly operates in the high-to-premium price band, whereas the traditional OEMs are planning to launch vehicles in the budget segment. The rising cost of a few key raw materials and inflationary impact on production have pushed Tesla to increase its vehicle prices worldwide a couple of times. This might play against the sentiment of new customers, which will, in turn, affect the next quarter’s financials.

Related Posts

Qualcomm Bolsters Automotive Presence with One More Deal

Qualcomm has inked a deal with Stellantis, the world’s fourth-largest automaker.  Stellantis controls a large number of iconic brands including Fiat, Jeep, Peugeot, Chrysler and Maserati. Stellantis will power its new vehicles with Qualcomm’s Snapdragon Digital Chassis, which Qualcomm introduced during the IAA Mobility show in 2021. Snapdragon Digital Chassis, with its modular approach, enables automakers to build connected and smart vehicles, and meet the ever-growing demand for safer and more intelligent cars.

Digital Chassis is a set of open and scalable cloud-connected platforms to improve safety and the in-vehicle experience. It includes:

Snapdragon Car-to-Cloud: a platform that allows automakers to generate new revenue streams by introducing new services, features, and performance upgrades to the vehicle.

Snapdragon Auto Connectivity: provides a host of advanced connectivity solutions, where Qualcomm is the leader globally like 5G, C-V2X, LTE, Wi-Fi, Bluetooth, GPS/GNSS, etc for connecting the car to the cloud, internet and the infrastructure.

Snapdragon Ride: offers advanced driver assistance and automated driving solutions which is further enhanced with the recent acquisition of Arriver.

Snapdragon Cockpit: allows automakers to provide a more immersive in-car experience with enhanced graphics, visuals and intuitive human-machine interactions

Source: Qualcomm

The multi-year partnership

Stellantis will use Snapdragon Digital Chassis across all its 14 brands to provide smarter vehicles and a more immersive in-vehicle experience. The technology will be introduced in vehicles from the year 2024 and starts with the luxury brand Maserati.

In December 2021, Stellantis announced its plans to develop software-based platforms powered by artificial intelligence (AI) and will deploy them in vehicles from 2024. There will be three platforms: STLA Brain, STLA SmartCockpit and STLA AutoDrive.

The STLA Brain is the new electrical/electronic (E/E) and software architecture for new vehicles. It is fully cloud-integrated to provide Over-the-Air (OTA) capabilities. STLA SmartCockpit is built on top of the STLA Brain and offers AI-based applications like navigation, voice assistance, and in-vehicle payments. The STLA AutoDrive platform provides level 3 autonomous driving technology, which Stellantis is co-developing with BMW.

Source: Stellantis

The STLA SmartCockpit is designed with Amazon and Foxconn to deliver a connected and personalized in-vehicle experience and Qualcomm’s Digital Chassis will be integral to SmartCockpit.  The Snapdragon Cockpit Platform will power an advanced touch and voice-controlled multi-display cockpit, with rich graphics, high-quality audio, and clear voice communications. The Snapdragon Cockpit Platform will bring additional levels of digital intelligence to enhance the STLA Brain, improving convenience and safety features, including a personal assistant, OTA updates, vehicle performance upgrades, diagnostics and repair, and more.

Source: Qualcomm

Key Takeaways

  • Qualcomm is cementing its position as a leading technology provider in the automotive industry with this deal. Its automotive segment revenue is growing strongly; its automotive design-win pipeline increased to $13 billion in 2021 from $3 billion in 2017.
  • Stellantis will be able to bring one uniform cockpit platform and 5G telematics solutions across all 14 of its brands.
  • Working directly with the chipmaker, Stellantis can closely monitor the supply chain to avoid, or limit, supply-chain disruptions such as the ones the auto industry has experienced recently.
  • Since the launch of Snapdragon Digital Chassis, Qualcomm has signed partnerships with major global players including Renault, GM, Ferrari, Honda, and Volvo.
  • Major wins so far have come from the digital cockpit and connectivity solutions, while a few (GM and BMW) are for the Snapdragon ride (ADAS/AD) platform. With the acquisition of Arriver, Qualcomm is likely to sign more deals with Tier-1s and automakers in the future to expand its automotive pipeline.
Source: Counterpoint

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