The global electric vehicle market suffered a dramatic collapse in January 2023 sales, with Rystad Energy research showing that only 672,000 units were sold.
EV sales have been on a relatively consistent upward trajectory in recent years – aside from periods impacted by Covid-19 pandemic-related supply chain issues – and a significant collapse in sales is worrying news for the industry.
EV subsidies in many European countries and mainland China were sliced at the start of the year, and a return of any significance is highly unlikely in the immediate future. One ray of hope for the global outlook is the US market, which is just beginning its electrification journey and rolling out tax credits thanks to the Inflation Reduction Act.
Although there was a marginal year-on-year growth in EV sales in Europe last month, market performance has been grim, with many countries showing a steep drop in EV sales from December 2022. With EV subsidies coming to an end, many consumers brought forward their purchases from the first quarter of 2023 to December 2022, leading to a massive spike in purchases before the end of the year.