Global EV Sales Are On The Rise, Including Major Purchases as Industry Evolves

The electric vehicle (EV) space is constantly changing, powered by developments, innovations, and policy shifts worldwide. This news update brought to you by Ideal Power offers a round-up of just some of the most eye-catching headlines around electric vehicles and the market opportunities associated with them.

This month, we’re looking at massive growth in the EV space, both internationally and here in the U.S. In addition, one major deal is set to expand an EV subscription service that avails its members to a fleet of models from a variety of manufacturers. 

China EV sales expected to eclipse 6 million in 2022

China is the largest markets for EVs and new estimates suggest that it is growing faster than expected. According to projections from the China Passenger Car Association, EV sales are expected to more than double this year and surpass 6 million, a revised projection from the previously anticipated 5.5 million sales. 

Not only is the Chinese EV market currently the largest in the world, it is also the fastest growing, far outweighing both the U.S. and European markets. This year, the U.S. market is projected to reach 1.2 million new EV sales, while the EU is expected to reach 3.2 million new EVs sold. In 2021, the estimated value of the Chinese EV market was $124.2 billion, and it is expected to grow to $799 billion by 2027. 

China’s groundbreaking progress in new EV sales may not yet be finished, either. The China Passenger Car Association added that it may revisit this projection to further increase it in Q4, stating that the estimate of 6 million EV sales was still “relatively cautious.”

California EV sales pick up pace in H1 2022

California continues to lead the U.S. when it comes to EV sales and adoption, and the pace is quickening. The California New Car Dealers Association found that sales of EVs accelerated through the first half of 2022, eclipsing the pace of hybrid sales for the first time since EVs arrived in the state. New registrations of EVs in California neared 130,000 through the first six months of the year, accounting for more than 15% of all new registrations. Hybrids, by comparison, accounted for roughly 100,000 new registrations or 11.7%.

Although EVs remain in the minority of vehicles on the road, the acceleration in new sales bolsters the industry in California. Tesla led the way in all new vehicle sales -- including internal combustion engine (ICE) vehicles -- claiming the top two spots in the state with its Model Y and Model 3. Tesla sold more than 80,000 EVs in California through H1 2022, representing roughly 61% of total EV sales. 

EV subscription service Autonomy places $1.2B order

Autonomy, a subscription service that allows members to borrow EVs, placed a major order totaling $1.2 billion from more than a dozen auto manufacturers. The order of more than 23,000 vehicles includes purchases from Tesla, GM, Hyundai, Ford, Volkswagen at the top of the list. Other notable manufacturers include EV startups like Rivian, as well as legacy manufacturers like Stellantis, Mercedes-Benz and Kia. EVs purchased under the deal would be delivered in phases starting in Q3 2022 and lasting through Q4 2023.

The purchase comes after Autonomy launched with a Tesla-only fleet, previously accepting about 200 deliveries per week from the EV giant. Under the new purchase agreement, Tesla would continue to be the top contributor of EVs to the subscription service, delivering 8,300 units through 2023, though the deal also significantly diversifies its fleet. Other major contributors would be GM with 3,400 units, Volkswagen with 2,200, Ford with 1,800, Hyundai with 1,640, Kia with 1,500, and Rivian with 1,000. 

“Tesla was certainly the right launch partner for Autonomy given their dominance in the electric vehicle market today,” Scott Painter, CEO of Autonomy, told Electreck in an interview. “With every automaker going all-in on electric and so many exciting new products coming to market in the next 6 to 18 months, we have placed our fleet order and are excited to expand our subscription lineup and make it easier for consumers to make the transition to electric.”

Once deliveries on the order are completed, Autonomy will maintain 46 models of EVs in its fleet, all of which would be available to subscribers by 2024.

Growing sales in major markets underscore EV space’s strength

China is leading the way internationally in terms of EV sales and California is the darling market here at home --- each is emblematic of the strong growth potential for the broader industry. The establishment of subscription services like Autonomy, and the major boost their big deal gives to EV sales in an already record year, speaks volumes to the future of this industry, even in a down economy. As Congress weighs EV tax credits in the Inflation Reduction Act, additional opportunities could be on the way to bolster spending on EVs now and in the future.

For investors, the market opportunity in electric vehicles remains immense. With more sales than ever slated for 2022 and a growing market expected to reach $1 trillion in value by 2026 (up from $260 billion in 2020), EVs are here to stay, especially as technological innovation strengthens the industry’s value propositions. While consumer spending increases, manufacturers target lower price points, and the federal government gets serious about expanding the electric vehicle charging grid, we could finally be witnessing electric vehicles preparing to go mainstream.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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