Electric vehicle sales globally remain strong, as indicated by China's record-breaking monthly sales in October, despite the discontinuation of subsidies, according to Rho Motion, a market research firm.
Even as China terminated an 11-year subsidy program for EV purchases in 2022, certain local authorities have continued to provide support such as aid, tax rebates, and consumer subsidies to incentivize investments.
In September, EV sales in China surged by 29% year-to-date, while the global EV market showed 34% growth during the same period.
However, analysts note that China is approaching the final two months of the year, traditionally marked by heightened vehicle sales activity.
"What's notable about October's figures is that EV demand in China continues to reach record highs even though the subsidies were cut ... 2023 is set to be another banner year for China in terms of EV sales," the market research firm said.
In European markets, EV sales experienced a 26% boost in growth, even as a reduction in subsidies has impacted demand. For instance, in Germany, the discontinuation of business subsidies in September has affected the market.
"This (subsidies) is an important factor in the German market as nearly two-thirds of passenger car registrations are commercial," the market research firm said.
North America witnessed a 78% jump so far in 2023.
"The North American market continues to have a strong 2023, with Tesla (NASDAQ:TSLA) still taking the lion's share of demand as legacy automakers temper ambitions of scaling production," analysts said.
However, despite implementing price cuts, Tesla's (TSLA) market share dropped to its lowest level on record, hovering around 50% during the third quarter.