The global electric vehicle (EV) market demonstrated a dynamic performance in the first half of 2024, with certain manufacturers and regions experiencing significant growth while others faced stagnation. This period highlighted evolving consumer preferences, intensified competition, and the crucial role of regional market dynamics in determining OEM success. As a repair expert at mercedesbenzxentrysoftwaresubscription.store, understanding these market trends is vital to anticipate the future of vehicle servicing and technology. This analysis, drawing insights from EV Volumes, delves into the standout EV manufacturers of H1 2024 and the overarching trends defining the best EVs in 2024.
One of the most prominent trends observed in the first half of 2024 was the remarkable ascent of Chinese EV manufacturers. While Western OEMs navigated a more restrained growth environment, brands like Geely, Changan, Li Auto, Seres (Aito), and Chery showcased impressive sales increases. This surge reflects the robust growth of the Chinese domestic EV market and the increasing competitiveness of Chinese EVs on a global scale.
Despite a slowdown in its year-on-year volume growth to 26% (compared to a 62% surge the previous year), BYD maintained its position as the global EV market leader. BYD’s extensive product range, featuring 37 nameplates encompassing battery-electric vehicles (BEVs), plug-in hybrids (PHEVs), and extended-range electric vehicles (EREVs), contributed to its dominance. However, BYD’s absence in certain vehicle segments like mini-EVs and its relatively late entry into the EREV category indicate potential areas for future expansion and competition. Significantly, while being China’s largest OEM in production and sales focusing on BEV and PHEV models, BYD’s exports are heavily concentrated outside Western and Central Europe, with South America, ASEAN, the Middle East, and Russia being its primary international markets.
Tesla’s Tenacity in the Face of Growing Competition
Tesla, a pioneer in the EV sector, continued to lead in global BEV sales in the first half of 2024, albeit with a narrow margin. A 7% year-on-year decline in deliveries marked a first for the company during this period, with volume decreases observed across key markets including China, Western Europe, North America, and Australia/New Zealand.
This downturn for Tesla can be attributed to intensified pricing competition, particularly in China, and rollout delays affecting the refreshed Model 3. Furthermore, initial versions of the Model 3 sedan were ineligible for US Inflation Reduction Act (IRA) grants due to battery sourcing. Tesla’s fluctuating monthly volumes suggest strategic adjustments in logistics and supply chains to navigate grants and tariffs, reflecting the complexities of global EV distribution.
Volkswagen (VW) Group also experienced a deceleration in its EV market momentum in the first half of 2024. A 6% year-on-year sales growth lagged behind the overall global EV market expansion of 22%. Growth within the VW Group was uneven, with Audi and Cupra brands driving increases while other brands saw declines. Interestingly, in China, the VW brand engaged in price wars, a strategy not adopted by Audi and Porsche, and Cupra is not present in the Chinese market, indicating regionally tailored strategies within the group.
Geely’s Impressive EV Market Share Gains
Geely emerged as a significant winner in H1 2024, tripling its global EV sector share. Sales from its Chinese brands surged by 68% year-on-year. Volvo, Geely’s European affiliate, also outperformed the relatively stagnant European EV market, driven by the successful launch of the new Volvo EX30 BEV, which sold approximately 45,000 units, primarily in Europe.
Geely’s export strategy is noteworthy, with around 118,000 units exported from China, of which 98,000 were sold in Europe. A substantial portion of these European sales (approximately 93,000 units) comprised China-made models from Volvo, Polestar, Smart, and Lotus. The imposition of import tariffs on Chinese EV exports to Europe poses a potential challenge to this growth trajectory, unless tariff exemptions are secured or production is relocated to Europe.
General Motors (GM) recorded a 32% sales increase in H1 2024, accelerating from the previous year’s growth rate. The traction gained by new models built on the Ultium battery platform in the US contributed significantly to this growth. In China, the Buick Velite 6 BEV achieved record sales for the brand with roughly 33,000 units sold. However, the phasing out of the Chevy Bolt and Bolt EUV impacted overall growth negatively. Much of GM’s recent growth is attributable to its Chinese affiliate, Wuling, whose expanding portfolio, including the Wuling Bingo and Starlight PHEV, compensated for declining sales of the Hongguang Mini-EV.
Market Stagnation Impacts Some, Others Find Growth Niches
Stellantis experienced a 9% decline in EV deliveries, largely due to its significant exposure to the sluggish European EV market. Subsidy reductions in Europe particularly affected sales of lower-priced EVs, a crucial segment for Stellantis. European deliveries fell by 20%, while sales of Jeep, Dodge, and Chrysler models in the US and Canada saw a 35% increase, highlighting regional market variances.
BMW Group demonstrated a 13% increase in EV sales in the first half of the year. While Mini experienced a substantial 46% year-on-year loss, the BMW brand itself achieved a strong 20% gain, particularly in Europe, where it ranked as the second-largest EV seller.
Changan’s strategic launch of three new brands – Avatr, Deepal, and Qiyuan (Nevo) – and a portfolio of 12 models, including EREV powertrains, paid off handsomely. Sales surged by 87%, exceeding the 60% growth rate from the same period last year, with plans for European market entry signaling further ambition.
Hyundai Motor Company’s sales remained flat overall in the first half, although Kia managed slight gains over Hyundai. The Kia EV9, launched in summer 2023, recorded approximately 19,000 sales. However, the termination of electric LCV grants in South Korea led to a significant sales drop for Kia Bongo and Hyundai Porter. Declining deliveries in Europe and South Korea were offset by growth in the US, while China sales of the Kia EV5 remained modest.
Li Auto, known for its range-extender SUVs, continued its growth trajectory in H1 2024. The launch of the L6 model and increasing sales in Russia contributed to a sales figure of 14,400 units.
GAC Aion experienced a loss of momentum due to an aging model lineup. Mercedes-Benz’s growth was constrained by volume losses in China and the discontinuation of proprietary Smart models, illustrating the challenges of model lifecycle management and market-specific pressures.
Seres witnessed a remarkable 515% sales growth compared to a weak H1 2023. This surge was primarily driven by Aito’s new large SUVs, the M7 and M9, featuring EREV technology, positioning Aito as a potential competitor to Li Auto in the EREV SUV segment.
Toyota, despite being the world’s largest vehicle OEM, saw EVs constitute only about 3% of its total sales, equating to roughly 161,000 EV units in H1. However, the company did achieve healthy year-on-year growth in EV sales, indicating a gradual shift towards electrification.
SAIC’s growth, while positive, fell short of expectations, with 58% of its EV volume exported, approximately 89,000 units. European sales accounted for 56,000 of these exports, slightly below H1 2023 figures. Chery experienced sales increases with newer, more premium models, but its ambitious EV export targets have yet to fully materialize.
Incentives and Model Transitions Impact Sales
The Renault-Nissan-Mitsubishi Alliance faced challenges in H1, with weak EV sales in Japan. The phase-out of the Renault Zoe, preceding the launch of the Renault 5 and Renault 4 EVs, contributed to this downturn. The removal of purchase incentives for the China-built Dacia Spring in France resulted in an 80% sales drop, or about 12,000 units, in that market, underscoring the significant impact of incentives on EV adoption.
Dongfeng, a major state-owned OEM, recorded 127,400 EV sales across its nine brands, demonstrating healthy growth. Despite being a leading manufacturer of ICE vehicles, its EV division appears to be gaining traction. Ford’s EV sales constituted only 4% of its total global sales in H1. Meanwhile, Nio, Leapmotor, and XPeng all showed healthy growth, though their sales volumes remain below the critical 400,000-a-year viability threshold.
Leading EV Models in the First Half of 2024
Tesla and BYD models dominated global EV sales charts in H1 2024. The Tesla Model Y emerged as the world’s best-selling vehicle across all categories, including ICE vehicles, despite experiencing a sales decrease in Europe.
Increased competition in the BEV market from models like the Volvo EX30, BMW iX1 and iX2, and Hyundai Kona, despite being in smaller segments, presented attractive alternatives to the Model Y. The anticipated refreshed Model Y (codename Juniper) and the Model 3 refresh are expected to revitalize Tesla’s sales momentum. Production disruptions at Tesla’s Berlin factory due to sabotage and Red Sea shipping issues also impacted H1 performance. The increasing accessibility of Tesla’s Supercharger network to other brands is gradually diminishing a unique selling point for Tesla vehicles.
The BYD Song PHEV was not only the second best-selling vehicle in China but also the second best-selling EV globally. Its recent refresh contributed to increased sales in H1 2024. Tesla Model 3 deliveries declined by 12% in H1, affected by supply constraints in the US and IRA grant ineligibility for base variants. However, Model 3 sales grew by 41% in Europe while decreasing in China and the US, indicating strategic prioritization of European deliveries ahead of tariff changes.
The BYD Seagull BEV (Dolphin Mini in export markets), BYD’s most affordable model, has cannibalized some sales from the larger BYD Dolphin. The BYD Yuan Plus BEV (Atto 3), despite a 20% sales decline, continued to lead the compact SUV segment in China, though facing increased competition and segment stagnation as buyers shift to larger, more innovative SUVs and EREVs.
BYD’s Qin Plus DM-I and Destroyer 05 PHEVs, part of its “warship” lineup, were top sellers in China’s midsize-sedan segment. The Aito Wenjie M7, a large SUV developed with Huawei, mirrors Li Auto’s focus on large EREV SUVs. The BYD Dolphin ranked eighth globally, experiencing sales declines due to the Seagull, while the Hongguang Mini EV continued its sales decline amid new competition and consumer upgrades to larger vehicles.
Looking Ahead: EV Market Dynamics in 2024 and Beyond
As we move into the second half of 2024, the EV market is poised for continued evolution. The trends highlighted in H1 2024 – the rise of Chinese OEMs, intensifying competition, regional market variations, and the critical influence of government incentives – are likely to persist. The best EVs of 2024 will likely be defined by a combination of technological innovation, affordability, and strategic market positioning. For professionals in automotive repair and related fields, staying abreast of these market dynamics and model-specific trends is crucial for adapting to the rapidly changing landscape of the automotive industry. To stay updated with the latest data-driven insights, continue following EV Volumes on Autovista24.
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