TrendForce’s latest report reveals that global sales of New Energy Vehicles (NEVs) have surged in the second quarter of 2024, reaching 3.769 million units. This represents an impressive 30 percent growth compared to the previous quarter and a 24.2 percent year-over-year (YoY) increase.
New Energy Vehicles (NEVs) include Battery Electric Vehicles (BEVs), Plug-in Hybrid Electric Vehicles (PHEVs), and Fuel Cell Vehicles (FCVs).
BEV Market: Tesla Leads Despite Decline, BYD Shows Strong Growth
The BEV market saw sales rise to 2.328 million units in Q2 2024, marking an 8 percent YoY growth. Tesla maintained its lead in market share; however, the company experienced a 4.7 percent decline in sales compared to the same period last year. In response, Tesla introduced price cuts and favorable interest rates in key markets like China and the United States to stimulate demand.
BYD continued to solidify its position in the market, with BEV sales growing by approximately 20 percent YoY. Notably, BYD shipped over 100,000 NEVs, including BEVs, to overseas markets during the quarter. Volkswagen, SAIC-GM-Wuling, and BMW followed closely behind in the top five BEV sellers, with minor differences in market share.
NIO emerged as a standout performer, with a remarkable 144 percent YoY increase in sales, reclaiming the 7th spot. Zeekr also gained traction, particularly with its Zeekr 001 model, which saw a sales boost due to a facelift and favorable policies aimed at promoting NEVs in rural China.
PHEV Market: Chinese Brands Dominate
The PHEV market exhibited robust growth, with global sales reaching 1.439 million units in Q2 2024—a YoY increase of 64.2 percent. Chinese brands dominated the top four positions, with BYD leading the pack, capturing a 36.1 percent market share. Li Auto, AITO, and Changan followed, while Volvo Cars and Mercedes-Benz secured the fifth and sixth spots, respectively. BMW’s PHEV sales remained flat, placing it in eighth place.
Despite a drop in sales and rankings, Jeep continued to lead the PHEV market in the United States, where only seven models currently qualify for federal subsidies, two of which are produced by Jeep.
Impact of Chinese NEV Policies
TrendForce highlights the influence of China’s NEV replacement subsidies on the brand rankings in the first half of 2024. The Chinese government’s recently introduced subsidy program is expected to further bolster sales and market share for domestic brands. Under this program, subsidies for scrapping vehicles and purchasing either fuel or NEVs have been doubled, with NEV buyers eligible for up to CNY 20,000. This policy is set to remain in effect until January 10th, 2025.