Strategy& – Electric Vehicle Sales Review, 4Q 2023

Strategy& and PwC Autofacts have collaborated to produce a report on the global electric vehicle (BEV) market. The report reveals several significant milestones reached in Q4 2023. BEV sales in China exceeded two million, while annual sales in the United States surpassed one million for the first time. Moreover, the total BEV sales in 2023 across all 20 analyzed markets amounted to 9.97 million, with the inclusion of markets not covered by the study expected to bring the total to over 10 million. The report highlights the strong growth of the BEV market, with an annual growth rate of 28% across the analyzed markets, compared to a 5% increase in sales of internal combustion engine (ICE) vehicles. Two-thirds of the BEV sales in 2023 were in China, although sales growth in the country slowed due to an economic downturn. The United States saw robust BEV growth in 2023, with a growth rate of 54%. However, the BEV market share in the US still lags behind China, at 7% compared to 22%. France also performed well, with a 47% increase in annual sales, while Germany's sales growth fell to 11% due to decreasing government subsidies. Looking ahead to 2024, the report identifies potential challenges that could slow the growth of the BEV market, including government protectionism, reduced incentives, geopolitical conflicts affecting the supply chain, and uncertainty about the commitment of future US administrations to road electrification. Despite these challenges, the report suggests that the global BEV market is likely to continue performing strongly.