Global electric vehicle sales, Battery Electric Vehicle (BEV) and Plug-in Hybrid Electric Vehicle (PHEV), grew by 31% year-on-year (y-o-y) in 2023 to 13.6 million units following a monthly record of 1.5 million units sold in December. Of these 9.5m were BEV, growth of 27% y-o-y. Rho Motion’s Managing Director, Adam Panayi, said:

Rho Motion’s Managing Director, Adam Panayi, said:

“Electric vehicle sales continue to show strong growth in 2023 despite significant headwinds, from a tougher economic environment and cooler legislative support.”

Of the major markets, the European BEV market grew by 27%, the Chinese BEV market by 15% and the US & Canada BEV market by more than 50%. In the Rest of the World BEV sales almost doubled in 2023 with strong growth in Southeast Asia, Latin America, and India. 

In Europe, BEV sales steadily grew throughout the year resulting in 27% growth in 2023. However, PHEV sales fell by 5% compared to 2022. The two largest European markets made significant changes to their incentive schemes. Germany ended its subsidy following a budget crisis, and France’s Ecological Bonus was narrowed to exclude Chinese-produced EVs, which represented more than a fifth of BEV sales in 2023. Last year only 8% of EV sales were in the smaller (A & B) vehicle segment, led by the Fiat 500. We expect this share to rise after the Volvo EX30 was introduced in Europe towards the end of last year, and the Citroen eC3 will be released this year.

In North America, Tesla continues to lead the market with the Model Y and Model 3 the top two best-selling vehicles, collectively representing 50% of the BEV market. Since the introduction of the Inflation Reduction Act, there has been a rise in investment across the supply chain heading to North America. Following the requirements to receive the tax credit heading into 2024, only Chevrolet, Ford, and some Tesla models can currently receive up to the maximum amount of USD$7,500.

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