思略特+2023年3季度電動汽車銷售回顧-英

Electric

Vehicle

SalesReview

Q32023Foresighttodrive

theindustryOctober

2023Thispublication

has

been

developed

incollaboration

between

Strategy&,PwC’s

global

strategy

consulting

business,

alongside

PwC

Autofacts’Automotive

industry

and

function

experts.

Together,

we

transformorganizations

bydeveloping

actionable

strategies

that

deliverresults.AtPwC,

our

purpose

isto

build

trust

in

society

and

solveimportantproblems.

We’re

anetworkof

firms

in152

countries

with

almost

328,000people

who

are

committed

to

delivering

quality

inassurance,

advisoryand

tax

services.

Findout

more

and

tell

uswhatmatters

to

you

byvisitingus

at

.PwC

refers

to

the

PwC

networkand/or

oneor

more

of

its

member

firms,each

ofwhichis

aseparate

legal

entity.Please

see

/structure

for

further

details.Strategy&2ExecutivesummaryChinaslowdown

hinders

globalBEVgrowthBEV

sales

in

all

twenty

analyzed

markets

increased

by26%

in

thethirdquarter

of

2023in

comparison

withthesameperiod

last

year.

But

if

it

were

notfor

waning

growth

in

theChinesemarket,

that

figure

would

beconsiderablyhigher.Thatis

becauseChina

heavilydominates

the

globalBEVmarket.

Indeed,ChineseBEVsales

accounted

for

two

thirds

of

sales

in

all

analyzed

markets

in

the

third

quarter

of2023.

Growth

in

BEV

sales

in

China

was

16%

in

Q3

2023

vs.

Q3

2022.

Growth

in

BEVsalesfor

the

same

periodfor

all

other

19analyzed

markets

outsideChina

was

49%.BEV

growth

slows

markedlyin

China,

but

maintainspace

in

other

analyzedmarketsBEV

sales

growth

in

China

has

been

slowing

for

several

months,

in

large

part

due

toa

weakening

economic

outlook,

and

is

now

significantly

lower

than

just

two

years

ago.In

2021,

BEV

sales

growth

there

reached

172%.

However,

it

should

also

be

notedthat

BEV

sales

growth

in

China

between

Q3

2022

and

Q3

2023

was

still

comfortablyhigher

than

the

overall

growth

of

total

powertrain

sales

in

the

country

in

that

period(16%

vs.6%).Indeed,

BEV

sales

growth

was

higher

than

total

powertrain

sales

growth

in

the

periodin

question

in

all

analyzed

markets,

with

only

one

exception

–

South

Korea.

Some

ofthe

recorded

gaps

between

BEV

sales

growth

and

overall

powertrain

sales

growthwere

very

substantial

–

for

example,

62%

vs.

17%

in

the

USA,

and

59%

vs.

18%

inGermany.

Market

trends

suggest

that

this

strong

BEV

sales

performance

will

continue,with

projected

growth

of

35%

in

all

analyzed

markets

in

2024.49%

vs.

16%BEV

QoY

salesgrowth

inallother19

analyzed

markets

outsideChina

vs.BEVQoYsalesgrowth

in

ChinaPHEV

sales,

on

the

other

hand,

reflect

a

more

nuanced

picture.

Although

only

Italy,Spain,

Japan

and

Brazil

sold

more

PHEVs

than

BEVs

in

the

third

quarter,

the

QoYgrowth

of

PHEV

sales

was

higher

than

for

BEV

sales

in

several

countries,

includingChina,

USA,

France,

UK

and

Austria.

In

Germany,

however,

PHEV

salesfell

by42%

inQ3

2023vs.Q3

2022.Strategy&31.

Newsand

highlightsChinese

OEMpresencegrows

asEuropean

BEVmarket

movesmore

mainstreamIAA

showconfirms

emergingmarket

trendsMeanwhile,

BMW

revealed

the

Neue

Klasse

concept.

Thecompany

plans

to

roll

out

six

models

within

24

monthsbased

on

this

new

BEV-dedicated

platform

that

is

set

tolaunch

mid-decade.4The

Inflation

Reduction

Act

(IRA)

in

the

United

States,which

stipulates

that

BEVs

made

with

US-recycled

batterymaterials

should

be

eligible

for

the

IRA’s

purchaseincentives,

has

further

led

to

a

boom

in

BEV

batteryrecycling

in

the

country,

helping

the

region

to

challengeChina’s

dominance

inthat

field.8The

IAA

Mobility

2023,

the

largest

auto

show

in

Europe,was

held

this

September

in

Munich.

The

event,

whichattracted

500,000

visitors,

highlighted

two

major

trends

inthe

EV

market:

Chinese

OEMs

are

gaining

moreprominence,

and

the

EV

market

is

moving

from

a

focusonhigh-end

luxurytowardsmainstream.Microcarmanufacturersjoinforces

to

push

caseA

group

of

European

manufacturers

of

L7e

(heavyquadricycle)

microcars

have

formed

an

alliance

in

their

bidto

create

an

alternative

to

traditional

passenger

cars.

Thefounding

members

of

the

“Microcars

Coalition”

includeMicrolino,

City

Transformer

and

Circle

Mobility.

Thecoalition

is

seeking

to

raise

awareness

of

microcarsand

their

advantages

in

cities,

and

lobby

for

tax

andsubsidy

policies

that

encourage

people

to

switch

tomicrocars.

The

coalition

also

aims

to

work

with

urbanauthorities

to

create

special

exemptions

and

benefits

formicrocars

incity

traffic

and

carparks.5Batteries

benefitfrom

technological

innovationOut

of

22major

OEMs

displaying

their

models,

seven

werefrom

China.

The

event

therefore

reflects

an

intensifyingcompetition

between

China

and

Europe,

as

EuropeanOEMs

strive

to

introduce

lower-cost

BEVs

and

follow

thelead

set

by

the

Chinese

OEMs,

which

have

specialized

inmore

affordable

models.1Technological

progress

in

battery

development

feeds

offthe

expansion

of

the

BEV

market,

as

OEMs

compete

toupgrade

their

products

and

attract

the

growing

number

ofBEV

consumers.

Improved

battery

technology

inevitablyleads

in

turn

to

further

BEV

adoption

and

marketexpansion.

Several

announcements

on

this

front

have

hittheheadlines

inrecent

months.New

Chinese

models

drawing

attention

included

two

fromthe

manufacturing

giant

BYD:

the

Seal,

a

mid-size

sedan,and

the

Seal

U,

a

mid-size

SUV.

And

another

from

thestart-upLeapmotor:

the

C10,

amid-size

SUV.2Chinese

automotive

battery

manufacturer,

CATL,

hasannounced

its

Shenxing

battery

that

delivers

a

range

of400

kilometers

after

just

10

minutes

of

charging.

Thelithium

iron

phosphate

(LFP)

battery

contains

modifiedelectrode

materials

and

an

electrolyte

mix

that

acceleratecharging

while

maintaining

safety

and

ensuring

resistanceagainst

thecold.9Battery

recycling

market

gathers

paceEuropean

OEMs

also

displayed

their

newestdevelopments.

Mercedes-Benz

revealed

the

CLAconcept,

an

entry-level

BEV

sedan

with

a

significant

750kilometer

range,

whichwillgoonsale

at

theendof

2024.3An

August

2023

joint

study

by

PwC

Strategy&

andRWTH

Aachen

University

has

suggested

that

theEuropean

battery

recycling

market

will

be

viable

andsustainable

by

2035.

Various

factors

are

accelerating

thisdevelopment

–

the

rapid

electrification

of

the

car

market,lower

costs

resulting

from

improved

technology,

aregulatory

push

from

governments,

and

massiveinvestments

from

OEMs

and

others.6

One

example

of

thisinvestment

is

The

Future

is

Neutral,

a

company

created

bythe

Renault

Group,

which

aims

to

lead

the

industry

inclosed-loop

batteryrecycling.7Toyota

has

unveiled

a

breakthrough

in

its

solid-statebattery

technology,

which

promises

to

halve

the

size,

costand

weight

of

batteries

for

its

electric

vehicles.

Thecompany

said

it

had

developed

ways

to

manufacture

asolid-state

battery

with

a

range

of

1,200

kilometers

thatcould

charge

in

a

maximum

of

10

minutes.

Toyota

expectsto

make

solid-state

batteries

available

for

commercial

useby2027.10Sources:Strategy&1Techcrunch,

6September

2023;

2Automotive

News

Europe,

5September

2023;

3Carwow,

29September

2023;

4Reuters,

4September

2023;

5Elektrive,

15June

2023;

6Strategy&,

August

2023;7Automobilwoche,

9August

2023;

8Reuters,

21

July

2023;

9Nikkei

Asia,

17

August

2023;

10TheGuardian,

4July

202341.

Newsand

highlightsOEMsdeclare

BEVstobe

onthecuspofprofitabilityBEVsapproachbreakeven

pointOil

demandreachinga

peak

in

ChinaandbeyondTradewar

concernsas

stakes

are

raisedIn

recent

months,

several

major

legacy

OEMs

havepublicized

their

views

on

when

BEVs

would

becomeprofitable.

Their

opinions

have

differed,

but

they

all

agreedthat

BEV

profitability

is,

at

worst,

just

around

thecorner,

facilitated

by

increased

investment

andeconomiesofscale.In

a

further

sign

that

the

world

is

moving

away

fromICE

vehicles

and

towards

EVs,

it

is

becoming

clear

thatglobal

demandfor

oilis

slowing.With

much

of

the

world

beset

by

falling

economic

growth,the

rapid

expansion

of

the

BEV

market

offers

some

respitefrom

theoverarchingnarrative.Sinopec,

the

Chinese

oil

and

gas

conglomerate,

has

saidthat

it

now

expects

gasoline

demand

to

peak

in

China

in2023,

two

years

earlier

than

it

previously

predicted.

Itattributes

the

end

of

growth

to

the

surging

demand

forBEVs

in

thecountry.5As

a

result,

it

is

not

just

OEMs

that

are

latching

on

to

thepotential

of

BEVs,

but

governments

too.

And

just

ascompanies

want

to

fend

off

competition

in

their

pursuit

ofBEV

salesgrowth,

so

docountries.

Authorities

in

Europe,China

and

beyond

are

therefore

seeking

subtle

ways

tolimit

the

success

offoreignOEMs

in

their

markets.GM

believes

that

its

BEVs

will

become

profitable

from2025,

thanks

in

large

part

to

its

Ultium

platform

with

aflexible

battery

architecture

and

stated

ability

to

increasepower,

driving

range

and

performance.1Volkswagen

madea

similar

forecast,

stating

that

the

company

will

be

able

tobuildsomeBEVsatthe

same

profit

marginsasICEmodelsby2025.2The

trend

is

not

unique

to

China.

According

to

theInternational

Energy

Agency,

global

oil

demand

will

trickleto

a

halt

over

the

coming

years,6

while

oil

use

for

transportwill

go

into

decline

after

2026

as

the

popularity

of

electricvehicles,

the

growth

of

biofuels

and

improving

fueleconomy

allreduce

consumption.7Francehas

published

neweligibility

rules

for

BEVpurchaseincentives,

tied

to

environmentally

friendly

production,

thatmay

exclude

vehiclesmade

in

China.

Among

other

criteria,models

will

be

scored

against

government-set

thresholdson

the

energy

used

to

make

their

constituent

materials.

Asthe

Chinese

industry

relies

heavily

on

coal-generatedelectricity,

its

vehicles

are

likely

to

miss

out

on

theincentive.8BMW

declared

that

the

company

already

makes

just

asmuch

profit

from

the

sale

of

electric

vehicles

as

they

dofrom

ICE

models,

and

such

profits

would

increase

with

theadvent

of

the

Neue

Klasse

generation

of

BEVs.

Althoughthe

company

admitted

that

BEVs

were

more

expensive

toproduce,

these

costs

areoffset

byhigher

prices.3Meanwhile,

the

European

Union

has

launched

aninvestigation

into

whether

to

impose

punitive

tariffs

againstimported

Chinese

BEVs,

whose

prices

are

arguably

keptartificially

low

by

state

subsidies.9This

move

would

clearlyprotect

EU

producers.However,

Mercedes-Benz

struck

a

more

cautious

note,emphasizing

that

their

variable

costs

for

producing

BEVswould

remain

higher

than

for

ICE

models

for

theforeseeable

future.

These

variable

costs

include

rawmaterials

for

batteries,

software

development,

andelectricity

prices.

The

company

is

therefore

working

tooptimize

fixed

costs

and

resource

allocation

to

achievesimilar

profitability

withBEVs

as

for

ICEs.4In

a

possible

retort,

China

is

considering

the

introduction

ofCO

limits

for

all

vehicles.

Every

BEV

also

emits

CO

,

but22this

isdueto

electricitygenerationatthe

powerplantratherthan

from

the

exhaust.

German

BEVs

tend

to

be

in

biggervehicle

segments

and

would

be

particularlyaffected

byanysuch

limit.10Sources:Strategy&1Carscoops,

13

September

2023;

2Reuters,

17May

2023;

3DW,

2September

2023;

4Reuters,

4September

2023;

5Bloomberg,

29August

2023;

6CNBC,14

June

2023;

7IEA,

14June

2023;8Reuters,

20September

2023;

9Reuters,

13September

2023;

10FOCUSOnline,

29

September

202352.

Analyst

insightsLargestEuropean

marketstolead

theBEVcharge

in2024Current

market

trends

point

to

a

35%

increase

in

BEVsales

for

2024

in

the

twenty

analyzed

markets.

However,beneath

this

headline

figure

lies

a

nuanced

picture

in

eachparticular

region,

andfor

eachOEM.Domestic

manufacturers

are

getting

stronger

and

will

havea

market

share

of

more

than

50%

in

China

for

the

first

timeasof

2023.1OEMsGermanOEMs

are

set

to

enjoya

global

increase

of

40%

inBEVsalesin2024.

Thesignificantgrowthisalsoduetothefact

that

German

OEMs

are

entering

2024

with

an

overalllowerBEV

shareunlike

Chinese

OEMs.Intensifying

competition

means

that

several

local

andforeign

OEMs

will

fall

by

the

wayside.

In

addition,

there

aresome

concerns

that

a

trade

war

might

develop

betweenChina

and

Europe,

resulting

in

government

measures

thatcould

stymie

the

growth

of

foreign

OEMs

in

the

Chinesemarket.EuropeThe

top

5

European

markets

(Germany,

France,

UK,Italy

and

Spain)

are

set

to

enjoy

BEV

sales

growth

of43%

in

2024.

However,

there

is

very

much

a

dividebetween

the

Northern

and

Southern

European

countries.Germany,

the

UK

and

France

are

all

hovering

the

inflectionpoint,

around

16%

BEV

market

share,

widelyconsidered

atwhich

mainstream

consumersgive

seriousconsideration

toa

BEV

purchase.

We

therefore

believe

that

BEV

sales

willgainfurther

steam

inthese

markets

during2024.Established

ChineseOEMs

are

forecastedto

increase

theirBEV

sales

at

a

slightly

faster

rate

than

their

new

Chineserivals

(32%

vs.

30%),

as

the

latter

are

less

known

outsideof

their

home

country.

Aside

from

a

lack

of

global

brandawareness,

Chinese

OEMs

face

other

disadvantages

andrisks,

such

as

the

danger

of

spreading

themselves

toothinly

andprotectionist

measures

from

importing

countries.USAWe

estimate

that

the

US

BEV

market

will

grow

by

27%in

2024.

There

is

still

some

ambiguity

about

therepercussions

of

the

tax

credit

for

new

EV

purchases

to

beintroduced

in

2024,

which

excludes

cars

with

batterycomponents

from

any

source

the

US

regards

as

a

“foreignentity

of

concern”.

Individual

OEMs

will

face

thecommercial

consequences

if

their

vehicles

are

deemed

nottoqualify.In

both

cases,

the

strong

gainsfrom

BEV

sales

in

2024

aredue

to

higher

overall

sales

compared

to

2023

and

to

thecannibalization

of

ICE

sales

byBEVs.The

picture

in

Spain

and

Italy

is

less

rosy.

The

marketshare

still

labors

in

single

digits,

bringing

down

the

overallaverage

of

the

European

top

5.

This

does

not

alter

thelonger-term

prognosis,

however.

Given

the

growing

parityin

the

total

cost

of

ownership

between

BEV

and

ICEvehicles,

and

planned

EU

and

UK

rules

on

the

purchase

ofzero-emission

cars,

there

is

a

clear

path

towards

100%BEV

sales

throughout

theentire

regionby2035.BEVsales

in

millionunits(2019

–

2024F)76543210Market

ShareBEVsSales

2024YoY

Growth2024ChinaEurope

Top

5China1,846,0006,865,0001,462,00018.1%42.6%33.9%27.4%China

will

remain

by

some

distance

the

largest

singleBEV

market

in

the

world

in

2024,

although

a

weakeningeconomic

outlook

is

set

to

limit

BEV

sales

growth

to

a

stillhealthy

34%.27.7%9.8%USA20192020202120222023FUSA2024FEurope

Top

5ChinaSources:Strategy&1CAAM,

10

October

2023;

PwC

Autofacts

Analysis,

AAADATA,

ANFAC,ANFIA,

ANL,CAAM,

CPCA,KBA,

SMMT62.

Analyst

insightsTesla

Model

Ycontinuestodominate

keymarketsTop

BEV

models

in

Q1-Q3

2023European

Top

4ModelUSAChinaSales

Jan-Sep’2378,014ModelSales

Jan-Sep’23296,059166,04249,494ModelSales

Jan-Sep’23320,109Tesla

Model

YFiat

500eTesla

Model

YTesla

Model

3Chevrolet

Bolt

EV/EUVFord

MustangMach-EVolkswagen

ID.4HyundaiIONIQ

5Tesla

Model

XBMW

i4Tesla

Model

YBYDDolphinBYDYuanPlusAion

S38,746221,579Volkswagen

ID.4,

ID.5Dacia

Spring34,790217,6704532,84428,882182,230Tesla

Model

3Peugeot

E-208MG431,05427,155Wuling

Hongguang

Mini

EVAion

Y169,526626,28625,306163,552724,88018,174BYDSeagullTesla

Model

3Wuling

BingoChangan

Lumin119,8288Volkswagen

ID.3Renault

MeganeElectricSkoda

Enyaq23,27917,181113,620919,660RivianR1S16,54092,5381017,597Kia

EV614,79892,080Strategy&Source:

PwC

Autofacts

Analysis,

KBA,

AAAData,

DGT,

UNRAE,

CPCA73.

Electric

vehiclesales

dataNew

BEVlaunchesdrive

market

growthQ1

2023Q2

2023Q3

2023Q4

2023BaojunYueyeVolkswagenID.7NIOEC7MiniCooperPorscheMacanFiat600BYDSeagullBMWi5TeslaCybertruckMGAir

EVLexusRZChevroletSilverado

EVStrategy&Source:

S&PGlobal

Mobility

Light

Vehicle

Production

forecast,

October

2023

Release83.

Electric

vehiclesales

dataEVsales

growthcontinuesKey

MarketsElectric

Vehicles

(EVs*)Sep

’22

vs.

Sep

’23

(in

’000

units)YTD

Sep

’22

vs.

YTD

Sep

’23

(in

’000

units)2,00015,0001,75812,6401,6001,200800400012,000+28%1,369+33%9,5039,0006,0003,0000Sep-22Sep-23YTDSep-22YTDSep-23WE

5+5ChinaUSAStrategy&*EV

=Battery

Electric

+Plug-in

Hybrids

+

Hybrids93.

Electric

vehiclesales

dataBEV

sales

surged

inWE

5+5and

ChinaKey

MarketsBattery

Electric

Vehicles

(BEVs)Sep

’22

vs.

Sep

’23

(in

’000

units)YTD

Sep

’22

vs.

YTD

Sep

’23

(in

’000

units)1,000+19%8907,0006,0006,565749+32%4,9697505,0004,0003,0002,0001,00050025000Sep-22Sep-23YTDSep-22YTDSep-23WE

5+5ChinaUSAStrategy&103.

Electric

vehiclesales

dataPlug-in

momentumstays

strong

in

ChinaKey

MarketsPlug-in

Hybrid

Electric

Vehicles

(PHEVs)Sep

’22

vs.

Sep

’23

(in

’000

units)YTD

Sep

’22

vs.

YTD

Sep

’23

(in

’000

units)40030020010003783,0002,5472,500+48%255+51%2,0001,6871,5001,0005000Sep-22Sep-23YTDSep-22YTDSep-23WE

5+5ChinaUSAStrategy&114.

Western

Europe

Top5

and

other

European

marketsWestern

Europe

5+5European

Top

5:

France,

Germany,

Italy,

Spain,

and

United

KingdomBEV

sales

in

the

top

5

European

markets

grew

by

49%

in

the

third

quarter

of2023

compared

tothecorresponding

period

in

2022.The

strongest

increase

was

recorded

in

Germany,

with

growth

of

59%

incomparison

with

Q3

2022.

Sales

were

particularly

strong

in

August.

There

was

arush

to

purchase

company

vehicles

before

BEV

subsidies

became

exclusivelyavailable

toprivatebuyersatthebeginning

of

September.WE

5+5BEV2023Q3453,000184,000679,0001,316,000Comparison

to

2022Q3+45%+3%The

BEV

markets

in

the

UK

and

France

also

grew

strongly,

up

by

42%

and

40%respectively

from

Q3

2022.

BEV

sales

in

Spain

grew

by

57%,

but

from

a

lowbase.

The

BEV

market

share

in

Spain

stands

at

6%,

compared

to

18%

inGermany,and

16%

intheUKand

France.PHEVHybridTotal+30%+30%The

Italian

BEV

market

lags

behind

even

further,

with

market

share

of

just

4%.Moreover,

while

BEV

growth

far

outstrips

that

of

the

overall

powertrain

market

inthe

vast

majority

of

analyzed

markets,

the

gap

is

not

that

wide

in

Italy.

BEV

salesin

Italy

grew

by

20%

in

Q3

2023

vs.

Q3

2022,

compared

to

growth

of

15%

in

theoverall

new

vehiclemarket.Other

European

markets

+5:

AT,

CH,

NL,

NO,

SEThe

largest

BEV

sales

growth

in

the

other

European

markets

was

seen

in

theNetherlands

and

Sweden,

with

increases

of

68%

and

56%

respectively

from

thecorresponding

quarter

last

year.

BEV

sales

in

Norway,

which

at

83%

has

thehighest

BEV

market

share

in

the

world

by

a

considerable

margin,

actuallydeclined

by

5%

QoY

as

the

saturation

point

is

reached.

However,

even

thatfigure

still

outperformed

the

overall

Norwegian

new

vehicle

market,

whichdeclined

by

16%

in

Q32023

vs.

Q32022.Meanwhile,

PHEV

sales

in

the

top

five

markets

showed

no

change

from

thecorresponding

quarter

last

year.

Although

the

PHEV

markets

in

the

UK

andFrance

grew

by

62%

and

49%

respectively,

the

overall

figure

was

brought

downby

a

fall

of

42%

in

Germany.

Despite

the

many

PHEV

models

on

offer

inGermany,

it

seems

that

the

cessation

of

PHEV

incentives

at

the

end

of

2022

hascontributed

todeclining

interest.Strategy&124.

United

StatesUnited

StatesThe

US

BEV

market

grew

by

62%

in

the

third

quarter

of

2023

incomparison

with

the

same

quarter

in

2022.

Given

that

the

increase

intotal

vehicle

sales

in

the

same

period

was

only

17%,

the

figures

arefurther

confirmation

of

the

growing

strength

of

the

country’s

BEVmarket,

which

took

considerably

longer

than

Europe

and

China

to

getoff

the

ground.USA2023Q3303,00080,000Comparison

to

2022Q3BEV+62%+98%+68%+68%Indeed,

837,000

BEVs

have

been

sold

in

the

USA

so

far

this

year.

Ittherefore

seems

inevitable

that

sales

will

pass

theone

million

mark

inthis

calendar

yearfor

the

first

time.PHEVHybridTotal321,000704,000US

BEV

market

share

currently

stands

at

7%.

However,

it

should

benoted

that

this

percentage

represents

a

more

than

threefold

increasesince

the

third

quarter

of

2021,

just

two

years

ago,

when

marketshare

stood

at

2%.

Government

incentives,

popular

new

models

andthe

development

of

the

country’s

charging

infrastructure

continue

tostimulate

popular

demand

for

BEVs.The

HEV

and

PHEV

markets

also

both

performed

strongly

in

Q32023.

For

the

second

quarter

in

succession,

more

hybrids

than

BEVswere

sold,

while

PHEV

sales

continued

their

surge

of

recent

monthsafter

a

period

ofslow

growth.Strategy&134.

China

and

other

countries

in

AsiaChina

and

other

Asian

countriesChinaChina’s

BEV

sales

increased

by

16%

in

Q3

2023

from

the

corresponding

quarterlast

year.

Although

this

figure

still

comfortably

exceeded

the

increase

of

6%

intotal

vehicle

sales

over

the

same

period,

it

constitutes

a

significant

drop

from

theheady

years

of

2021

and

2022,

when

BEV

sales

grew

by

172%

and

85%respectively.

The

slowing

growth

can

be

attributed

in

large

part

to

the

weakeningeconomic

performance

inChina

and

greater

interest

inPHEVs.ChinaBEV2023Q31,765,000765,000Comparison

to

2022Q3+16%+71%-2%PHEVHybridTotalHowever,

PHEV

sales

have

been

less

affected

in

recent

quarters,

and

increasedby

71%

in

Q3

2023

compared

to

the

same

period

last

year.

The

purchase

taxexemption

for

NEVs

(new

energy

vehicles),

whose

broad

definition

incorporatesboth

BEV

and

certain

PHEVs

with

a

long

enough

all

electric

range,

is

certainlyhelping

toshore

upthis

market.237,0002,768,000*+25%The

year

to

date

market

share

for

BEVs

and

PHEVs

stands

at