Data released on Tuesday by consultancy Benchmark Mineral Intelligence (BMI) indicates that global demand for electric vehicles increased for a third consecutive month in May, propelled by government subsidies and high oil prices accelerating the shift from traditional fuel vehicles to new energy vehicles.
BMI reported that the number of newly registered battery electric vehicles and plug-in hybrid electric vehicles in May rose by 3% year-on-year to approximately 1.8 million units. This brought the total sales for the first five months of the year to a 0.9% increase compared to the same period last year.
"At the moment, Europe is really the main driver of this growth," stated Charles Lester, Data Manager at BMI.
Lester noted that registrations for battery electric and plug-in hybrid vehicles in Europe surged by 23% in May to around 415,000 units, stimulated by government incentives and consumers making purchases ahead of time due to high fuel costs.
According to BMI's data, registrations for these vehicle types in China during May fell by 9% year-on-year to approximately 987,000 units.
BMI pointed out that following sluggish domestic sales so far this year, a growing number of Chinese original equipment manufacturers are looking to expand their presence in global markets more aggressively.
In North America, sales dropped by 26% in May to about 123,000 units. This decline is attributed to the expiration of the U.S. tax credit program and the previous administration's proposal to further relax carbon dioxide emission regulations.
Lester commented that the focus in the United States has shifted towards the production of internal combustion engine and hybrid electric vehicles.
He added that Canada's move to open its market to some Chinese automakers is insufficient to significantly alter the trajectory of the North American electric vehicle market.
Comments