Tesla has regained the top position in BEV (battery electric vehicle) sales in the first quarter (Q1) of 2024, despite a 9 percent (year-on-year) decline, a new report showed on Monday.
According to Counterpoint Research, Tesla takes the top spot in BEV sales with a 19 percent market share in Q1.
Among the top three OEMs (original equipment manufacturers), only BYD Group grew 13 percent (year-on-year). At the same time, Tesla and Volkswagen experienced drops of 9 percent and 4 percent (year-on-year), respectively.
According to the report, global passenger EV (BEV+PHEV) sales increased 18 percent (year-on-year) in Q1 this year.
While BEV sales grew by a modest 7 percent (year-on-year) during the quarter, PHEV (plug-in hybrid EV) sales grew 46 percent (year-on-year).
“The cheaper upfront cost of PHEVs when compared to BEVs and the availability of a fuel tank that eliminates range anxiety were among the main reasons for high PHEV demand,” said Research Analyst Abhik Mukherjee.
As per the report, Tesla and BYD have managed to trim their BEV manufacturing costs, allowing them to offer competitive prices.
This has put pressure on other automakers like Ford and GM which are struggling to reduce their manufacturing costs. While analysts believe the EV market is set for significant growth in 2024, there are also signs of a slowdown and annual growth could fall below 20 percent.
“The leveling off of early-adopter interest suggests a shift in consumer dynamics to the mass market in the long term and a new phase of evolution for the EV industry,” said Associate Director Liz Lee.
