Last year, a total of 12.8 million electric vehicles (EVs) were sold worldwide, including Battery EVs (BEVs), Plug-In Hybrid EVs (PHEVs), and Fuel Cell Vehicles (FCVs), according to a report by TrendForce.
The regional market sales shares were expected to be as follows: 60% in China, 22% in Western Europe, 11% in the US, and 6% in other regions.
As China's subsidies for EVs gradually phase out, Chinese EV manufacturers are now looking to expand internationally, particularly in Southeast Asia. TrendForce projects that by 2023, Chinese EV manufacturers will hold a significant 67.5% market share in this region.
TrendForce also forecasts that China will export approximately 4.8 million automobiles in 2023, with New Energy Vehicles (NEVs) accounting for about 25% of these exports.
The increasing export volumes of Chinese EVs have caught the attention of governments worldwide, as they try to balance the protection of local companies, maintaining competitiveness, and managing consumer costs.
For instance, the United States imposes a 25% tariff on vehicle imports from China. Additionally, EVs and their batteries must be assembled in North America, and critical minerals used in the batteries must originate from countries that have signed free trade agreements with the US to qualify for subsidies totaling US$7,500. As a result, the Chinese supply chain is excluded from these subsidies.
Similarly, the European Union has initiated an anti-subsidy investigation against Chinese-made EVs. Furthermore, France has implemented a new subsidy regime for EVs that requires compliance with carbon emission standards during manufacturing, effectively excluding many EVs imported from China.