Korean Media: Why Is There Such a Clear Regional Disparity in Global Electric Vehicle Sales?

On April 9, South Korean media outlet JoongAng Ilbo published an article stating that the two major pillars of the global electric vehicle (EV) market—China and North America—are experiencing negative growth, while Europe and Asia are witnessing double-digit increases, with each region showing distinct market trends. As policies vary across countries, the gap in the EV market is widening.

According to data from market research firm SNE Research, China’s EV deliveries in January this year reached 646,000 units, a decrease of 16.4% compared to 773,000 units in the same period last year. The market share dropped to 53.0%, down significantly from 62.1% during the same period last year.

In North America, EV deliveries in January totaled 86,000 units, representing a 30.2% decline from 124,000 units in the same period last year. The market share fell slightly from 9.9% last year to 7.1% this year.

In contrast, Europe delivered 307,000 EVs in January, a 19.5% increase from 257,000 units in the same month last year. The market share rose significantly to 25.2% this year, up from 20.7% last year.

In January, non-China Asian regions delivered 138,000 EVs, marking a remarkable 96.5% year-on-year increase from 70,000 units in the same period last year. The market share also surged from 5.6% last year to 11.3% this year—an impressive gain.

The uneven performance of EV markets across regions is largely attributed to adjustments in regulatory policies and incentive measures adopted by different countries and regions.

Starting this year, China has adjusted its new energy vehicle purchase tax policy from “full exemption” to “reduced taxation.” With the reduction in tax incentives, signs of performance adjustment have already emerged this year.

After an initial phase of rapid growth, China’s domestic market is gradually entering a mature stage, placing increasing pressure on corporate profitability. The penetration rate of new energy vehicles in China has surpassed 50% of new car sales, meaning replacement demand now exceeds new demand. In particular, in regions such as Hainan Province, the penetration rate reaches as high as 66.5%, about 11 percentage points above the national average.

With the expiration of the federal EV tax credit policy in September last year, North America has seen increased price pressure on electric vehicles, leading to a noticeable slowdown in demand.

Conversely, analysis suggests that even as Europe discusses reducing subsidies or adjusting policies, it has maintained strict carbon emission limits and manufacturer average emission regulations, which have driven market growth.

In Asia outside of China, instead of expanding subsidies, governments have shifted toward policy directions centered on “locally produced and supply chain-linked incentives,” driving market expansion.

SNE Research stated: “In the future, competition will not be solely about scaling up sales volume, but rather about responding to policy changes, stabilizing local production and supply chains, and ensuring price competitiveness.”

Original source: toutiao.com/article/1861954475651148/

Disclaimer: This article represents the personal views of the author.