Despite Global Supply Chain Concerns, Electric Vehicle Sales in Q1 Increase 76% Year-on-Year

[Asia Economy Reporter Yoo Hyun-seok] While the automobile market has been stagnant due to semiconductor supply shortages and the Russia-Ukraine conflict, the sales volume of electric vehicles (EVs) has rather grown significantly.

According to energy-specialized market research firm SNE Research on the 16th, global EV sales in the first quarter recorded 1,972,000 units, a 76% increase compared to the same period last year. However, it decreased by about 12% compared to the previous quarter.

The Chinese market recorded 1,105,000 units, a 143% increase year-on-year, despite lockdown measures and subsidy cuts due to the resurgence of COVID-19 starting in March.

The European market faced ongoing vehicle semiconductor supply issues and the Russia-Ukraine war, which increased the burden on the automobile supply chain. As a result, first-quarter EV sales reached 566,000 units, a 19% increase compared to the same period last year. However, it decreased by 22% compared to the previous quarter.

The U.S. market recorded 215,000 units, a 63% increase year-on-year, driven by strong sales from Tesla. It also increased by 5% compared to the previous quarter.

SNE Research expects global EV sales this year to be about 9.3 million units, a 5% downward revision from previous forecasts due to the Ukraine situation and semiconductor supply shortages. However, this figure represents a 43% increase compared to last year.

The Chinese market is expected to see a slight decline in EV sales in the second quarter due to strengthened city lockdowns under the zero-COVID policy. However, demand is projected to rebound from the second half of the year due to the expiration of EV deposit policies and the launch of new models at the end of 2022. Additionally, EV sales are expected to expand in Europe due to new model launches by European automakers to meet environmental regulations, and in the U.S. due to the Biden administration’s eco-friendly policies.

This content was produced with the assistance of AI translation services.