Key facts
- Global electric vehicle registrations rose 3% year-on-year in May to approximately 1.8 million units.
- European EV registrations increased by 23% in May, reaching about 415,000 units.
- Chinese EV registrations decreased by 9% year-on-year in May.
- North American EV sales declined by 26% in May.
- Chinese automakers are increasingly looking to expand into the global market and potentially produce in Europe.
Global demand for electric vehicles saw a 3% year-on-year increase in May, reaching approximately 1.8 million registrations, according to data from consultancy Benchmark Mineral Intelligence (BMI). This marks the third consecutive month of growth, driven by subsidies and high petrol prices encouraging a shift away from combustion-engine cars.
Europe was the primary driver of this growth, with registrations climbing 23% to about 415,000 units in May, boosted by government incentives and fuel costs. However, the global picture remains uneven.
In China, registrations fell 9% year-on-year to roughly 987,000 vehicles in May, following the withdrawal of support for auto trade-ins and the expiration of a tax break on EV purchases. BMI noted that Chinese original equipment manufacturers (OEMs) are increasingly looking to expand into the global market, with potential joint ventures to produce in underutilized European capacity.
North America experienced a significant drop of 26% in sales, with approximately 123,000 units registered in May. This decline was attributed to the end of a U.S. tax credit scheme and proposals to ease emissions rules, leading to a pivot towards internal combustion engine and hybrid vehicle production in the U.S. Canada's decision to open its market to some Chinese OEMs is not expected to substantially alter the North American EV market's trajectory.