Share

Electric car sales fall for first time after China cuts subsidy

Global electric-car sales fell for the first time in modern history in July after China scaled back purchase subsidies, highlighting the role government assistance is having on the burgeoning market.

Monthly sales worldwide fell 14% to about 128 000 plug-in passenger electric vehicles, Sanford C. Bernstein said in a report Tuesday. Sales declined in China and North America, while rising in Europe.

Growth in China, the biggest producer and market for electric vehicles, is slowing down as a reduction in EV subsidies and a cooling economy weigh on consumers’ buying decisions. China’s government scaled back funding for individual purchases of new-energy vehicles starting June 26 to encourage carmakers to focus on product innovation.

While electric vehicles account for just a few percent of the car market, automakers are betting on the segment for future growth. Slowing demand for gas guzzlers has plunged automobile markets worldwide into a decline, led by a historic drop in China.

For the first seven months of the year, the global electric-car market showed growth of 35%, Bernstein said. The researcher estimates that full-year sales will rise by 23% to 48% to 2.4 million to 2.9 million units in 2019.

"Unsurprisingly the growth momentum halted in July amid subsidy cuts,” Bernstein analysts said in the report. “Despite expected short-term weakness in 2H19, we continue to be positive on long-term EV demand."

Tesla led the passenger EV market with sales of about 20 000 units in July, followed by BYD, the Chinese brand backed by Warren Buffett.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.90
+0.2%
Rand - Pound
23.85
+0.2%
Rand - Euro
20.39
+0.2%
Rand - Aus dollar
12.32
+0.2%
Rand - Yen
0.12
+0.2%
Platinum
908.05
0.0%
Palladium
1,014.94
0.0%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders