Sales numbers across the region are still increasing as we wrap up the first half of 2023. Despite its economic troubles nationally, Italy continues to post positive growth, some 26% up on year-to-date 2022 levels (May), although down a fifth on pre-2020 numbers.

Similarly, Austrian sales have progressed well to around 20% up on 2022 figures, with Swiss sales also seeing nigh-on 17% growth on last year. Despite being down on their European counterparts, French sales still saw a positive increase of around 15% in May. Renault Group also posted a significant uptick: 18% growth on 2022 and a boost in market share to 27%.

These increases are likely a result of late registration numbers, on account of delays to production. However, despite healthier than anticipated sales as the industry slowly recovers from chip and material shortages, Europe continues to see frequent price rises, with weekly changes in many cases. As manufacturers catch up on production shortfalls, will we see this reflected in registration numbers falling by year end and into 2024?

As we’ve seen over the last 12-18 months, brands are continuing to review their product ranges as the trend towards SUVs gather pace and electrified models are released. Volkswagen recently announced that its Arteon model range will be discontinued as the marque focuses on its profitability and reviews lower-volume offerings.

As reported previously, the Swedish private leasing market saw a drop in its fees for EVs and this continues into May. The Government is also set to prioritize setting up more charging stations to facilitate EV ownership for people living in apartment buildings according to local press coverage. Forecast for EV sales in the market during 2023 has also been adjusted from 40% to 35%, likely a reaction to the state incentives that were dropped late last year.

Korean market officials confirmed that the tax reduction, previously in place across 2022 and into the first half of the year, will be terminated effective from 1st July. The taxation will now be restored to the original 5% figure.

According to industry officials, the Samsung, SK, and LG business companies will team up with Hyundai Motor Group to create an electric vehicle alliance. The alliance is expected to see Samsung's autonomous-driving semiconductors and SK's batteries being installed in EVs made by Hyundai and KIA, while LG's organic light-emitting diode (OLED) instrument panels will also be fitted.

With a potential new Government forming in August, the Thai market is expected to see automotive legislation changes that may well impact on future EV technologies. Chinese firm CATL has announced a partnership with a local Thai company to build batteries and Chery has announced it will partner with local businesses to build an EV facility from 2024, with production expected to start within a couple of years. Additionally, Hyundai is to set up a manufacturing hub for EVs and is currently in talks with local regulators to facilitate this.

In China, Nio announced that it would be reducing prices by approximately USD 4,000 across all its vehicle line-ups. Additionally, the company will no longer offer limited free battery swapping services as a standard benefit to new customers. Instead, Nio plans to introduce ‘flexible charging and swapping packages’ soon so that they can maintain stable pricing and not introduce lower-cost models as part of a consistent strategy. This means new customers will now need to pay for battery replacements with fully charged ones at Nio’s battery-swapping facilities or charge at home with the charging equipment provided by the firm.

Tesla has started using BYD blade batteries for the Model Y electric crossovers produced at the Berlin gigafactory, significantly increasing charging speeds. CATL also supplied for Model Y in Europe, but in early May it was reported that Tesla had started using BYD as a second supplier as their blade battery charges at a higher speed for the entire charging duration.

Australia’s Luxury Car Tax is set to change from 1st July. The current threshold will increase to AUD 76,950 and for fuel efficient models to AUD 85,000. Sales for the market reached 106,000 in May, higher than average and seen as a result of orders being fulfilled from 2022. The State of Victoria has removed its AUS 3,000 EV rebate; BYD has taken advantage of this by selling Atto3s at a greatly reduced starting price (from approximately AUD 45,000). The Federal Government is also bringing in the removal of a fringe benefit tax on EVs.

While sales are improving across most markets, there appears to be an inability to transport models in a timely fashion. A large number of vehicles in the region have been reported as currently stranded at ports and factories, as local infrastructure struggles to cope with the ramp-up in shipping requirements.

In the US, Mazda Motor Corporation and Panasonic Energy have commenced discussions on establishing a medium- to long-term partnership to meet the demand for battery EVs and automotive batteries. Rivian Automotive has reached an agreement to access Tesla's Supercharger network starting from 2024 and will also incorporate Tesla's charging port design into its future electric vehicles. Hyundai will also consider making its vehicles more readily compatible with the charging standard Tesla is pushing for in North America.

The Brazilian Government has announced new incentives for OEMs to improve sales, giving credit on taxes so cars can be sold for less. In conjunction with OEM’s own discounts, prices have been reduced by up to 15%. However, sales continue to remain low, as interest rates stay very high.