Top 6 Trends in Global EV Market in Q2-2022 0 0 Global EV sales in Q2-2022 breached the 3.5M units. The sales volume was comprised of BEV, PHEV & BEV. The big 3 automotive markets China, Europe & US accounted for ~81% of the market i.e., 3.1M out of 3.5M units 1. EV SALES IN TOP 3 AUTO MARKETS In China, the EVs share increased sharply as ~28% of the new passenger vehicles sold in Q2-2022 were EVs. In H1-2022, total number of EVs sold crossed 3M and the number is expected to breach 6M units in 2022. China’s vehicle exports also increased 65% from a year ago, with electric vehicles accounting for 27% of them. In Europe EVs (BEVs+HEVs+PHEVs) accounted for 41% of the overall Passenger Vehicles sold in the Q2-2022 period. The share was ~37% for the year 2021. In Europe, VW Group was the market leader followed by Stellantis & Hyundai Motors in 2nd & 3rd place respectively. With the EVs like the Peugeot 308 and 3008, as well as the Opel Astra, coming soon, Stellantis is pushing hard for the top spot as the difference in sales volume between VW and Stellantis was ~11k at the end of H1-2022 The sales of EVs in the US reached record volumes with 442K+ sales in the 2nd quarter of 2022. This was an increase of 12.9% from year-ago. The share of total electrified vehicles out of overall passenger car sales in Q2-2022 was 12.6%, a drastic increase from 89% in the same period in 2021. 2. EV BATTERY MANUFACTURING AND NEW DEVELOPMENTS Battery cell prices are expected to surge by 22% from 2023 through 2026, peaking at $138 per kilowatt-hour. The price of EV battery cells has declined in recent years as production increased across the plants Battery cells currently cost ~$128 per kWh on average, and by next year could cost around $110 per kWh. The expected surge in battery costs could drive the price of EVs sold in 2026 up anywhere between $1,500 and $3,000 per vehicle Honda and LG Energy Solutions are partnering to set up a battery plant in Ohio. Honda plans to spend S$51.2 Billion on its push into EV over the next decade CATL’s new battery Qilin is expected to have an efficiency of 72% over the industry standard of 50%. CATL will begin mass production of this battery in 2023 LG will be spending $ 567M in expansion of the battery plant at the Ochang plant in North Chungcheong. $450M is spent on making cylindrical battery facility for the making of 4680 cells with an annual capacity of 9GWh inside Ochang Plant 2 Samsung increased its battery manufacturing facility at Chenon Plant in S.Korea. These are the cylindrical batteries that will be supplied to Tesla 3. TESLA BATTERY SOURCING AND ITS IMPACT ON EV PRICE BYD will be supplying the LFP blade battery which was launched in 2020. Tesla uses LFP batteries supplied by Chinese firm CATL in nearly half of its cars. Tesla also uses nickel and cobalt batteries, supplied by LG Energy Solution and Panasonic Panasonic’s “4680” EV cell samples are sent to Tesla and batteries from these samples are produced in association with Tesla. These are a new tab-less battery cell in a bigger format with new chemistry, enabling cheaper and/or longer-range electric vehicles. Panasonic’s 4680 EV battery is expected to go under production in 2023. This is expected to bring down the price of a Tesla EV Models by about $25,000 4. NEW DEVELOPMENTS IN EV POWER ELECTRONICS COMPONENTS Vitesco will be supplying its EMR4, 4th gen Electronics Motor Reducer e-axle to Hyundai’s B & C Segment EVs from 2024. The e-axle in a single package comprises an electric motor, power electronics and a gearbox (single-speed also called a reducer) The E-axle developed by BluE Nexus Corporation, AISIN Corporation, and DENSO Corporation was fitted in the Toyota’s bZ4X model. The eAxle has a power of 150kW specification (front) for FWD vehicles and 80kW specifications (front and rear) for 4WD vehicles Nidec Corporation will be building an e-axle production plant in Pinghu, Zhejiang Province in China. In October 2022, the construction of the plant is expected to start and the company has planned to start production in October 2023. LG Magna EV Powertrain laid the foundation stone in Arizpe, Mexico. This plant will be completed by 2023 and will be producing inverters, motors and on-board chargers for EVs from General Motors BorgWarner developed an EV inverter with “Viper” technology which helps in limited consumption of Semiconductor & SiC material. The 800V architecture inverter will be fitted in 2 high performance electric SUVs Toyota Industries Corporation developed the compact unit of integrated DC-DC Converter and On-Board Charger for the BEVs. This component is ~23% smaller in size and about 17% lighter than the combination of these 2 units 5. UPDATES ON GOVERNMENT INCENTIVES FOR ELECTRIC VEHICLES In the US, Currently, the credits/incentives are phased out after a manufacturer has sold 200,000 electric or plug-in hybrid vehicles. For the first time, in the country electric used cars are subjected to an incentive (tax waiver) of $4,000. This will boost the electric used car segment which was very naive in the US Guangdong’s government in China announced that consumers who buy a new electric car to replace another vehicle will receive a subsidy of 10,000 yuan (US$1,513) in May and June 2022. China is planning to extend EV subsidies, and the government considers it necessary to stimulate the market, besides tackling slow growth in the auto industry till 2023. The French government had planned to cut the subsidies from January 1, 2022, reducing subsidies for private purchases of pure electric vehicles to 5,000 euros, for corporate customers to 3,000 euros, and for plug-in hybrid models completely. However, the government extended the subsidies till July 2022 In Germany, at present, buyers of electric-only cars are eligible for government incentives of up to 6,000 euros ($6,100) and people who buy plug-in hybrids can get up to 4,500 euros ($4,570). In Japan, the government has invested heavily, allocating around 8 billion yen ($77.4 million) which would be enough for around 10,000 battery electric cars. Incentives for battery electric cars and PHEVs will both double from 400,000 yen to 800,000 yen ($7,743) and from 200,000 yen to 400,000 ($3,872) yen respectively. The South Korean government has increased electric vehicle subsidies to $4 billion until 2025. The South Korean government announced plans to invest KRW397bn (US$318m) this year to expand the country’s electric vehicle (EV) recharging and hydrogen refuelling networks, as it looks to promote growth in zero emission vehicle ownership. 6. EV CHARGING INFRA DEVELOPMENTS In Q2 2022, Tesla had a fast expansion rate of its Supercharging network. The number of new stations amounted to 247 in U.S More than 50 U.S. power companies in 2021 have joined forces to build a coast-to-coast fast charging network for electric vehicles along major U.S. travel corridors by the end of 2023. 3,500+ DC fast chargers at approximately 600 sites planned through 2023 in USA and Canada by Rivian in 2021 exclusively for Rivian owners only with a charging output of 200kW initially and then upgrading to 300kW+. In Germany, ABB E-mobility and Shell planned to launch the network of Terra 360’s, the world’s fastest electric car charger capable of charging 100km in less than 3 minutes. The companies plan to launch over 200 chargers across Germany in the next 12 months covering more than 1.7 million German electric car drivers. In the first half of 2022, China built around 963,000 charging piles, 272,000 public EV charging piles and 691,000 private ones. China aims to have no less than 80 percent coverage of fast-charging stations in highway service areas in national ecological pilot zones by 2025 India has recently installed 1,640 operational public EV chargers, 940 of which are concentrated in nine major cities including Bengaluru, Delhi and Mumbai. In India, the government has asked the state-run oil marketing companies to set up 22,000 EV charging stations in prominent cities and on national highways across the country. The information has been sourced from our report titled “Global EV Market Update”. Download free sample to know more Ashutosh M, Senior Research Analyst at Mobility Foresights
