Global EV sales made up 10% of new cars sold in 2022
Yahoo Finance Live anchors discuss data provided by LMC Automative, which highlighted that global EV sales made up 10% of new cars sold in 2022.
Video Transcript
BRAD SMITH: Still some time till the opening bell. Let's take a look at a few trending tickers. We're taking a look here this morning at Tesla, NIO, and other EV makers. They're in focus after new data provided by LMC Automotive shows that electric-vehicle sales in 2022 represented nearly 10% of all new cars sold as strong growth and demand to go to fully electric, that continues to rise here.
And really breaking down some of the numbers here from LMC Automotive, and EV volumes-- manufacturers, they continue to pump out some of the new EV plays here. It's more than just kind of Tesla on the both luxury and mass-market side. As we had seen last year, not just-- and over the past two years, new companies making their foray into the public equities market, whether that be Rivian, whether that be Lucid. But now it also comes in the form of some of the broader international competition.
And so this 10% figure that we've seen in 2022, it's actually an increase of about 8.3% representation that EVs made up in 2021, and particularly here, consumers that switched from gas-powered vehicles. They're really going to be looking for more of the build out of this network, and it's estimated that it's roughly $90 billion that needs to be invested to really build out the charging-station network and infrastructure here in the US.
INES FERRÉ: Yeah, and that's going to be critical for the adoption of electric vehicles. But also just the fact that Europe and China have been the leaders when it comes to adoption of EV vehicles-- for the full year, EV accounted for 11% of total car sales in Europe and 19% in China.
And it makes sense because China is a place where electric vehicles are made. You have big electric-vehicle companies that are making those cars there. And then you also have Europe, which is not energy-- which needs energy, is not energy independent. And so therefore Europe is the leader when it comes to electric-vehicle adoptions.
And one interesting tid point is that Volkswagen's head of its China business was talking about the China sales and how China could soon reach a point where sales of conventional vehicles permanently decline vis-a-vis plug-in vehicles. So it's really seeing China just soaring when it comes to electric-vehicle adoption.
BRAD SMITH: Speaking of China, XPeng this morning, they are out with a price cut, and they're actually going to extend maintenance services for free as part of the compensation there here. But this comes after we just saw Tesla recently lowered their prices too. And so in this key market within China and then more broadly internationally-- of course XPeng has representation I believe both in Mountain View, California, here in the US but then additionally in China. You think about the market and the adoption that continues to take place within that region.
And I think for what the market is pushing back on now, it is pushing back at a price level and looking for not just better deals but just better financing as some of the infrastructure is continuing to be invested in. I think there is that incentive that many auto manufacturers have to perhaps bring down the pricing now so that they can have more of a customer-lifetime-value approach and keeping them within their automotive or vehicle ecosystem as well. Often as you get some of those trade in, trade ups if you're on that leasing structure for some of the electric vehicles too-- early in the adoption phases right now.
