It’s good news, bad news time at Bloomberg New Energy Finance. First the good news. Global electric car sales (including plug-in hybrids) surged 63% in the third quarter of this year and are up 23% since the second quarter. BNEF is now confident EV sales will top 1,000,000 units this year. The bad news? China accounted for almost all those increases.
Sales of electric cars totaled 287,000 in July, August, and September with China responsible for half of them. Sales in other markets are trending up gradually, but nothing like what is happening in China. The increase in EV sales in China can be traced directly to a number of government policies that strongly encourage people to purchase an electric car instead of a conventional car. Many policy makers are worried their own incentive programs are too generous but the Chinese experience makes it clear if you want people to buy electric, you have to make it worth their while.