Tesla has continued its climb up the global model rankings, with two of its four models available in 2022 making it into the world’s top 10 best-selling vehicles. This is a significant achievement for the relatively new brand, and particularly impressive considering that Tesla’s vehicles are not the most affordable on the market.
According to JATO Dynamics data, 79.4 million new vehicles were registered globally in 2022, marking a 2% decrease on the 80.7 million units registered in 2021. However, there were positive results in several emerging markets, which represented 24% of global volumes, helping to offset declines seen in North America, Europe, and China.
The decline in global new vehicle sales can be attributed to ongoing supply chain disruption and the shortage of semiconductors in North America and Europe, which led to a reduction in the availability of new vehicles, while sales in China, the world’s largest market, weakened.
In contrast, demand in India soared by 24% to a new record of 4.37 million registered units, surpassing Japan to become the world’s third largest car market. This was due to consumer confidence being bolstered by the recovering economy and supportive government policies.
The surge in battery electric vehicle (BEV) sales continues, with the total volume of BEVs increasing by 66% in 2022 to a total of 7.37 million units. The global market share for BEVs jumped from 5.5% in 2021 to 9.3% in 2022, with China and Europe securing a double-digit share of the market. China led the way as the world’s largest market in terms of volume, accounting for 53% of global sales, while Norway continued to set the standard for EV adoption globally.
In terms of OEMs, Toyota was the world’s best-selling manufacturer in 2022, accounting for 13 of every 100 new light vehicles purchased, followed by Volkswagen Group in second place. Chinese OEMs also saw significant gains in the global market, with almost 1.5 million light vehicles made by Chinese OEMs being sold outside China in 2022, a 48% increase compared to the previous year.
Sales of SUVs increased by 2.3% to a record 32.8 million units, with the majority of these vehicles sold worldwide being compact SUVs. This came at the expense of traditional segments such as sedans, hatchbacks, MPVs, and wagons, which experienced a 2% decline.
Looking ahead to 2023, while the decline in sales in 2022 was not unexpected, new challenges have emerged, particularly with Chinese OEMs at the forefront of the EV transition rapidly gaining a foothold across markets with an increasingly competitive and affordable offering. Established Western OEMs will need to follow suit if they are to maintain their position in the market.
