I believe the below article explains the massive jump in revenue as well as profit for the company in q3fy23. Important points to note from the article are –
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As 2022 came to an end, China’s subsidy for pure battery EVs had the biggest drop since 2019, declining to nil from Yuan 12,600/unit. This was more than double the reduction of Yuan 5,400/unit in 2022 and Yuan 4,500/unit in 2021.
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“A lot of EV demand has been brought forward, so I think the first half of 2023 will not look good,” said a source from a China-based lithium converter.
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“There might be a deceleration in demand due to the end of Chinese subsidies for EVs, but not a decrease – deceleration and decrease are different things,” the producer added.
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Similar to China, state subsidies in Germany for plug-in hybrids expired at the end of 2022, and those for purely battery-electric passenger cars were reduced. But Germany’s new electric car registrations increased 114% in December 2022 compared to December 2021, reaching a new monthly record of 174,200 units, according to the German Association of the Automotive Industry, or VDA. The record shows future EV purchases were brought forward, the VDA said.
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Despite the several risks for EV sales growth in 2023, the long-term shift away from internal combustion engine vehicles remain unaffected. S&P Global Mobility projects that the share of battery electric vehicles, plug-in hybrid electric vehicles and fuel-cell electric vehicles in new light vehicle sales in Europe, mainland China and the US will rise to 70%, 49%, and 47% in 2030, respectively, from an estimated 19%, 18% and 8% in 2022.
Disclosure – Not Invested.
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