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Global electric-car sales fell for the first time in modern history in July after China scaled back purchase subsidies, highlighting the role government assistance is having on the burgeoning market.<\/p>\n
Monthly sales worldwide fell 14% to about 128,000 plug-in passenger electric vehicles, Sanford C. Bernstein said in a report Tuesday.<\/p>\n
Sales declined in China and North America, while rising in Europe.<\/p>\n
Growth in China, the biggest producer and market for electric vehicles, is slowing down as a reduction in EV subsidies and a cooling economy weigh on consumers\u2019 buying decisions.<\/p>\n
China\u2019s government scaled back funding for individual purchases of new-energy vehicles starting June 26 to encourage carmakers to focus on product innovation.<\/p>\n
While electric vehicles account for just a few percent of the car market, automakers are betting on the segment for future growth. Slowing demand for gas guzzlers has plunged automobile markets worldwide into a decline, led by a historic drop in China.<\/p>\n
For the first seven months of the year, the global electric-car market showed growth of 35%, Bernstein said. The researcher estimates that full-year sales will rise by 23% to 48% to 2.4 million to 2.9 million units in 2019.<\/p>\n
\u201cUnsurprisingly the growth momentum halted in July amid subsidy cuts,\u201d Bernstein analysts said in the report. \u201cDespite expected short-term weakness in 2H19, we continue to be positive on long-term EV demand.\u201d<\/p>\n
Tesla Inc led the passenger EV market with sales of about 20,000 units in July, followed by BYD Co, the Chinese brand backed by Warren Buffett.<\/p>\n