Tesla, Inc. TSLA is still the leader of the EV industry, but its dominant market positioning is at risk, according to a new report from Canalys.
EV Competitive Dynamics Shifting: Tesla had a 14% share of the EV market in 2021, a year which saw strong acceleration in sales, Canalys said in its latest Global EV Market Outlook report. The company managed to maintain the top spot despite competition closing in.
Tesla's Model Y SUV sales exceeded the sales of the company's best-selling Model 3 sedan both in Mainland China and the U.S., the research firm said.
Canalys includes both battery EVs and plug-in hybrids in its estimation.
Volkswagen AG VWAGY took the second spot, with a 12% market share. The company's EV focus led to the doubling of its sales in this category of vehicles in 2021. About 60% of Volkswagen's EV sales came from the VW brand.
SAIC, a three-way collaboration comprising Chinese Automaker SAIC, General Motor Corporation GM and Wuling, was ranked third with an 11% market share. Apart from the huge success with the Wuling Hongguang Mini EV, the threesome also benefited from solid sales of SAIC-owned brands such as Baojun, Maxus, MG and Roewe.
China's BYD Company Limited BYDDF, backed by billionaire investor Warren Buffett, had a 9% share of the market. The company more than doubled its EV sales in 2021.
Related Link: Why Tesla Is Being Investigated By Regulators In South Korea
China Key For Global EV Adoption: China accounted for about half of the EVs sold worldwide in 2021, Canalys said. About 6.5 million units of EVs were sold worldwide, with 3.2 million units of those sales occurring in China.
"15% of new cars sold in 2021 in Mainland China were EVs – more than double the percentage in 2020, and there is still a huge opportunity for future growth in 2022 and beyond," said Jason Low, Principal Analyst at Canalys.
In Europe, EVs accounted for 19% of new cars sold, and this percentage was a mere 4% in the U.S.
At last check, Tesla shares were up 4.67% at $916.62.
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