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February 4th, 2017 |

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Zachary Shahan

EV Volumes has just released its globalplug-in car sales report for 2016. There are several exciting findings in the report,including a few that we’ve highlighted in recent weeks, but the most striking news for me was that the Tesla Model S and Nissan LEAF clocked in as the best-selling electric cars in the world in 2016.

The point isn’t just to get giddy about Tesla again — the point is that it shows how effective and even criticalthis 100%electric, from-the-ground-up, high-end-models-first, full-EV-ecosystem approach has been. Where would the rest of the EV market be if Tesla hadn’t pushed it forward? Where would the rest of the market be if one of the most desirable cars in history wasn’t a fully electric car?

Similarly, the LEAF targeted a lowerclasswhen it was introduced in 2011, but the “from-the-ground-up” approach continues to carry it forward at the top of the electric car sales charts.

Another tophighlight for me was that was #1 as far as overall company sales of plug-in cars,which again emphasizes how a strong “EVs first” approach has been demonstrablyeffective. Of course, BYD also benefits from being the leader in the hottest — and quite unique — EV market (China). China has big EV incentives from the government and the local marketheavily favorsChinese companies. Nonetheless, BYD deserves huge credit for leading that market — and, again, one has to wonder where the Chinese EV market (or incentives) would be without BYD’s leadership.

“BYD is the leading make for plug-in vehicles in China, with nearly 30% share of plug-in sales there. With high volume sales of their 2 PHEVs (Qin, Tang) and 4 EVs (EV300, e5, e6, Denza), BYD reached 102,500sales in 2016, making it the world’s largest OEM for plug-in passenger cars SUVs.”

The next thing that jumps out, however, is that companies #3 and #4 are European companies that have heavily focused on plug-in hybrids withquite small batteries and electric driving range (Volkswagen and BMW). These cars have been pretty strongly incentivized in certain European countries, and they may be a good transition approach —offering electric range for the city but gas backup for longer trips. However,the approach and the resultsmake me wonder if the companies aren’t being too cynical about what theycould have achieved in Europe and elsewhere if they had focused more on fully electric models or models designed electric from the ground up (not simply converted from a gasoline-based model). Nissan, despite havinga much smaller global brand, was right behind BMW and Volkswagen with a pure-EV focus built electric from the ground up.

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