New Delhi,   Global passenger electric vehicle (EV) sales grew 61 per cent (on-year) to reach 2.18 million units in the second quarter this year, a new report said on Monday, as for the first time, China's BYD Auto became the top-selling EV brand, dethroning Elon Musk-run Tesla.

During Q2, BYD Auto shipped more than 354,000 EV units, an increase of 266 per cent YoY.

Tesla's global sales grew 27 per cent YoY to over 254,000 units, falling short of expectations.

Although business in the US increased, Tesla's China business was affected by Covid-19 shutdowns.

In total EV sales, battery electric vehicles (BEVs) accounted for almost 72 per cent and plug-in hybrid electric vehicles (PHEVs) for the rest, according to Counterpoint Research.

China remained the market leader in EV sales, followed by Europe and the US.

China's EV sales increased by almost 92 per cent YoY to reach 1.24 million units from just 0.64 million units in Q2 2021.

"As the global semiconductor shortage has eased a bit, automakers are able to cater to the increasing demand for EVs. Moreover, EV sales would have been higher if China had not experienced fresh Covid-19 outbreaks during March," said senior analyst Soumen Mandal.

The second half of 2022 is expected to deliver better results, but economic downturns, energy crisis, supply chain bottlenecks and rising geopolitical tensions may hinder the growth of China's automotive market, especially EVs, he mentioned.

BMW's EV sales during Q2 increased by 18 per cent YoY. The BMW X3 and i-series models are spearheading the company's push in the BEV segment, while the 5-Series, 3-Series and X5 models are doing the same in the PHEV segment.

"Incentives play a crucial role in increasing EV adoption. For example, China's strong incentive program for both automakers and consumers has helped the country become the global EV leader," said Research Vice President Neil Shah.

"Apart from big markets, smaller markets like India, Japan, Thailand, South Korea and Malaysia have started providing various benefits for EV buyers and automakers either directly as a rebate in prices or tax exemption," he added.