Global EV production & sales grow with China and US leading

This trend contrasts sharply with the European automotive powerhouses. Germany, the third-largest EV producer globally, sees only 32% of its electric vehicles sold domestically. Similarly, other key European nations like South Korea, Japan, France, and Spain export the majority of their EV-produced vehicles. Spain, in particular, stands out, with only 5% of its EVs sold within its borders.

In terms of sales, after China and the United States, Germany ranks third in the global EV market. The United Kingdom emerges as the fourth-largest market for electric vehicles. With limited domestic production capabilities, the UK heavily relies on imports, with 92% of its new EVs being sourced from overseas.

The report also sheds light on the burgeoning growth in the electric vehicle sector. China’s EV market, which developed slightly after the EU’s, has seen rapid expansion, with its market share doubling from 2021 to mid-2023, reaching nearly 32%. This growth has been primarily driven by national pilot programs, incentives, and regulations, particularly the new energy vehicle (NEV) mandate for car manufacturers.

The United States is not far behind, with its EV market increasing by 52% in 2022 over 2021 and another 25% in the first half of 2023. Interestingly, the market share of Plug-in Hybrid Electric Vehicles (PHEVs) in the US is comparatively smaller, making up just 19% of new EVs, as opposed to a 34% share in Europe.

The European Union, although a pioneer in promoting electric vehicles, is now facing challenges. The report indicates a leveling off in the market share of plug-in hybrids and battery electric passenger cars. This trend, which saw a slight drop to 20% in the first half of 2023, is attributed to factors such as higher inflation and the phase-out of purchase subsidies in key markets like Germany.

India’s EV market, though still in its infancy, is showing signs of potential exponential growth. With just over 2% of new vehicles being electric by mid-2023, there’s an 82% increase over the end of 2022, signaling that a significant market boom may be on the horizon.

The ICCT’s report underscores the dynamic nature of the global EV market. As countries continue to grapple with environmental concerns and the push towards sustainable transportation, the role of electric vehicles is becoming increasingly central. The shifting landscape of production and sales across various regions highlights the complex interplay of policy, consumer preference, and technological advancements in shaping the future of the automotive industry.

Source: European Vehicle Market Statistics Pocketbook | The ICCT