As per the 2023 report by International Energy Agency (IEA), almost one in five cars sold worldwide this year will be electric vehicles.
In 2022, 14% of all new cars sold were electric, a considerable rise from 2021, when it was around 9% and less than 5% in 2020.
Global sales crossed the 10 million mark for the first time in 2022, where China remains the market leader accounting for around 60% of global electric car sales, followed by Europe, where electric car sales increased by over 15%, and USA, where the sales increased by 55% in 2022.
This electric vehicle segment growth will not stop; IEA predicts 14 million in sales by the end of 2023, representing a 35% year-on-year increase.
With the conducive government policies in other countries, the demand for electric cars could account for 18% of total car sales in 2023. In India, the government made a US $ 3.2 billion incentive program that has attracted investments totaling USD 8.3 billion, propelling domestic electric vehicles and component manufacturing. Similarly, Thailand and Indonesia are also strengthening their policy support schemes.
The European Union adopted new CO2 standards for cars and vans aligned with the 2030 goals in the Fit for 55 packages. In the United States, the Inflation Reduction Act (IRA), combined with several states’ adoption of California’s Advanced Clean Cars II rule, could deliver a 50% market share for electric cars in 2030, in line with the national target.
Furthermore, IEA also mentions that electric vehicle companies have consistently outperformed on the stock exchanges compared to traditional carmakers since 2019. Venture capital investments in start-up firms developing EV-related components have also increased, reaching nearly USD 2.1 billion in 2022, up 30% relative to 2021, with investments increasing in batteries and critical minerals.
Smaller EV Segments
The demand for two and three-wheelers segment is also rising fast. This is particularly applicable in emerging markets and developing economies. In India, over half of the three-wheeler registrations in 2022 were electric. In many developing economies, electric two-wheelers and three-wheelers offer an affordable way to access mobility, considering the higher fuel prices.
In 2022, nearly 66 000 electric buses and 60 000 medium- and heavy-duty trucks were sold worldwide, representing about 4.5% of all bus and 1.2% of truck sales.