Global Electric Vehicle Industry Is Growing Rapidly After 2020
Global electric vehicle sales reached 3 million in 2020, an increase of 40% compared to 2019. This growth coincides with a 16% decrease in overall global car sales as gas-powered vehicle sales declined. Currently, the 10 million electric cars in use worldwide account for approximately 1% of the global car stock, despite a decade of growth since 2010. However, the electric vehicle market share is expected to grow rapidly, reaching 25% by 2025 and 60.9% by 2030.
Battery electric vehicles (BEVs) make up two-thirds of the world's electric vehicle fleet, with China experiencing the fastest growth rate. From 2015 to 2020, the percentage of the global electric vehicle stock held in China increased from 24% to 44.21%, while Europe saw an 87.97% increase and the United States experienced a 77.53% increase. To promote the uptake of electric vehicles, countries have implemented various incentive policies and emission reduction targets.
However, in January 2022, China announced a 30% cut in subsidies on electric cars, which will be eliminated completely by the end of the year, raising concerns about the future of the country's electric vehicle market.
The European Commission has proposed emission reduction targets of -55% for cars and -50% for vans by 2030, as part of the "Fit for 55" initiative. The European Union has been promoting alternative powertrains through additional purchase subsidies and cash-for-clunkers schemes since 2020, and individual countries within Europe continue to implement their own incentives and support measures for electric vehicles.
In the United States, the federal government has set a goal for electric vehicles to account for 50% of new passenger car and light truck sales by 2030. However, there is a significant variation in the growth of EVs across different US states, with California leading the way with 38.9% of the EVs registered nationwide, while New York has only 3.6% (as of August 2022).
Overall, the trend for electric vehicles is showing significant growth, despite still being in the early stages of development. The shift towards electric vehicles is seen as inevitable, with enormous potential to play a key role in achieving global sustainable development. While changes in the global EV industry are expected as the situation evolves, electric cars still have tremendous potential.
References
1. International Energy Agency, “Electric Vehicles”.
2. InsideEVs, “Global Plug-In Electric Car Sales Reached New Record In June 2022: Over 913,000”.
