EV Trends for China, Europe, US Analysis & Opportunities.
The automotive sector is transforming significantly due to the electric vehicle (EV) revolution. We will examine the current electric light-duty vehicle trends in important locations that have shaped the EV landscape in this post. China, Europe, and the US dominate electric vehicle adoption in 2022. These areas’ amazing progress, problems, and opportunities for electric cars will be explored.
Leading the Charge
China is the world leader in EV adoption. China sold 4.4 million Battery Electric Vehicles (BEVs) in 2022, up 60% from 2021. Nearly quadrupled PHEV sales to 1.5 million cars. This rise is notable given that Chinese automobile sales fell 3% in 2022 compared to 2021.
China’s electric car success is due to decade-long governmental assistance. This includes extending purchase subsidies beyond 2020 owing to the COVID-19 epidemic, rapidly expanding charging infrastructure, and strict non-electric car registration restrictions. Thus, China account for approximately 60% of worldwide electric vehicle registrations and met its 2025 New Energy Vehicle (NEV) market share objective of 20% ahead of schedule. EV adoption has also been helped by Chinese provincial governments. Shenzhen and Guangzhou want 60% and 50% NEV sales shares by 2025.
China is the world leader in EV adoption. China sold 4.4 million Battery Electric Vehicles (BEVs) in 2022, up 60% from 2021. Nearly quadrupled PHEV sales to 1.5 million cars. This rise is notable given that Chinese automobile sales fell 3% in 2022 compared to 2021.
China’s electric car success is due to decade-long governmental assistance. This includes extending purchase subsidies beyond 2020 owing to the COVID-19 epidemic, rapidly expanding charging infrastructure, and strict non-electric car registration restrictions. Thus, China account for approximately 60% of worldwide electric vehicle registrations and met its 2025 New Energy Vehicle (NEV) market share objective of 20% ahead of schedule. EV adoption has also been helped by Chinese provincial governments. Shenzhen and Guangzhou want 60% and 50% NEV sales shares by 2025.
Steady Growth Despite Disruption
In 2022, Europe’s second-largest electric car market sold 2.7 million units, up 15% from 2021. While slower than in prior years, electric vehicle sales increased in 2020 and 2021 due to manufacturers meeting higher CO2 emission criteria.
Europe sold 25% of electric cars worldwide in 2022, led by Norway, Sweden, the Netherlands, Germany, the UK, and France. Germany was the biggest European market in 2022, selling 830,000 units.
Policy changes under the ‘Fit for 55’ package should promote European EV sales. Significant policy improvements include stricter 2030-2034 CO2 emission regulations and a 2035 objective of 100% CO2 reduction for new automobiles and vans.
In 2022, Europe’s second-largest electric car market sold 2.7 million units, up 15% from 2021. While slower than in prior years, electric vehicle sales increased in 2020 and 2021 due to manufacturers meeting higher CO2 emission criteria.
Europe sold 25% of electric cars worldwide in 2022, led by Norway, Sweden, the Netherlands, Germany, the UK, and France. Germany was the biggest European market in 2022, selling 830,000 units.
Policy changes under the ‘Fit for 55’ package should promote European EV sales. Significant policy improvements include stricter 2030-2034 CO2 emission regulations and a 2035 objective of 100% CO2 reduction for new automobiles and vans.
A Return to Growth
BEVs drove 55% US electric vehicle sales growth in 2022 compared to 2021. BEV sales rose 70% to 800,000 units. PHEV sales climbed 15% slower. This rise is noteworthy considering that 2022 automobile sales fell 8% from 2021.
The US saw considerable development due to government incentives, a greater selection of EV models outside Tesla, and customer awareness. The Inflation Reduction Act (IRA) encouraged global electromobility businesses to expand production in North America, accelerating growth.
BEVs drove 55% US electric vehicle sales growth in 2022 compared to 2021. BEV sales rose 70% to 800,000 units. PHEV sales climbed 15% slower. This rise is noteworthy considering that 2022 automobile sales fell 8% from 2021.
The US saw considerable development due to government incentives, a greater selection of EV models outside Tesla, and customer awareness. The Inflation Reduction Act (IRA) encouraged global electromobility businesses to expand production in North America, accelerating growth.
The Outlook for 2023: Bright Prospects
The Outlook for 2023: Bright Prospects
First quarter 2023 data imply a strong year for electric automobiles. In 2023, over 14 million electric automobiles will be marketed worldwide, up 35% from 2022. This would increase worldwide electric sales to 18% from 14% in 2022.
Electric vehicle sales in the US are predicted to reach 1.5 million in 2023, accounting for 12% of total automobile sales. Despite a poor start in 2023, China is expected to sell 8 million devices with a market share around 35%.
Despite Europe’s weakest growth, electric vehicle sales are predicted to rise by almost 25% in 2023, with one in four cars sold being electric.
The Rise of Electric SUVs and the Decline of Conventional Sedans
The number of electric vehicle (EV) models has increased, notably in SUV and big car sectors. China has approximately 300 EVs, whereas Europe has several. United States market is booming yet has space for development. Canada, Japan, and South Korea have less EVs.
EVs are developing, yet they still lag behind ICE automobiles. ICE alternatives are declining as manufacturers concentrate on EVs. However, EV models are fast expanding as manufacturers invest in electrification.
The number of electric vehicle (EV) models has increased, notably in SUV and big car sectors. China has approximately 300 EVs, whereas Europe has several. United States market is booming yet has space for development. Canada, Japan, and South Korea have less EVs.
EVs are developing, yet they still lag behind ICE automobiles. ICE alternatives are declining as manufacturers concentrate on EVs. However, EV models are fast expanding as manufacturers invest in electrification.
SUVs and spacious car models are prevalent in both the EV and ICE markets
SUVs and big cars dominate the EV and ICE sectors owing to better earnings, less restrictions, and customer preferences. These bigger models need larger batteries and essential minerals, which raises pricing, sustainability, and supply chain concerns. Transitioning to EVs is vital for net-zero emissions, but bigger batteries’ environmental implications must be addressed.
In 2022, electric SUVs reduced emissions more than ICE SUVs that used oil. ICE and EV SUV sales increased, making up a large share of automobile sales. Large ICE vehicles and SUVs climbed despite a dip in small and medium. SUVs are becoming more popular in EV markets, notably in the US.
China and Europe have several EV SUVs, but smaller, cheaper variants are emerging. Policy reforms in the US are projected to increase electric SUV sales, especially for smaller SUVs under USD 80,000.
SUVs and big cars dominate the EV and ICE sectors owing to better earnings, less restrictions, and customer preferences. These bigger models need larger batteries and essential minerals, which raises pricing, sustainability, and supply chain concerns. Transitioning to EVs is vital for net-zero emissions, but bigger batteries’ environmental implications must be addressed.
In 2022, electric SUVs reduced emissions more than ICE SUVs that used oil. ICE and EV SUV sales increased, making up a large share of automobile sales. Large ICE vehicles and SUVs climbed despite a dip in small and medium. SUVs are becoming more popular in EV markets, notably in the US.
China and Europe have several EV SUVs, but smaller, cheaper variants are emerging. Policy reforms in the US are projected to increase electric SUV sales, especially for smaller SUVs under USD 80,000.
Electric Car are Always Affordable in China
Electric automobiles in China are cheaper than in Europe and the US. In 2022, tiny electric vehicles in China cost less than $10,000, whereas in Europe and the US they cost more than $30,000. The Wuling Mini BEV and BYD Dolphin, China’s best-selling electric vehicles, were under $16,000, fueling demand for smaller variants. Popular compact electric vehicles in Europe and the US cost substantially more.
Chinese automakers have concentrated on smaller, cheaper electric vehicles with government assistance and vertical supply chain integration. Western manufacturers have focused on bigger, more luxury electric cars, restricting mass-market possibilities.
While Western carmakers are introducing cheaper electric choices, China’s advantage in inexpensive electric vehicles may eventually close the price gap with internal combustion engine automobiles.
Electric automobiles in China are cheaper than in Europe and the US. In 2022, tiny electric vehicles in China cost less than $10,000, whereas in Europe and the US they cost more than $30,000. The Wuling Mini BEV and BYD Dolphin, China’s best-selling electric vehicles, were under $16,000, fueling demand for smaller variants. Popular compact electric vehicles in Europe and the US cost substantially more.
Chinese automakers have concentrated on smaller, cheaper electric vehicles with government assistance and vertical supply chain integration. Western manufacturers have focused on bigger, more luxury electric cars, restricting mass-market possibilities.
While Western carmakers are introducing cheaper electric choices, China’s advantage in inexpensive electric vehicles may eventually close the price gap with internal combustion engine automobiles.
Sales of Electric Cars Continues Increasing
Global electric light commercial vehicle (LCV) sales almost quadrupled in 2022 from 2021 to over 310,000 units. This rise is significant despite a 10% LCV sales reduction. Electric LCVs currently have 3.6% of the worldwide market, catching up to electric passenger vehicles. This pattern shows that LCVs and passenger vehicles may share EV sales more in the future.
Commercial vehicle purchasers, who use their cars extensively and value cost savings, are increasingly adopting electric LCVs. BEVs accounted for 98% of electric LCV sales and stock in 2022. BEVs are preferred in commercial operations because to their economic benefits, predictable usage patterns, cheaper maintenance costs, and the rise of low- and zero-emission zones.
Commercial vehicle adoption of electric technology may teach private users about fleet and charging management to overcome range problems.
Global electric light commercial vehicle (LCV) sales almost quadrupled in 2022 from 2021 to over 310,000 units. This rise is significant despite a 10% LCV sales reduction. Electric LCVs currently have 3.6% of the worldwide market, catching up to electric passenger vehicles. This pattern shows that LCVs and passenger vehicles may share EV sales more in the future.
Commercial vehicle purchasers, who use their cars extensively and value cost savings, are increasingly adopting electric LCVs. BEVs accounted for 98% of electric LCV sales and stock in 2022. BEVs are preferred in commercial operations because to their economic benefits, predictable usage patterns, cheaper maintenance costs, and the rise of low- and zero-emission zones.
Commercial vehicle adoption of electric technology may teach private users about fleet and charging management to overcome range problems.
Electric Two-wheeler Sales Dropped in China, but Global
Electric Three-wheeler Sales Remained on the Rise
In 2022, global electric vehicle sales fell 18% to 9.2 million. Even though China’s automotive industry grew, electric vehicle sales decreased from 10.2 million in 2021 to under 7.7 million in 2022, causing this reduction. The electric vehicle market suffered supply chain difficulties from pandemic limitations in China in 2022. Despite sales rise of luxury local and foreign electric vehicles like BMW, Ducati, and others, the market share of electric automobiles fell below 50%. However, China still dominates the worldwide electric vehicle industry with approximately 85% of sales.
Despite rising sales of locally built electric automobiles, Vietnam’s electric car market share dropped with China’s. However, most Asian electric vehicle markets outside of China and Vietnam saw sales increase.
Electric Three-wheeler Sales Remained on the Rise
In 2022, global electric vehicle sales fell 18% to 9.2 million. Even though China’s automotive industry grew, electric vehicle sales decreased from 10.2 million in 2021 to under 7.7 million in 2022, causing this reduction. The electric vehicle market suffered supply chain difficulties from pandemic limitations in China in 2022. Despite sales rise of luxury local and foreign electric vehicles like BMW, Ducati, and others, the market share of electric automobiles fell below 50%. However, China still dominates the worldwide electric vehicle industry with approximately 85% of sales.
Despite rising sales of locally built electric automobiles, Vietnam’s electric car market share dropped with China’s. However, most Asian electric vehicle markets outside of China and Vietnam saw sales increase.
India Excels in Electric Three-Wheeler Sales
India topped the worldwide electric three-wheeler market in 2022 with 425,000 sales. These cars are popular because to government incentives, reduced lifespan costs, and increasing gasoline prices. Over half of 2022’s Indian three-wheeler registrations were electric. Government incentives, tax perks, and the “Go Electric” campaign have reduced upfront expenses. EV legislation in 15 Indian states have also increased electric three-wheeler sales.
China sold about 350,000 electric three-wheelers in 2022. India and China sold over 99% of electric three-wheelers worldwide.
India topped the worldwide electric three-wheeler market in 2022 with 425,000 sales. These cars are popular because to government incentives, reduced lifespan costs, and increasing gasoline prices. Over half of 2022’s Indian three-wheeler registrations were electric. Government incentives, tax perks, and the “Go Electric” campaign have reduced upfront expenses. EV legislation in 15 Indian states have also increased electric three-wheeler sales.
China sold about 350,000 electric three-wheelers in 2022. India and China sold over 99% of electric three-wheelers worldwide.
We Make Groundbreaking Motor Designs That Set Industry Standards
Korea Maintains its Forefront Position in the Expansion of Fuel-cell Electric Cars
Fuel cell electric cars (FCEVs) increased 40% to over 72,000 in 2022. The majority of FCEVs were automobiles (80%), followed by lorries (10%) and buses (10%). The fuel cell truck category grew 60% faster.
Korea dominates the FCEV market with over half of the automobiles. Two-thirds of the 15,000 new fuel cell vehicles in 2022 were in Korea, thanks to Hyundai’s supporting policies that made it the dominant carmaker.
The US has the second-largest FCEV stock, with 15,000 units, mostly fuel cell vehicles and 200 fuel cell buses. In 2022, US FCEV stocks grew by over 20%, compared to China’s 60% increase despite China being the third-largest FCEV stock.
Historically, China dominated heavy-duty fuel cell vehicles including trucks and buses. China has over 95% of the worldwide fuel cell truck fleet and approximately 85% of the bus fleet in 2022. In 2022, China added approximately 200 fuel cell automobiles to its FCEV fleet, a change from buses and trucks. [8]
Fuel cell electric cars (FCEVs) increased 40% to over 72,000 in 2022. The majority of FCEVs were automobiles (80%), followed by lorries (10%) and buses (10%). The fuel cell truck category grew 60% faster.
Korea dominates the FCEV market with over half of the automobiles. Two-thirds of the 15,000 new fuel cell vehicles in 2022 were in Korea, thanks to Hyundai’s supporting policies that made it the dominant carmaker.
The US has the second-largest FCEV stock, with 15,000 units, mostly fuel cell vehicles and 200 fuel cell buses. In 2022, US FCEV stocks grew by over 20%, compared to China’s 60% increase despite China being the third-largest FCEV stock.
Historically, China dominated heavy-duty fuel cell vehicles including trucks and buses. China has over 95% of the worldwide fuel cell truck fleet and approximately 85% of the bus fleet in 2022. In 2022, China added approximately 200 fuel cell automobiles to its FCEV fleet, a change from buses and trucks. [8]
Regarding the Differentiation between Vehicle Registrations and Vehicle Sales
The difference between car registrations and sales is crucial for market analysis. Registrations are legally registered automobiles, whereas sales are dealer or manufacturer sales. This report maintains worldwide uniformity using registrations or retail sales, not manufacturing shipments. In 2022, factory shipments (sales) rose while registrations stagnated in China. Choosing the appropriate metric is crucial. In 2021 and 2022, passenger automobile exports and imports and commercial vehicle sales differed.
Emerging Markets are Experiencing Promising Growth
Emerging Markets are Experiencing Promising Growth
China, Europe, and the US led the global electric vehicle market with 95% share in 2022, whereas developing nations outside China had low sales owing to expensive prices and poor charging infrastructure. Many individuals in these markets want electric cars but won’t pay more than $20,000. Limited charging and maintenance services are available. These locations prefer two- and three-wheelers and shared transportation.
Indian BEV sales doubled in 2022, driving over 80,000 electric vehicle sales in Thailand, Indonesia, and India. With over 85% of BEV sales, Tata drove this rise. A $2 billion government subsidy for the Production Linked Incentive (PLI) plan attracted $8.3 billion in investments.
The Indian market still prioritizes shared and smaller mobility, with 25% of electric vehicle sales by fleet operators. Ola, India’s biggest EV firm, wants to produce 10 million two-wheelers by 2028. Ola will spend $900 million in Southern India battery and EV manufacture to electrify its taxi fleet by 2029.