In the fourth quarter of 2024, over 365,800 battery-electric vehicles were sold in the United States. This was a year-over-year increase of around 15.2 percent compared to the sales recorded in the fourth quarter of 2023. The fourth quarter of 2024 also recorded a hike in sales compared to the third quarter of that same year, making it the best quarter for BEV sales in the country across the past two years. Global EV Race - Where does the U.S. stand? Over the last few years, consumers have perceived Electric Vehicles (EVs) as a far more appealing option due to their increased range, battery life, variety of models, and affordability. Therefore, the EV market has grown fast in recent years and is forecast to expand to 1.1 trillion U.S. dollars in 2029. Though the global demand for electric cars has been escalating, American sales lag behind Europe and the Asia-Pacific regions. In 2023, Chinese customers bought around 8.1 million plug-in EVs, considerably more than American customers' purchases,around 1.4 million that year. China is the leader of the global EV race, with a substantial 36 percent growth in sales year-on-year in 2023. However, given the market share of electric vehicles in the global automotive industry, this still can be anyone's race. Outlook of the U.S. market There is still a lack of interest in electric vehicles among American buyers compared to European and Asian consumers. In the first quarter of 2021, the share of the battery electric vehicle was 55.1 percentage points more in Norway than in the U.S.. One of the main reasons is that American consumers still anticipate that EVs are more expensive than gasoline vehicles and diesel internal combustion engine cars (ICE). This perception is partially true in the U.S. since the battery production market is highly concentrated in Asia, where the companies have logistical advantages, leading automotive makers to offer better prices. On the other hand, high licensing fees for electric vehicles are another factor affecting the consumption behaviors of automobile purchasers. In many states, the licensing fees for electric cars are considerably higher than their ICE counterparts. EV licensing fees were around 345 U.S. dollars compared to 25 U.S. dollars for standard vehicles in Georgia in 2021. Together, these factors significantly impact the individual perception of electric cars in the United States.

In the financial year of 2024, two-wheelers led the electric vehicle market in India, with sales reaching approximately one million units. This represented a substantial growth compared to the sales figures from the previous year. Meanwhile, the sales of four-wheeler electric vehicles stood at around 99 thousand for the same period. Notably, all sectors of the electric vehicle market witnessed significant growth that year. Electric vehicle market The market projection for electric vehicles (EVs) in India is promising, with a significant increase in sales volume expected in the coming years. In the passenger vehicle segment, Tata Motors has carved out a substantial market share. Meanwhile, Ola Electric is leading the charge in the two-wheeler EV segment. However, the share of EV sales in total vehicle sales in India, while growing, is still relatively small. This points to a gradual yet steady shift towards EV adoption across various vehicle segments in the country. Challenges in EV adoption With the growing environmental concerns, the acceptance of EVs is on the rise in India, with the willingness to invest in sustainable modes of transportation. However, this transition is not without challenges. Concerns about the availability of public charging infrastructure and the safety of battery technology are prevalent. Addressing these issues will be crucial in accelerating the adoption of EVs in the country.

Around 740,800 electric vehicles were sold throughout Europe in the second quarter of 2024. This sales volume includes sales of battery electric vehicles (BEV) and plug-in hybrid electric vehicles (PHEV). Europe is one of the leading markets for plug-in vehicle sales worldwide. EV popularity and regional mandates keep the market growing The European plug-in electric vehicle (PEV) market had grown by 17 percent year-over-year between 2022 and 2023 and regional and governmental targets could propel sales even further. In June 2022, a European Parliament vote mandated that all new cars and vans sold in the European Union should be zero-emission vehicles by 2035 as part of an ongoing goal to reduce European transport emissions. Road transport, including passenger cars, made up most of the European Union’s transport sector carbon dioxide emissions in 2022, amounting to around 73.2 percent of the emissions. That same year, the use of electric vehicles in Europe displaced the equivalent of 6.1 billion liters of gasoline, making a dent in the region’s motor fuel consumption. The benefits of electric cars still depend on consumers’ perception of EVs. Charging infrastructure access impacts consumers’ perception Over half of the consumers in the European Union reported intending to purchase a hybrid or electric vehicle in a survey from the third quarter of 2022, a share which dipped to 49 percent in rural areas, where charging infrastructure is less accessible. Various factors can still make PEVs an inaccessible option for potential buyers. German consumers’ leading concerns regarding BEVs were their driving range, their cost, and the lack of charger at home. The rise in electric vehicle usage requires changes to the transport infrastructure, including a sufficient number of publicly available electric vehicle charging stations. Around 755,800 such charging stations were spread across Europe as of 2023. However, while the number of charging stations has increased, European countries still struggle to expand their network. There were under three charging locations per 100 kilometers of roadway in Germany, France, Spain, and Italy as of July 2021.

Cars with an electrified engine are tipped to account for just under one-fourth of the global market by 2025. It is estimated that pure battery electric vehicles will account for about 7.4 percent of worldwide car sales.
Internal combustion engines are set to lose market share
It is expected that the market share of conventional internal combustion engines will shrink to about 20 percent by 2050, while electric vehicles are projected to account for eight out of ten vehicle sales. Growth in pure battery electric vehicles’ market share shows consumer preference set on fully electric cars. Overall, rising popularity of electrified vehicles could prove vital in carbon dioxide mitigation. Electrified vehicles include cars that may use an electric motor when less power is needed and the main engine could be switched off.

Electrified vehicles are increasingly becoming more competitive
Hybrids have been preferred over battery electric vehicles due to the much larger range of fuel propelled vehicles, but enhanced battery technology of electric vehicle range continues to narrow this gap. Batteries are now also able to power larger cars such as SUVs, enabling new demographics to be targeted.

Electric vehicles amounted to nearly 16 percent of global passenger car sales in 2023, which was a rise of around 2.8 percentage points year-over-year. Electric vehicle sales have rapidly increased since 2017, when they rose above one percent of the market, and have particularly accelerated since 2020. Many consumers started looking for more sustainable transportation methods amid the COVID-19 pandemic due to increased environmental consciousness. This contributed to the EV market expansion worldwide. A market driven by innovation Various factors contribute to the rapid growth of the electric vehicle market, including consumer perception, governmental targets, and investments in technological innovation. Regional institutions and national governments are committing to policies supporting electric vehicle adoption worldwide, with around 97 percent of the light-duty vehicle market comprising countries with these policies. Governmental spending on electric cars reached around 45 billion current U.S. dollars in 2022, the steepest increase recorded in the past five years, and global automakers are also allocating part of their revenue toward research and development expenses. Challenges and opportunities for EV charging Electric vehicle charging was the second technology type receiving the most early and growth-stage venture capital investments in 2023, above electric vars and electric two-wheelers. In 2023, there were around 11 electric vehicles per charging point worldwide, and access to this infrastructure was unequal, with China boasting the largest electric vehicle supply equipment network. Slow chargers, typically alternating current, were also the most common charging type, creating opportunities for the development of fast charging across the globe.

Battery-electric vehicle sales reached an estimated 10 million in 2023, up from around 7.7 million in 2022. BEV sales have soared due a number of factors, including an increased consumer interest in more sustainable transport and governmental regulations to curb direct transport emissions. In 2021, these sales more than doubled compared to 2020, and 2023 marks a new record in all-electric sales volume.

China was the largest market for plug-in electric vehicle sale worldwide in 2023, with around 8.1 million sales recorded that year. Europe was second in the ranking, with around 3.2 million electric vehicles sold that same year.

In 2023, China experienced the most electric car sales throughout the Asia-Pacific region, with over eight million electric cars sold. Comparatively, approximately 38 thousand electric cars were sold in New Zealand in 2023.

BYD overtook Tesla as the best-selling electric vehicle brand in 2022 and maintained its position in the ranking through 2024. That year, BYD sold nearly 4.1 million plug-in electric vehicles globally. Tesla and Wuling completed the top three brands that year, with Tesla reporting some 1.79 million sales. BYD is also the leading manufacturer of electric vehicles in China, based on sales. European brands charge ahead in electric car sales With Europe-based brands Volkswagen, BMW, and Mercedes all impressively ranked in the plug-in electric vehicle (PEV) market, there is no doubt that Europe's incumbent automakers are ready to zoom past rivals when it comes to electric mobility. Volatility in the market has, however, come to light in 2020 following the coronavirus outbreak, as international auto sales contracted by around 15 percent and plummeted to around 64 million units. The global automotive chip shortage, accelerated by the pandemic, further contributed to challenges in the market throughout 2021 and 2022. The European electric vehicle market has been growing through these challenges, with plug-in electric vehicle sales representing nearly 23 percent of the 2024 European passenger car sales. Fueling a green future With climate change still a hot topic of conversation across the globe, the adoption of fuel-cell electric vehicles (FCEV), which emit only water vapor into the environment, as well as hybrids, plug-in hybrids, and battery electric vehicles is becoming ever more enticing. Green transportation-related patent applications worldwide represented close to a quarter of all green patents filed in 2020.

Between 2023 and 2029, the size of the global electric vehicle market is expected to increase from 769.4 billion U.S. dollars to reach an estimated global market size of some 1.08 trillion U.S. dollars by 2028. Driving for electrification Electric vehicles (EVs) have become a much more attractive choice to consumers in recent years thanks to increased range, battery life, efficiency, and affordability. EVs have taken the automotive market in northern European states by storm, and sales figures in China have also been on the rise. Electric vehicles are seen as the future in China, with market size and demand continuously growing, and it is expected that electric vehicles will make up between 25 and 50 percent of the country’s passenger vehicle market by 2025. Widespread adoption in Norway As of 2022, however, it is Norway that has the largest share of electric vehicles in its fleet: such automobiles represented the majority of new registrations in 2022. Electric vehicles are so popular in Norway in part because of strong incentives put forward by the government, but also because of the availability of charging ports. The widespread availability of charging outlets is paramount in making electric vehicles a viable option for car users.

Around 550,100 battery electric vehicles were sold in the Americas in 2021, according to data provided by EV-Volumes. This was a year-on-year rise of almost 86 percent. The battery electric vehicle sales in the region made up just over eight percent of the total plug-in electric vehicle sales worldwide.

This statistic represents electric vehicle sales in Europe, China, and the United States in 2030, categorized by segment. It is estimated that European battery electric vehicle sales will amount to around 2.9 million units in 2030.

The Tesla Model Y was the world’s most popular plug-in electric vehicle with worldwide unit sales of roughly 1.2 million in 2024. That year, deliveries of Tesla's Model 3 and Model Y stood at around 1.68 million. Competition increases in electric vehicle manufacturing While two out of the five best-selling plug-in electric vehicle (PEV) models were Tesla-branded, the battery electric vehicle manufacturer faced competition from Asian brands in 2022. China-based BYD overtook Tesla as the best-selling PEV brand that year, relying on a large offering of plug-in hybrid electric models. BYD has since maintained its position as market leader through 2024. No European models made it to the top ten that year. Technology drives automotive electrification Electric vehicles are growing in popularity. Consumers have become more interested in plug-in electric vehicles following important technological developments. Technology has significantly increased the range of electric vehicles and public charging infrastructure, meaning that plug-in vehicles are becoming more accessible and practical. However, while technological advances have contributed to the success of the market, the lack of public awareness surrounding electric vehicles, the lack of charging infrastructure and concerns surrounding the cost of battery replacement could lower demand.

Tesla's Model Y was the best-selling electric vehicle in Finland in 2023. The American model had over 2,400 new registrations more than Škoda's Enyaq, which was second in the ranking. Volvo's XC60, which came third that year, was the first plug-in hybrid electric model of the list.

Around 6.3 billion electric vehicles are forecast to be sold in Europe in 2025, representing a significant increase in the sales volume of electric vehicles across the region in 2019. A similar story is projected in China: sales in 2025 will be almost double the number of electric vehicles currently in use across the country.

More miles, more smiles Growing demand from consumers is among the reasons why electric vehicle sales are expected to surge globally over the next few years. They are becoming a more attractive option because of an increased range: only a small number of electric vehicles currently have a range of around 236 miles (380 kilometers), but this is projected to be the average distance of electric vehicles in 2025.

China’s electric car boom In recent years, quarterly sales of electric vehicles in China have exceeded those of the rest of the world, and this trend looks set to continue with China projected to produce double the amount of electric cars than the next ranked country in 2021. The projected success of the Chinese market is one reason why the size of the global market for electric vehicles in 2025 is estimated to be around five times bigger than in 2017.

About 4.2 million new plug-in hybrid electric cars sales were sold worldwide in 2023. Plug-in hybrid electric vehicle (PHEV) sales accounted for around 29.6 percent of electric vehicle sales in 2023. Meanwhile, battery electric vehicles accounted for most of the global sales that same year.

In the first half of 2021, 8,688 electric vehicles were sold in Australia. Despite the global coronavirus pandemic, electric vehicle sales had been surprisingly resilient amidst new vehicle sales in general. Australia was among the leading Asia-Pacific countries with a high adoption rate of electric vehicles, valuing to almost three percent in 2021.

The electric vehicle market of Australia

Across the Asia-Pacific region, the revenue of the electric vehicle market of Australia had ranked fourth in 2021, with a value of above 600 million U.S. dollars. It was also predicted that in the same year the revenue of Automotive Electrical Component Manufacturing in Australia will amount to approximately one billion Australian dollars. The revenue of Automotive Electrical Component Manufacturing was forecasted to grow constantly over the coming years.

Worldwide growth of battery electric vehicles

Globally in 2021, the best-selling battery electric vehicle manufacturer was Tesla. It had sold 936,200 battery electric vehicle worldwide. With an increase in the sale of battery electric vehicles worldwide, it was estimated in 2021 that the electric vehicle battery re-use and recycling market will rise above eight billion U.S. dollars by 2026.

This statistic represents the number of electric vehicles sold in selected U.S. federal states in 2018. About 153,440 such vehicles were sold to customers in California, making it the best performing state in terms of electric vehicle sales.

In 2023, Argentina recorded a growth of over 20 percent the amount of electric vehicle sales in 2022. Most of these vehicles were hybrid electric cars, of which nearly 9,000 units were sold. Plug-in electric vehicles have also gained in popularity, with 374 battery-electric vehicle sales in 2022.

The market share of electric vehicles is growing rapidly: by 2030, one in four new cars sold will be battery-powered. It is projected that this figure will increase to over 80 percent by 2050. Electric vehicles are tipped to account for almost 70 percent of the global car parc by 2050.