Overview of the global electric vehicles market

Overview of the global electric vehicles market

The electric vehicles (EV) market is developing dynamically despite the constant challenges along the way. In 2012 about 130 thousand electric cars were sold worldwide, in 2021 this figure reached 6.6 million cars. From 2019 to 2021, the share of electric cars in total car sales increased from 2.5% to almost 9% despite the pandemic, supply chain disruptions, and rising prices of critical materials.

Therefore, the EV market has increased its sales opportunities 3 times in the last 3 years. China is the EV market leader and its largest player. The country is rich in critical materials for both car and battery production, has several domestic manufacturers, developed related industries and the largest domestic market in the world. In 2021, more electric vehicles (3.4 million cars) were sold in China than in the whole world in 2020. This growth trend is expected to continue in 2022 (about 1.4 million cars in the first 4 months of 2022). This is the result of a successful combination of business and government decisions. Manufacturers have introduced successful new models, and the state subsidy system.

In Europe, there was a slight decline in sales growth, but still the number of electric vehicles sold increased by 70% in 2021 (yoy), reaching 2.3 million units. At the same time, in December, electric cars surpassed diesel cars in sales for the first time, their share reached about 21% of all cars sold. The leaders here are: Norway – more than 72% of cars sold are electric cars; Sweden – 45%; The Netherlands – 30%. The US electric car market is also growing, almost doubling sales in 2021 (about 500,000 cars). Currently, the share of electric vehicles is 4.5% of total sales, which is twice as much as in 2020. In the rest of the world, the EV market is still in its infancy. For example, in Brazil or India, electric vehicles account for less than 2% of total sales. At the same time, the demand for electric scooters and public transport is growing. In Ukraine, in 2021, about 9,000 electric cars were registered, which is 20% more than in 2020. Prior to that, the share in the registration of new cars increased, about 14% of electric cars. Now their total number reaches about 34 thousand cars. In Ukraine, consumer demand is growing and shifting towards environmentally friendly transport.

Factors necessary for the development of the EV industry The state is an important driver of this market. It is the successful incentive tools and the set goals that influence the development of the automotive industry in general. The EU plans to set zero emissions for new cars from 2035. The United States has set a goal of 50% of electric vehicles in total sales by 2030. Of course, to achieve such a goal, development of the related infrastructure should go alongside.

The current sales momentum can only be maintained if an increasing part of the population has access to a convenient and affordable charging infrastructure. Governments should encourage investment in this sector by minimizing all market and non-market barriers to the deployment of electric vehicle infrastructure. Governments should also stimulate the development of supply chains that secure battery production processes. It is well-established supply chains and close regional cooperation that will be decisive factors for the development of the industry.

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