DETROIT — The global market for electric vehicles (EVs) experienced significant growth over the past year, fueled largely by strong demand in China, alongside advancements in various European countries and the United States, despite facing certain challenges.
In a remarkable achievement for China, the largest automobile market worldwide, electric vehicles comprised 50% of new car sales as of July. This impressive figure includes both fully battery-operated EVs and plug-in hybrid vehicles. Companies like BYD from China are gaining remarkable traction on the international stage thanks to their cost-effective electric offerings.
Meanwhile, in Europe and the U.S., electric vehicles are also gaining popularity. However, there are concerns about future purchase incentives, especially with the anticipated changes in the U.S. political landscape in 2025 potentially affecting support for EV subsidies. Despite this uncertainty, consumers demonstrate a keen interest in new models that offer longer ranges, superior performance, and more affordable pricing.
The shift towards electric vehicles is crucial for the transition to cleaner energy sources. According to the International Energy Agency, road transport is responsible for about one-sixth of global emissions related to energy. The ramp-up of electric vehicle usage is expected to play a significant role in tackling climate change.
Here are five key highlights about the electric vehicle market from this year, largely drawn from consultancy Rho Motion:
**Sales Performance:**
The global electric vehicle market, including both battery electric and plug-in hybrid vehicles, saw a year-over-year growth of 25% by November. An estimated 15.2 million EVs are projected to have been sold globally by year’s end, with the International Energy Agency predicting that one in five cars sold worldwide will be electrified. A significant portion of these sales originated from China.
**Countries with Notable Growth:**
Mexico reported an impressive fivefold increase in EV sales this year, primarily driven by Chinese automaker BYD. Although China showed a 40% increase in sales, its larger population means that it translates into a much more substantial number of vehicles on the road. Notably, the U.K. experienced a year-to-date sales increase of approximately 17%, contrasting with declines seen in France and Germany. Additionally, Turkey recorded a nearly 50% growth, largely spurred by Tesla’s entry into the market last year and local manufacturer Togg increasing its sales. In Norway, which has consistently led in electric vehicle adoption, a striking 90% of new cars sold were EVs.
**Top-Selling Models:**
The Tesla Model Y emerged as the best-selling pure electric vehicle globally, followed closely by the Tesla Model 3, according to Rho Motion’s analysis. The Model Y was launched in 2020 and its base model is currently priced around $45,000. The Model 3, introduced in 2017, has a starting price of approximately $42,000. Both vehicles are eligible for a $7,500 tax credit in the U.S.
**Tesla’s Market Position:**
As of October, Tesla maintained a market share of 17% for electric cars globally, while in the U.S., its share stood at 49%. Although Tesla continues to dominate the EV market, its market share is decreasing as other automakers like GM, Ford, and Honda introduce a wider array of electric vehicles at competitive prices, thereby nibbling away at Tesla’s previously unchallenged lead. Nevertheless, Tesla remains the highest-valued car manufacturer in the world, boasting a market capitalization of $1.4 trillion.
