Electric Vehicle Sales Surge Globally, Led by China and Tesla
The global electric vehicle (EV) market experienced significant growth in 2023, with China, Europe, and the United States driving demand. China reached a milestone in July, with EVs comprising 50% of new car sales, including both pure battery EVs and plug-in hybrids.
According to data from Rho Motion, the global EV market, including pure EVs and plug-in hybrids, grew by 25% year-over-year as of November. The firm estimates that 15.2 million EVs will be sold worldwide by the end of the year. The International Energy Agency predicts that electrified vehicle sales will account for one in five cars sold globally, with China leading the charge.
While China saw a 40% growth year-to-date, other countries also experienced significant increases in EV adoption. Mexico saw a fivefold increase in EV sales, largely driven by Chinese automaker BYD. The UK experienced a 17% increase, while Turkey’s EV market grew by nearly 50%, influenced by Tesla’s market entry and increased sales from domestic manufacturer Togg. Norway maintained its position as a global leader, with 90% of new cars being EVs.
The Tesla Model Y emerged as the best-selling pure electric vehicle globally and in the United States, followed by the Tesla Model 3. The Model Y, released in 2020, starts at nearly $45,000, while the Model 3, introduced in 2017, starts at around $42,000. Both models have been eligible for a $7,500 tax credit in the U.S.
Despite maintaining a strong market position, Tesla’s dominance is facing increased competition. Through October, Tesla held a 17% market share of all-electric cars globally and a 49% share in the U.S. Other automakers, including GM, Ford, and Honda, are expanding their EV offerings, challenging Tesla’s market leadership.
The rapid growth of the EV market is crucial for reducing global emissions from road transport, contributing to climate change mitigation efforts. As more affordable EV options become available and charging infrastructure expands, the trend toward electrification in the automotive industry is expected to continue.
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