Electric Vehicles records for 10% of global auto sales in last year; this could quadruple by 2030
- ByStartupStory | January 17, 2023
While Tesla’s stock is plummeting, the electric vehicle industry appears to have surpassed a key milestone ahead of schedule last year, and it may be poised to exceed even more expectations in the coming decade.
According to preliminary research from the automotive research groups LMC Automotive and EV-Volumes.com, there will be 7.8 million electric vehicles sold worldwide in 2022, a 68% increase from 2021, according to the Wall Street Journal. According to the Wall Street Journal, the increase helped electric vehicles achieve a roughly 10% global market share in the automotive industry for the first time.
While 10% of the total market is a small portion, the industry is growing faster than some predicted. For example, the International Energy Agency predicted in 2021 that it would take until 2030 for the EV industry to reach 7% to 12% of global auto sales.
Europe and China have led the way, where electric vehicles already account for 11% and 19% of total car sales respectively, WSJ reported, citing data from LMC Automotive.
“Last year, every fourth vehicle we sold in China was a plug-in, and this year it will be every third auto,” Ralf Brandstätter, the head of Volkswagen AG’s China business, told WSJ. “We haven’t reached the tipping point yet, but we’re expecting to get there between 2025 and 2030.”
According to more recent projections, the EV market will make even more progress in the coming years.
According to CBInsights Auto and Mobility Trends, its global market share could reach 22% by 2030. BloombergNEF predicted that by the end of the decade, the industry’s market share could reach nearly 40%.
The Biden Administration is aiming for half of US vehicle sales to be electric by 2030, having included a $7,500 tax credit for purchasing an electric vehicle in last year’s Inflation Reduction Act.
Despite these projections, there are signs of EV demand slowing, particularly in the United States.
Tesla, for example, has reduced the price of some of its top models by up to 20% as rising interest rates have discouraged potential buyers.
Softening demand for the global EV market” is also contributing to the price cuts, Simon Moores, CEO of Benchmark Mineral Intelligence, a price reporting agency for the EV supply chain, previously told Insider.
Business leaders have taken notice. In a KPMG survey released late last year of over 900 auto industry executives, the median expectation was for electric vehicles to reach a 37% market share in the US by 2030 — down from 62% in 2021. KPMG attributed the decline to production issues and affordability challenges that could slow EV adoption.
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