Global EV car sales to cross 14 million in 2023, up 40%

Global sales of electric cars are expected to cross 14 million by the end of 2023, representing a 40% year-on-year increase from the 10 million EVs sold in 2022. A total of 14% of all new cars sold were electric in 2022, up from around 9% in 2021 and less than 5% in 2020. Global spending on electric cars exceeded $425 billion in 2022, with a 50% growth over 2021, says the International Energy Association (IEA).

Over 2.3 million electric cars were sold globally in the first quarter of 2023, about 25% more than in the same period last year. Electric cars could account for 18% of total car sales across the full calendar year, says the IEA's study report 'Global EV Outlook 2023' .

China, which accounts for around 60% of global electric car sales and more than half of the electric cars on roads worldwide, has already exceeded its 2025 target for new energy vehicle sales. In Europe, the second largest market, electric car sales increased by over 15% in 2022, meaning that more than one in every five cars sold was electric. Electric car sales in the United States – the third largest market – increased 55% in 2022, reaching a sales share of 8%.

Observing that electric car sales are generally low outside the major markets, the report mentions India, Thailand and Indonesia as the emerging markets. Collectively, the sales of electric cars in these countries more than tripled in 2022, reaching 80 000, compared to 2021. For Thailand, the share of electric cars in total sales came in at slightly over 3% in 2022, while both India and Indonesia averaged around 1.5% last year. In India, EV and component manufacturing is ramping up, supported by the government’s $3.2 billion incentive programme that has attracted investments totalling $8.3 billion, says the report.

While global sales will increase by 35%, China will retain its position as the largest market for electric cars with 40% of total sales by 2030. The United States will double its market share to 20% by the end of the decade and Europe will retain its current 25% share by 2030, predicts the IEA Outlook.

The number of available electric car models reached 500 in 2022, more than double the options available in 2018. However, outside of China, there is a need for original equipment manufacturers (OEMs) to offer affordable, competitively priced options in order to enable mass adoption of EVs, says IEA.

It also says electric light commercial vehicle (LCV) sales worldwide increased by more than 90% in 2022 to more than 310 000 vehicles, even as overall LCV sales declined by nearly 15%. In 2022, nearly 66 000 electric buses and 60 000 medium-and heavy-duty trucks were sold worldwide, representing about 4.5% of all bus sales and 1.2% of truck sales. In 2022, around 220 electric heavy-duty vehicle models entered the market, bringing the total to over 800 models offered by well over 100 OEMs.

In 2022, 35% of exported electric cars came from China, compared with 25% in 2021. Europe is China’s largest trade partner for both electric cars and their batteries. In 2022, the share of electric cars manufactured in China and sold in the European market increased to 16%, up from about 11% in 2021, says IEA.