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The electric vehicle market size is projected to grow from 8,151 thousand units in 2022 to reach 39,208 thousand units by 2030, at a CAGR of 21.7%. Factors such as growing demand zero emissions commuting and governments supporting low-emission vehicles through subsidies & tax rebates have led to automakers adopting EVs and the growth of the Electric Vehicle market.
Growing concerns over increased pollution by the automotive industry are the prime reason government bodies are promoting zero-emission vehicles over Petrol or Diesel ones. People have recognized the need for promoting zero-emission vehicles to reduce the increasing pollution. To attract and encourage people to buy EVs, government bodies of different countries are introducing lucrative schemes and incentives that include formidable discounts, lower vehicle acquisition taxes, lower road taxes for zero-emission vehicles, etc.
The demand for RWD EVs has been on the increase across all regions, particularly across Asia Pacific and Europe. This is due to its easier vehicle control and growing demand for these vehicles. North America also has seen faster growth in these vehicles with Tesla Model 3 Standard version, BMW i3, Volkswagen ID4, Porsche Tycan, etc. leading the market. In the coming decade, the growth of RWD EVs will be highest in MEA due to its newer market and mostly across the Asia Pacific. The Wuling Hongguang Mini EV which made a big splash in the EV market in 2020 and 2021 is also an RWD popular across Asia and Europe.
The electric vehicle market for passenger cars is largest in Asia Pacific followed by Europe and North America. In Asia, China, Japan, and South Korea are the countries leading the passenger EV market in the region. This is due to the strong government support for passenger EVs in these countries. Germany, France, Netherlands, Norway, Sweden, the UK, etc. are the top countries in the European region with a growing demand for EV passenger vehicles. These countries have come out with strong emission regulations and a variety of subsidies, grants, and incentives for shifting to EVs.
In 2020, due to these measures, Europe’s EV sales went beyond China’s EV sales, but China sold more EVs in 2021 due to the growing demand of mini-EVs. North America is also increasing EV passenger car demand with various states in US and Canada leading the electrifying trend. MEA countries have started to increase their EV market and are expected to be the fastest-growing market in the coming years.
This report maps the EV market in the Asia Pacific region for China, Japan, South Korea, India, Thailand, Indonesia, Malaysia, and Vietnam. The region is home to some of the fastest-developing economies, such as China and India. The governments of these emerging economies have recognized the growth potential of the electric vehicle market and, hence, have taken different initiatives to attract major OEMs to manufacture electric vehicles in domestic markets. China for instance is investing significantly in the production of both electric passenger as well as commercial vehicles, with export plans. OEMs such as BYD plan to open plants in other parts of the world to manufacture electric buses and electric trucks to meet regional demand. The country supports EV usage by offering a subsidy for buying EVs.
The country is also encouraging manufacturers to develop better EV technology. Various EV charging stations are set up across the country due to the subsidy for setting up EV infrastructure. The country has promoted the development and use of EV buses and trucks. In 2020, a low-cost EV passenger car, Wulin Hongguang Mini EV, was developed in China, costing less than USD 5,000. The vehicle sold majorly in the domestic market, but its gross sales were the second highest of the total EV sales for 2020 and 2021. There was a major growth in the Chinese EV market due to the growing demand for mini EVs in 2021, speeding up the country’s plans to have 20% of all vehicles sold as electric by 2025. According to various official estimates, the EV market share is expected to be around 30-35% of the total vehicle market by 2025.
The electric vehicle market is dominated by established players such as Tesla (US), Volkswagen AG (Germany), SAIC Motors (China), BYD (China), and Stellantis (Netherlands).