EVs and PHEVs Represent Nearly 20% of the World's New Car Sales

The global shift towards greener transportation is accelerating rapidly, as all-electric and plug-in hybrid vehicles now account for almost 20% of the world's new car sales. This monumental milestone clearly indicates a strong and growing demand for cleaner, more sustainable transportation options. As governments worldwide implement ambitious emissions reduction targets, consumers are increasingly embracing electric mobility as a practical and responsible choice. With technological advancements improving the range and affordability of electric vehicles, coupled with an expanding charging infrastructure, it is no surprise that all-electric and plug-in hybrids are rapidly gaining market share. EV and PHEV sales have grown for every region year over year, with an average of 40% increase in sales just in the last year.

According to EV Volumes Data, all-electric car sales were close to 900,000 units in August and represented 13 percent of the total volume alone. Plug-in hybrids are a much smaller segment with some 350,000 units sold (rough estimate). Unsurprisingly, Chinese brands took most of the top spots for specific models sold; BYD was the global sales leader in volume total, but the Tesla Model Y was the best selling model worldwide, beating the BYD Song Plus (which is sold as an EV and PHEV, if just counting EV, it would not even be in the top 10.) Outside the Model Y and Model 3 (ranked 3rd) all other top selling EVs and PHEVs were Chinese.

Why is the Chinese market so ahead in sales? The popularity of EVs in China can be attributed to several crucial factors. Firstly, the Chinese government’s unwavering support for the EV industry has played a pivotal role. With policies such as subsidies, tax incentives, and infrastructure development, the government has created a favorable ecosystem for mass adoption. High taxes for vehicles with larger displacement engines has also played a role. Secondly, concerns over air pollution and the need to shift away from fossil fuel dependence within densely populated urban areas have driven the demand for EVs. China's vast market size and manufacturing capabilities have allowed for economies of scale, resulting in affordable EVs with improved range and advanced technology. Lastly, a proactive approach from automakers, both domestic and foreign, has enabled the production of diverse EV models, appealing to different consumer preferences.