Carried by a decarbonisation challenge that most leading nations now take seriously and supported by various policies, global EV sales keep accelerating. In 2023, electric cars grabbed a 14% share of all new vehicles sold worldwide, up from 9% in 2021 and less than 5% in 2020.
With the cost of EV batteries continuing to decline, and the upfront retail price of electric cars becoming competitive with those powered by internal combustion engines (ICE), it’s only a matter of time before pricing becomes the main barrier to mass-market adoption.
During the first quarter of this year, EV trends sales jumped by about 25% globally compared with the same period in 2022. EV sales growth was driven by both major markets and emerging and developing economies. The latter typically have comparatively lower costs of capital and household incomes, making them more sensitive to price premiums.
Established automakers have been cutting their EV production targets, while pure-play EV manufacturers plow ahead with expansion plans and launch new models to take an ever-growing share of the world car market. As a result, consolidation is gathering momentum in the EV battery and car manufacturing space.
China remains the largest producer of EVs and batteries, but Europe has also been growing its share of production. Using data from BNEF’s Bloomberg Terminal, the chart below shows that Europe’s share of global battery production could rise to 31% by 2030.
As demand for EVs grows, so will the need for public charging stations to support them. A recent study by J.D. Power found that lack of availability of public charging stations was a top concern for US EV buyers. As a result, EV manufacturers are continuing to focus on increasing the capacity and speed of their charging systems.
Another way to boost EV uptake is to reduce the time consumers spend waiting at charging stations. A few years ago, the average EV driver in the US spent around six hours a day at charging stations. Now, it’s down to around three hours. That’s still too much for many people, especially those with busy lifestyles.
The good news is that electric vehicle charging speeds are increasing, and there are now over 10,000 DC fast chargers in the U.S. And more are on the horizon.
However, if the goal is to have widespread EV adoption in the near future, then a lot more work needs to be done to make it happen. In addition to boosting charging station coverage, there are other barriers that need to be overcome. For example, the number of EV owners is not yet large enough to ensure that public charging stations are evenly distributed across the country. This requires further investment in charging infrastructure, and it’s important that the right type of chargers are used to cater to different EV drivers’ needs. This will be essential for overcoming range anxiety, which is a common concern among EV buyers.