Falloff in new vehicle registrations accompanied by surge in Electric Vehicle purchases
The electric vehicle (EV) market has witnessed significant growth and transformation in recent years, with key players like the U.S., EU, and China leading the charge.
In the first half of 2022, the U.S. market demonstrated the largest growth rate, increasing by 7%, a threefold jump compared to 2020. This surge is a testament to the U.S.'s burgeoning EV market and its potential for further expansion in the coming years. The U.S. government's active support, through tax benefits and infrastructure development, has been instrumental in this growth.
However, the U.S. market share for EVs is yet to match that of the EU or China. The EU, in particular, has seen a substantial increase in the registration of plug-in hybrid and battery-electric passenger cars. From about 3% in 2019, the figure rose to 19% in 2021. This growth can be largely attributed to national and municipal legislation, as well as the mandated CO2 emissions target of 95 g/km that came into force in 2020.
China, on the other hand, has overtaken the EU market share, rising to 24% by mid-2022, up from just 5% in 2019. National pilot programs, incentives, and regulations, particularly the new energy vehicle (NEV) mandate for auto manufacturers, have been the main factors driving the development in China's EV industry.
While the EU and China lead the way, it's Norway that stands out as a frontrunner in EV adoption. By August 2025, approximately 97 percent of new car registrations in Norway are expected to be electric. Countries like Denmark and China follow closely with around 50 percent electric new car sales.
In the U.S., the SUV sector has emerged as the most dominant market segment, with an 8% increase in sales compared to 2020, accounting for a 43% share. The expansion of the U.S. EV market is also due in part to improvements in EV charging infrastructure.
The U.S. has set a goal to significantly increase its EV market share in the coming years, with an ambitious objective of reaching 50% by 2030. The market's current rapid growth, driven by recent advancements and government support, suggests that this goal may not be far-fetched.
In conclusion, the global EV market is witnessing a period of rapid growth and transformation, with the U.S., EU, and China leading the charge. While the EU and China currently lead in EV adoption, the U.S. is quickly catching up, driven by government support, advancements in EV charging infrastructure, and tax incentives for EV sales. The future of the EV market looks promising, with each region vying to be at the forefront of this technological revolution.
