Electric Vehicles: Their Adoption Rate Remains Low in the World, with the Exception of China and Europe
Electric and hybrid cars are hitting the streets of China and Europe faster than expected. But its popularity in the United States remains low and it is concentrated among the wealthiest buyers in a few states. These are some of the highlights from Citibank’s recently released “State of Global Electric Vehicle Adoption” report.
The bank’s global automotive analyst team revised its previous estimates and concluded that progress has been slow in most parts of the world. Looking at the global global figures, the percentage of the electric and hybrid market is 14.7% in 2022 and is expected to reach 20.1% this year. By 2030, the share of global sales could reach 45%.
However, these numbers are only driven by two of the largest markets, China and Europe. In other countries, adoption remains modest, indicating that news of the demise of the internal combustion engine may have been exaggerated. China has the highest penetration rate of electric and hybrid vehicles.
According to Citi estimates, it currently accounts for 28% of sales, and by next year it should have more than 50% of the market. As far as the European market is concerned, the participation today is lower than that observed in China, but this should change in the coming years.
According to the report, electric and hybrid vehicles captured just over 15% market share in 2022. The share is therefore expected to exceed 50% in 2028, shortly after China. By 2030, the share of these cars in the European and Chinese markets should be about the same, around 67%.
In the United States, progress is modest and concentrated in 8 states. In other cases, combustion engines prevail. “The breach has not yet spread significantly across the regions,” the report said.
Current figures show only a 6% share of electric vehicles in sales in the United States. The popularity of such cars is slightly higher among more affluent consumers: in the premium and premium segment, the figure exceeds 20%. As you can imagine, California is the most popular state for electric and hybrid vehicles, attracting 14% of consumers. In Florida it’s 9% and in New York it’s 7%.
The projections presented by the bank go until 2030, when the share of electric and hybrid cars will reach 45% in the American market, a percentage similar to that of other countries in North America, Canada and Mexico. In Japan, the adoption of electric vehicles remains at lower levels than in the United States. It accounts for less than 2% of sales, and the proportion is expected to reach just 10% in 2028.
Among major markets in Asia, South Korea leads adoption after China. There is a percentage of 10% and it could exceed 50% in 2028. The numbers in South America so far are minimal. And if the predictions turn out to be correct, they will be for some time to come.