Electric Car Sales Globally in 2023

In 2023, It is estimated that nearly 14 million electric cars will be sold worldwide, representing a notable 35% increase from 2022. In USA 60% increase compared to the same period in 2022.

AUTOMOBILE INDUSTRY NEWS

Salman Chaudhary, Founder Pinkywheels.com

7/18/20233 min read

2023 Bolt EV and EUV
2023 Bolt EV and EUV

Electric Car Sales Globally in 2023

The year 2023 marks another significant chapter in the accelerating transition towards electric mobility, with electric car sales witnessing substantial growth in both the United States and global markets. A closer look at the data reveals several key highlights and trends that demonstrate the increasing acceptance and adoption of electric vehicles.

In the United States, several factors have contributed to the rise in electric car sales. Firstly, the availability of a wider range of electric car models beyond Tesla has played a crucial role in attracting diverse consumer segments. Major automakers have invested heavily in electric vehicle development, offering consumers more options in terms of style, performance, and affordability. This increased model diversity has expanded the appeal of electric cars to a broader customer base.

Furthermore, increased awareness and support for electrification have propelled the growth of electric car sales in the United States. Government initiatives, such as the Inflation Reduction Act (IRA), have incentivized investments in US manufacturing operations by global electromobility companies. These investments have totaled around USD 52 billion in North American EV supply chains, fostering job creation and bolstering the domestic electric car market.

The positive momentum in the United States is expected to continue throughout 2023, with electric car sales projected to maintain steady growth. In the first quarter alone, Electric car sales experienced a remarkable 60% increase compared to the same period in 2022. This significant surge indicates a growing appetite for electric vehicles among American consumers, driven by factors such as environmental consciousness, long-term cost savings, and advancements in charging infrastructure.

On a global scale, electric car sales are poised for continued expansion in 2023. It is estimated that nearly 14 million electric cars will be sold worldwide, representing a notable 35% increase from 2022. This surge in sales will elevate the global electric sales share to approximately 18%, signifying the growing prominence of electric vehicles in the overall automotive market.

In China, the world's largest electric car market, the year started with a slow pace but quickly regained momentum. Electric car sales in the first quarter of 2023 were more than 20% higher than in the previous year. This resurgence is expected to continue, with sales in China projected to exceed 8 million by the end of 2023, accounting for a sales share of over 35%. China's recovery in electric car sales highlights the country's commitment to clean transportation and its ability to adapt and bounce back from temporary setbacks.

In Europe, electric car sales are anticipated to have slightly slower growth compared to China and the United States. The first quarter of 2023 saw a 10% increase in electric car sales in Europe, with expectations of a more than 25% growth rate for the full year. This projection suggests that approximately one in four cars sold in Europe will be electric, underscoring the region's commitment to reducing emissions and achieving climate targets.

Beyond the major markets, electric car sales in other regions are also expected to make significant strides in 2023. It is estimated that sales outside of the major markets will reach around 900,000 units, with countries like India demonstrating notable growth. As emerging economies embrace electric mobility, their increased adoption of electric cars will contribute to the overall global sales volume.

While the outlook for electric car sales in 2023 appears positive, certain risks and opportunities should be considered. A sluggish global economy and the phase-out of subsidies for new energy vehicles (NEVs) in China pose potential downside risks to the market. However, the opening of new markets and policy developments that strengthen support for electric car sales present upside potential for the industry.

New policy developments, such as the proposed strengthening of greenhouse gas (GHG) emissions standards for cars in the United States, could further bolster electric car sales even before implementation. Stricter emissions standards would incentivize automakers to increase their electric vehicle offerings and encourage consumers to choose electric cars over traditional internal combustion engine vehicles.

As 2023 progresses, the data on electric car sales showcases a dynamic and evolving market, with increasing consumer acceptance, growing investment, and expanding global sales volumes. The continued growth of electric car sales in the United States and worldwide signifies a monumental shift towards sustainable transportation and underscores the collective efforts to mitigate climate change and improve air quality for future generations.