Molly Ayala
Electric vehicle sales are growing worldwide, with around one in five new cars sold globally being electric in 2023. In 2022, there were more than 26 million electric cars in use globally, a significant increase from the 10.6 million sold that year. China leads the electric vehicle market, with over 8.1 million units sold in 2023, followed by the United States with 1.39 million, and Germany with 700,000. Norway has the highest market penetration per capita, with 95% of new car sales being electric vehicles in 2023. Europe had about 11.8 million plug-in passenger cars at the end of 2023, accounting for 30% of the global stock.
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What You'll Learn
China leads the way
China's dominance in the EV market is driven by several factors. One key factor is the country's position as the largest automotive market globally. Domestic production plays a significant role in the widespread adoption of electric vehicles within China. Additionally, supportive government policies have fostered an environment conducive to the growth of the EV industry.
Chinese EV manufacturers have also played a pivotal role in the country's leadership. BYD, a China-based company, has emerged as a prominent competitor to Tesla, the long-standing leader in the EV market. In 2022, BYD overtook Tesla as the best-selling plug-in hybrid electric vehicle (PEV) brand globally. BYD's success is attributed to its diverse range of plug-in hybrid electric models, which have gained popularity among consumers.
BYD's strong performance continued into 2024, as evidenced by its annual revenue surpassing that of Tesla. BYD reported a 29% increase in revenue, reaching $107 billion. This impressive growth was bolstered by the sales of its hybrid vehicles, which contributed to the company's overall success in the EV market. BYD's sales figures for 2024 further solidified its position as a leading EV manufacturer, selling a record 4.3 million vehicles globally.
While China leads the global EV market, it is important to note that the country faces challenges, such as tariffs imposed on Chinese EV manufacturers by the US and the European Union. Despite these obstacles, China's commitment to the EV industry, supported by domestic production, innovative companies like BYD, and encouraging government policies, positions the country as a key driver in the worldwide shift towards electric vehicles.
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Europe's market share
Electric vehicles (EVs) are growing in popularity, with global sales reaching 13.8 million in 2023, up from 11.1 million in 2022. This represents an 18% share of all cars sold globally, up from 14% in 2022. As of 2023, there are more than 40 million electric cars in use globally.
In recent years, Europe has seen a growing trend towards EV adoption, with electrified vehicles (including BEVs, HEVs, and plug-in hybrids) accounting for 58.4% of all passenger car registrations in February 2025, a significant increase from 48.2% in February 2024. This trend is influenced by the EU's scheduled CO2 limits, which are encouraging manufacturers to increase their EV offerings.
However, Tesla, a prominent EV manufacturer, has faced challenges in Europe. In February 2025, Tesla's market share in Europe continued to shrink, with a 42.6% decrease in sales compared to the previous year. This drop has been attributed to increased competition, a slowdown in European economies, and a potential buyer backlash against Tesla CEO Elon Musk's involvement with former US President Donald Trump. Despite these challenges, the overall EV registrations in Europe have continued to grow, with a 26% increase in February 2025 compared to the same month in 2024.
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$12.95
US sales increase
Electric vehicle (EV) sales in the US have been experiencing a period of sustained growth. In 2023, the US was the second-largest market for electric vehicles, with approximately 1.39 million vehicles sold, a growth of more than 40% from the previous year.
This positive trend continued into 2024, with sales in the first three quarters of 2023 totalling more than 1 million light-duty electric vehicles, a 58% increase compared to the same period in 2022. The US EV market is highly competitive, with 24 models posting year-over-year sales increases in 2024, and 17 new models entering the market. The Tesla Model Y and Model 3 continue to be the best-selling electric vehicles in the US, although their sales declined in 2024. Other manufacturers, such as General Motors, Honda, Hyundai, and Ford, have also been increasing their EV sales.
In the second quarter of 2024, the share of electric and hybrid vehicle sales in the US increased to 18.7% of total new light-duty vehicle sales, up from 17.8% in the first quarter. This growth was driven primarily by hybrid electric vehicle sales, which increased by 30.7% year-over-year. Plug-in hybrid electric vehicle sales also increased slightly from 1.7% to 2.0% of the total light-duty market.
The gains in EV sales in the US have been supported by various factors, including strong incentives from automakers, attractive lease deals, and federal and state incentive programs. Improving charging infrastructure and advancements in battery technology have also played a role in the increasing adoption of electric vehicles in the US.
Looking ahead, Cox Automotive expects further EV sales growth in 2025, with more new products entering the market and continued support from automakers. Policy changes in Washington could potentially slow down this growth, but they are not expected to take effect immediately, and buyers may take advantage of the current incentives before any changes are implemented.
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Norway's high EV penetration
Electric vehicles (EVs) are growing in popularity globally, with around 1 in 5 new cars sold in 2023 being electric. However, Norway stands out with an exceptionally high EV penetration rate. In 2023, about 90% of all cars sold in Norway were electric, including battery-electric vehicles (BEV) and plug-in hybrid electric vehicles (PHEV). This remarkable statistic represents a sharp increase from pre-pandemic levels, which stood at 53.4% in 2019.
Another factor contributing to Norway's high EV penetration is its per-capita income. Norway has the largest EV ownership per capita globally. In 2013, the EV concentration reached four plug-in electric vehicles per 1,000 people, nine times higher than the US, which had the largest plug-in electric car market at the time. This indicates that Norway's high EV adoption may be influenced by its relatively high standard of living and purchasing power.
However, it is important to note that Norway's EV success story has also faced some challenges. Despite having the world's highest growth rates and EV penetration for many years, Norway's crude oil consumption for motor vehicles increased from 2013 to 2016. Additionally, some critics argue that Norway's experience with large-scale EV penetration has unintended consequences, particularly when consumers purchase an EV without retiring their traditional internal combustion engine (ICE) vehicle.
Furthermore, there has been growing scrutiny of EV subsidies in Norway, with several populist-leaning political groups criticising them as "elitist". As a result, the government has reduced some subsidies, such as free municipal parking and exemptions from certain tolls. Proponents of EV adoption have warned that any rollback of subsidies could negatively impact EV penetration, as seen in Sweden, where the elimination of several subsidies led to a 20% drop in EV sales.
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Tesla's global lead
Electric vehicles are growing in popularity, with around 1 in 5 new cars sold globally being electric in 2023. This trend is particularly pronounced in Norway, where over 90% of new car sales were electric in 2023, and in China, where almost 40% were electric.
In 2023, Tesla maintained its position as the largest market shareholder in the electric vehicle sector, with 19.9% of global sales. The Tesla Model Y was the world's most popular plug-in electric vehicle, with worldwide unit sales of roughly 771,300 in 2022. However, Tesla faced increasing competition from Asian brands in 2022, and in 2023, BYD, a Chinese automaker, overtook Tesla as the best-selling PEV brand. BYD's success is driven by its dual strategy of producing both fully electric vehicles and plug-in hybrid electric vehicles, which has enabled it to dominate markets in China and globally.
Despite Tesla's success in 2023, the company has faced challenges due to political headwinds and fierce competition from Chinese rivals. As of March 2025, Tesla's sales were dropping globally, and the company was struggling to keep up with Chinese automakers in terms of sales, pricing, and innovation, especially in emerging markets. Tesla's products are perceived as "stale" compared to the continuous updates and new models released by Chinese competitors.
However, Tesla has a global presence that contributes to its financial performance, and the company has been investing in research and development, particularly in fields such as artificial intelligence and connected vehicles. As of 2023, Tesla also became the North American Charging Standard, and the company has been expanding its Supercharger network to cater to a wider range of electric vehicles and customers.
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Frequently asked questions
China sold the most electric vehicles in 2023, with 8.1 million units sold.
The United States sold the second-highest number of electric vehicles in 2023, with approximately 1.39 million.
Norway has the highest market penetration per capita of electric vehicles, with 93% of new car sales being electric in 2023.
