Only 2% of new car sales across all powertrains increased year over year, while the market for new automobiles using internal combustion engines is shrinking. Only Australia’s ICE vehicle sales increased among the affluent auto markets last year, and even then, they only increased by 1%.
The seventh annual Electric Vehicle Outlook report from BloombergNEF was published today. The paper provides fresh information and forecasts about the now-familiar narrative: Sales of electric vehicles are presently the only segment of the global passenger car industry that is expanding at double-digit rates each year. The world’s largest EV market is China, which is also a key EV exporter. more EV adoption will necessitate more mining and processing of vital components like lithium.
The report’s primary findings have been covered by Hyperdrive and Bloomberg News. Here are four more key points to remember:
1. EV sales are increasing globally.
In 2022, the global sales of consumer electric vehicles rose by more than 60%. Additionally, they rose in each significant market. Sales of EVs increased by more than 200% in usually tiny areas like Southeast Asia and India. In Japan, they increased by 100%, almost 100% in China, 90% in Australia, 50% in the US, and 17% in Europe.
Sales of new automobiles across all powertrains gained just 2% year-over-year, and the market for new automobiles with combustion engines is shrinking. Despite these factors, sales of electric cars increased. Only Australia’s ICE vehicle sales increased among the affluent auto markets this past year, and even then, they only increased by 1%.
Only two markets—Southeast Asia and India—saw a rise in ICE and EV sales from one year to the next. The duration it takes to achieve triple-digit EV expansion rates to reverse ICE car sales patterns is something to watch.
2. In the power industry, EVs as a percentage of automobiles are behind solar, wind, hydro, and nuclear power, but eventually they will catch up.
Since hydropower, nuclear power, and renewable energy sources like wind and solar have been widely used for decades, a sizeable portion of the world’s electricity generation is now emission-free. More than 40% of the power used in the world in 2017 was carbon-free. transport for people? Not really. Only 1.7% of passenger car km were traveled last year in EVs.
That shows how far EVs still have to catch up. But EVs can, in a sense, catch ahead of a following wind. By 2050, the electricity industry will have decreased its carbon footprint by more than 80%. EVs will make up an increasing portion of all driving while using greener energy each year.
These two main trends will have virtually met by the middle of the century. In 2050, EVs will account for more than 75 percent of all vehicle miles traveled, and more than 45 percent of their recharging power will be zero-emission.
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3. The long-range is not as predictable as you would think
There were just nine electric car alternatives with a minimum range of 400 kilometers (249 miles) available globally five years ago. There were over 200 the previous year. Every market has seen an increase in the amount of long-range EV trims (pre-packaged sets of amenities for a certain car model), but China has outpaced all others with 141 long-range EV trims as of 2018.
In comparison to North America’s eight long-range trims in 2018 and Europe’s 61, both continents now have 56 long-range trims.
The cost of these long-range EVs is higher. In Europe and the US, the price of battery electric automobiles from BMW and Mercedes-Benz is 30% more than that of their ICE counterparts. The advanced transport team at BNEF anticipates that as manufacturers’ obligations to sell more electric vehicles grow more pressing, they will introduce a variety of cheaper and lower-range EVs in the future.
4. Small-scale, local fuel cells
Hydrogen-powered electric vehicles with fuel cells have been available on the market for many years. Additionally, they have a persistently limited market—in 2022, less than 16,000 will be sold globally. Additionally, this tiny market is quite localized. Two-thirds of the passenger fuel cell automobile market was accounted for by Korea last year, with the US coming in second with 18%.
