As climate change grips the globe and car sales in dominant markets begin to slump, numerous countries are embracing the novelty of all-electric personal vehicles – some more so than others. With purchase assistance coming in the form of government-subsidized credits, will electric vehicles overtake traditional internal-combustion-engine-driven vehicles?
While the last decade has seen an automobile sales and production boom in the US and high-income countries such as those in Western Europe, the growth rate is not sustainable. In fact, a number of automobile manufacturing plants have recently been shuttered, including General Motors’ Lordstown Plant. However, significant gains may still lie ahead, particularly for electric cars and in other countries. Around the world, countries are embracing electric cars in an attempt to free themselves from fossil fuels and mitigate environmental impacts. Car manufacturers are investing in electric vehicles so they do not fall behind competitors and to avoid the stigma of pollution associated with non-electrified vehicles.
The issue of pollution is at the forefront in countries such as India and China. In 2017, India’s leader initially announced a goal of shifting to solely electric vehicles by 2030. The announcement was less of a goal setting exercise than it was an outright command; the shift would not be optional. However, with concerns over job losses and industry pushback, the target was reduced to 30% of passenger vehicles being electric. The original plan was significantly more aggressive than the targets of countries such as the UK and France. With rampant air pollution impacting the country, such a move may be India’s only hope to reduce not only its local pollution, but also to cut down on emissions impacting the global climate.
In China, however, an electric vehicle bubble appears to have formed following the entry of numerous – that is, over 400 – electric car startup companies into the Chinese market. To curb this, the country has drafted a measure to prevent further entrants to the market while nurturing those with a competitive edge. A number of Chinese companies have seen success not only in their own market, but overseas as well. In the US and Europe, Kaiyun Motors has had some success selling its Pickman electric pickup trucks. In fact, six Chinese firms currently have their sights set on selling their products in North America and Europe. Electric cars are here to stay, so expect to see more entrants to the US market in the years to come.
Want to Learn More?
Don’t worry, we have you covered! For additional information and analysis of US industry trends, see Global Light Vehicles, a report published by the Freedonia Focus Reports division of The Freedonia Group. This report forecasts to 2023 global sales, production, and parc for light vehicles by global region in units. Regions include:
- North America
- Western Europe
- other regions, which span Central and South America, Eastern Europe, and Africa/Mideast
In addition, for the three main regions, sales, production, parc, and parc per capita by major country are forecast to 2023.
To illustrate historical trends, global sales, production, parc, and parc per capita by major region are provided in annual series from 2008 to 2018. For the three main regions, sales, production, parc, and parc per capita by major country are provided at five-year intervals for 2008, 2013, and 2018.
Three-wheeled vehicles, such as those used for last-mile transportation of goods in lower income countries, are excluded from the scope of this report.
You can also check out some of our related reports, which include:
About the Author
Chris Dyer is a Market Research Analyst for Freedonia Focus Reports. He holds a Master of Arts in Security Studies, and his experience as an analyst covers multiple industries.