Accelerated Development of the Global Electric Vehicle Industry (International Perspective)

The International Energy Agency recently released a report titled '2023 Global Electric Vehicle Outlook', which shows that global electric vehicle sales, including pure electric and hybrid models, exceeded 10 million units in 2022. It is expected to grow by another 35% this year, reaching 14 million units

The International Energy Agency recently released a report titled '2023 Global Electric Vehicle Outlook', which shows that global electric vehicle sales, including pure electric and hybrid models, exceeded 10 million units in 2022. It is expected to grow by another 35% this year, reaching 14 million units. This means that the global share of electric vehicles in the entire automotive market has increased from less than 5% in 2020 to 14% in 2022, and is expected to further increase to 18% this year.

In recent years, with the support and promotion of preferential policies from various countries, the global electric vehicle market has shown a rapid growth trend, with China's electric vehicle performance particularly impressive. The accelerated development of the electric vehicle industry not only leads to significant changes in the automotive industry, but also promotes sustained low-carbon transformation in the transportation sector.

Electric vehicle sales are showing a rapid growth trend

The 2023 Global Electric Vehicle Outlook report points out that the vast majority of global electric vehicle sales are currently concentrated in three major markets - China, Europe, and the United States. In 2022, the Chinese market accounted for 60% of global electric vehicle sales, and currently more than half of the sold electric vehicles worldwide are located in China. In the same year, sales of electric vehicles in Europe and the United States increased by 15% and 55% respectively year-on-year, with electric vehicles accounting for over 1/5 of new sales in Europe.

Sales of electric vehicles in other regions have also shown a rapid growth trend. In 2022, the sales of new energy vehicles in six Southeast Asian countries, including Malaysia, Thailand, Singapore, Indonesia, the Philippines, and Vietnam, exceeded 51000 units, an increase of approximately 219% compared to 2021. Taking Thailand, the largest new energy vehicle market in the region, as an example, the sales of electric vehicles in the country doubled last year. In South Asia, India's electric vehicle sales also more than doubled in 2022, with a market share rising to 1.5%. In the Latin American region, a total of 95 new electric vehicle models were on sale in the Chilean market in 2022, with a year-on-year increase of 106.2% in the number of newly registered zero emission and low emission vehicles. The National Automobile Association of Chile predicts that the number of registered electric vehicles in Chile will exceed 12000 in 2023, a year-on-year increase of 84%.

According to the International Energy Agency's forecast, based on existing policies and automotive industry goals, the global sales share of electric vehicles is expected to increase to 35% by 2030. In China, the European Union, and the United States, the average share of electric vehicles in total vehicle sales is expected to rise to around 60% by 2030.

Electric vehicles are one of the driving forces behind the rapidly emerging global new energy economy, bringing historic changes to the global automotive manufacturing industry, "said Fatih Birol, Director of the International Energy Agency. The rapid growth of new energy vehicles is driving the acceleration of low-carbon transformation in the global transportation sector. According to a report by the International Energy Agency, electric vehicles will net reduce global greenhouse gas emissions by approximately 80 million tons in 2022. It is expected that by 2030, the electrification of automobiles will reduce global oil demand by at least 5 million barrels per day.

Multiple measures to promote electric vehicle consumption

In recent years, a series of support and preferential policies introduced by various countries have been an important factor in the rapid development of new energy vehicles. Taking Southeast Asia as an example, since last year, the Thai government has provided subsidies ranging from $2200 to $4800 per electric vehicle for consumers to purchase. The Indonesian government also provides consumers with a subsidy of approximately $5300 per vehicle for purchasing electric vehicles. The Malaysian government has announced that electric vehicle import tax and consumption tax will be exempted by the end of 2023, and sales tax will be exempted for assembled imported electric vehicles by the end of 2025.

An article in the Financial Times stated: "Faced with the emission reduction trend in the automotive industry, major automakers are also investing heavily in zero emission vehicles, whether they are electric or hydrogen powered models." Some well-known car companies have successively launched their own electric vehicle transformation plans: Dazhong Group will stop selling fuel vehicles in Europe by 2035; By 2030, at least 50% of BMW's models in Europe will be pure electric vehicles; By 2030, Mercedes Benz will only sell pure electric vehicles in markets where conditions permit; Manufacturers such as Ford and General Motors have pledged to promote the sale of zero emission vehicles worldwide by 2040.

Electric vehicle manufacturers have increased their research and development efforts, providing consumers with more brand choices. According to statistics, the number of electric vehicle models available globally reached 500 in 2022, more than double the number in 2018. Some car companies also have plans to launch more economy models in the future. Volkswagen Group announced plans to launch compact pure electric vehicles priced below 25000 euros in the European market in 2025, and pure electric vehicles priced below 20000 euros from 2026 to 2027.

The strong market demand has also brought a positive chain reaction to battery production and industrial chain. According to the International Energy Agency, the announced battery production projects globally are sufficient to meet the demand for electric vehicles by 2030. At the same time, the supporting facilities for electric vehicles are also constantly improving. According to the latest data from the National Association for the Development of Electric Vehicles in France, the number of available charging stations in France has exceeded 100000, with a monthly increase of 3000 to 4000. It is expected to reach 400000 by 2030. The Singaporean government has been providing pure electric vehicle public charging station subsidies for apartments and other facilities since July 2021. It is planned that by 2025, the number of charging stations in nearly 2000 residential parking lots across the country will increase to 12000; By 2030, the number of charging stations nationwide will increase to 60000, with 40000 located in public parking lots and 20000 used for private equipment.

Chinese car companies assist in transportation decarbonization transformation

In recent years, China has increased its investment in the field of electric vehicles, and the market has continued to develop and grow. China has become a global leader in the field of electric vehicles. According to the statistics of the China Association of Automobile Manufacturers, the production and sales of new energy vehicles in China reached 7.058 million and 6.887 million respectively in 2022, with year-on-year growth of 96.9% and 93.4%, respectively. From January to April this year, the production and sales of new energy vehicles in China reached 2.291 million and 2.222 million, respectively, with a year-on-year increase of 42.8% and a market share of 27%. According to data from the China Association of Automobile Manufacturers, China's new energy vehicle exports reached 679000 units in 2022, a year-on-year increase of 1.2 times. In the first quarter of this year, China exported a total of 248000 new energy vehicles, a year-on-year increase of 1.1 times.

Recently, the Chinese brand Wuling new energy vehicle Airev made its debut at the 42nd ASEAN Summit, with 50 Wuling dedicated vehicles providing commuting services for participating delegations, receiving widespread attention. In May, Great Wall Motor launched three new energy vehicle models in the Malaysian market. BYD, Nezha Motors, and SAIC Group have recently announced the construction of overseas passenger vehicle production bases and new energy vehicle key component production bases in Thailand. Zhao Feng, General Manager of SAIC Group Thailand, said, "The construction of new energy industrial parks will provide strong support for Thailand's transition to a green and low-carbon society

In Europe, BYD's pure electric buses have footprints in over 100 local cities. Last September, the factory project of Chinese power battery manufacturer Ningde Times in Hungary was officially launched; The first replacement power station of NIO Energy's European factory invested and constructed by NIO Motors in Hungary has also officially been taken offline. Hungarian Minister of Foreign Affairs and Foreign Economy, Siyardo, stated that automobile manufacturing is a pillar industry in the local area, and attracting Chinese investment is crucial for the Hungarian economy.

Chinese electric vehicle companies actively assist in decarbonization of transportation in Latin America. Great Wall Motor's Brazilian factory under reconstruction and expansion is expected to be officially opened next year, specializing in the production of hybrid and electric vehicles. It is expected that in the future, the annual production capacity will reach 100000 vehicles, directly creating 2000 jobs. Last year, BYD launched 1000 pure electric taxis to the ride hailing platform in Mexico. Since the first batch of 100 Chinese made electric buses arrived in Chile in November 2018, several Chinese automobile companies such as Yutong and BYD have delivered hundreds of pure electric buses to Chile.

Gustavo Manes, the climate change coordinator for Latin America and the Caribbean region of the United Nations Environment Programme, stated that the transportation industry generates 20% of the overall emissions of greenhouse gases in Latin America. Chinese car companies are driving the upgrading of Latin American transportation systems with unique technology and environmental protection concepts, helping to accelerate the decarbonization process in the local transportation sector.

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