Growth Of EV Market Highest In China, EU, Says WRI Report

Global energy think tank World Resource Institute (WRI), in its recent report on ‘State of Climate Action’, highlights that the share of electric vehicles (EV) in passenger car sales has grown at an average annual rate of 65%. It’s a rise from 1.6% of sales in 2018 to 10% in 2022. For the first time in this report series, such progress puts this indicator on track for 2030.

The WRI report mentions that EV sales have witnessed an average growth of 65% in light EV cars. This is a rise from 1.6% of sales in 2018 to 10% of sales in 2022. It adds that India sold about 7 million electric cars, over the past five years. In this, the light-duty EV sales have grown at an average of 65 percent per year. 

It adds that, in 2022, the share of EVs in light-duty vehicle sales increased by 63 percent—which brought an improvement in its sales. However, more progress is still required to reach 75–95 percent of light-duty vehicle sales by 2030. It specifically mentions this for developing economies, where sales are significantly lower than in developed countries. 

The WRI report finds that global efforts to limit warming to 1.5°C are failing across the board. It associated this with the lack of progress on every indicator — except electric passenger car sales. It’s lagging behind other dimensions, such as the pace and scale that is necessary to address the climate crisis.

Global efforts are heading in the right direction at a promising, albeit still insufficient, pace for another six indicators, and with the right support, some could soon experience exponential changes. And among all indicators heading in the right direction, those focused on increasing mandatory corporate climate risk disclosure, sales of electric trucks, and the share of EVs in the passenger car fleet saw the most significant gains in a single year relative to recent trends.

However, the indicators that are found to be on the right track are those focused on increasing mandatory corporate climate risk disclosure, sales of electric trucks, and the share of EVs in the passenger car fleet. It saw the most significant gains in a single year relative to recent trends. 

The WRI report mentions that in 2022, the share of electric vehicles in light-duty vehicle sales increased 63 percent—a meaningful improvement relative to recent trends. Much more progress will be needed to reach 75–95 percent of light-duty vehicle sales by 2030. It’s especially required for developing economies, where sales are significantly lower than in developed countries, but EV sales are in the breakthrough stage of an S-curve and will likely continue to accelerate in the coming years.

Historically, the study finds China to be the driver of the growth of EVs, which is due in part to the subsidies provided by both national and local governments for the purchase of electric cars. It has been due to the subsidy provided of 10,000 yuan. Electric vehicles (EVs) account for 20–40 percent of the total light-duty vehicle (LDV) fleet by 2030 and 85–100 percent by 2050.

The trend suggests that this year, the share of electric vehicles in light-duty vehicle sales is on track for the first

time. The 2030 target is reportedly found to be well in sight as these vehicles become cheaper, ranges improve, and charging infrastructure is built out. In addition to continued technology cost declines, major policy updates, including the Inflation Reduction Act in the United States and updates to the European Union (EU) Green Deal, are aimed at helping push EV sales into overdrive. However, the WRI report finds this growth to be largely limited to China, Europe, and the United States (US), with additional efforts needed to extend this opportunity to developing countries.

Moreover, the WRI report finds that, over the last five years, the share of EVs in the global LDV fleet rose by an average of 54 percent per year. It estimates that, between 2021 and 2022, it almost doubled—a meaningful improvement relative to recent trends. This rapid growth in sales volumes is found in key markets of China, the European Union, and now the United States. It has led to greater overall EV numbers, with combined total EV numbers in these three major markets rising from a little under 1 million on the road in 2016 to 16 million on the road by 2022, as per the IEA report 2023. The WRI report finds the current target Electric vehicles (EVs) to account for 85 percent of the total annual two- and three-wheeler sales by 2030 and 100 percent by 2050.