According to a new report by MarketsandMarkets, the global electric vehicle market size is expected to grow from 8,151,000 in 2022 to 39,208,000 in 2030, at a CAGR of 21.7%. The electric vehicle market is growing, driven by factors such as growing demand for zero-emission commuting and government support for low-emission vehicles through subsidies and tax breaks, which has prompted automakers to switch to electric vehicles.
Growing concerns about rising pollution in the auto industry are the main reason why government agencies are promoting zero-emission vehicles rather than gasoline or diesel vehicles. The need to promote zero-emission vehicles has been recognized to reduce growing pollution. To entice and encourage people to buy electric vehicles, government agencies around the world are rolling out lucrative programs and incentives, including sizable tax rebates, lower vehicle purchase taxes, lower road taxes for zero-emission vehicles, and more.
The report profiles the electric vehicle market in Asia Pacific, covering China, Japan, South Korea, India, Thailand, Indonesia, Malaysia, and Vietnam. The region is home to some of the fastest growing economies such as China and India. Recognizing the growth potential of the electric vehicle market, governments in these emerging countries have launched various initiatives to attract major OEMs to produce electric vehicles in their domestic markets. For example, China is investing heavily in the production of electric passenger and commercial vehicles and has export plans. Original equipment manufacturers such as BYD plan to open factories in other parts of the world to produce electric buses and electric trucks to meet regional demand. The state supports the use of electric vehicles by providing subsidies for the purchase of electric vehicles. The country is also encouraging manufacturers to develop better electric vehicle technology. Due to subsidies for electric vehicle infrastructure construction, various electric vehicle charging stations will be built across the country. The country encourages the development and deployment of electric vehicles and trucks. In 2020, China developed and sold a low-cost electric passenger car priced at less than $5,000, the Wulin Hongguang Mini Electric Vehicle. The car is mainly sold in the domestic market, but its total sales ranked second in total Electric Vehicle sales in 2020 and 2021. China’s electric vehicle market grew strongly due to growing demand for electric vehicles in 2021, which is expanding and accelerating. The country plans to sell 20% of all vehicles by 2025 as electric vehicles. According to various official estimates, the market share of electric vehicles is expected to reach around 30-35% of the overall car market by 2025.
Japan is also expanding its Electric Vehicle infrastructure with various OEMs in the region, developing BEVs, PHEVs and FCEVs for the market. It showcases the entire FCEV deployment during the Tokyo Olympics. South Korea plans to accelerate domestic demand for electric vehicles. OEMs such as Hyundai and Kia are working hard to bring high-performance electric vehicles to market. Various top European and American OEMs are also increasingly serving the Asian Electric Vehicle market. These factors are expected to drive the electric vehicle market in Asia Pacific. Thailand, Indonesia, Malaysia and Vietnam have also started to cut vehicle emissions and switch to electric vehicles.
The Middle East and Africa region has recently begun to focus on the electric vehicle market. Governments in countries such as the United Arab Emirates, Egypt, South Africa and Cyprus have been working to expand the adoption of electric vehicles and Electric Vehicle charging stations in the region. These countries offer incentives for Electric Vehicle buyers. Companies such as Tesla, Geely, Toyota, Volkswagen and Nissan are market leaders in the region. The majority of EVs sold in the region are purchased in China and Europe. Fuel costs for electric vehicles are falling sharply due to low electricity prices in these regions, but vehicle ownership costs make up most of the difference. There’s one benefit to using EVs in the Middle East: urban areas are closer together, and a decent Electric Vehicle on an 80 percent charge can take you anywhere you need to go. In recent years, the increasing disposable income of people in the region and the need to reduce emissions have led to an increasing demand for electric vehicles. For example, the United Arab Emirates plans to add more than 42,000 electric vehicles in the country by 2030. The country also plans to become one of the world leaders in the development of charging stations in the region. The country plans to make electric vehicle charging free by 2025 in a bid to boost the electric vehicle market.
Passenger cars account for the largest share of the electric vehicle market. The demand for passenger vehicles has increased due to the increasing demand for zero-emission vehicles and government incentives, regulations, and affiliates. Electric passenger vehicles are the largest segment in the electric vehicle market and are expected to witness significant growth over the forecast period. The main factors driving the market are the availability of various models, improved technology, increased customer awareness, and availability of subsidies and tax breaks. Tesla, Volkswagen, SAIC, BYD, Stellantis, BMW, Nissan, Toyota, Honda, Hyundai, Great Wall Motors, Mercedes Benz, Volvo, GM and other large electric car manufacturers are the powerhouses in the market. These companies have a strong global market for their electric vehicles. The best-selling passenger electric vehicles in 2021 were Tesla Model 3, SAIC Hongguang Mini Electric Vehicle, Tesla Model Y, Volkswagen ID 4, BYD Qin Plus PHEV, Lixiang One PHEV, BYD Han Electric Vehicle, BYD Song Pro Plus PHEV, Changan Benny Electric Vehicle, Volkswagen ID 3, Renault Zoe, GAC Aion S, Chery eQ, Kia Niro Electric Vehicle, Nissan Leaf, GW Black Cat, Toyota RAV4, Hyundai Kona Electric Vehicle, Xpeng P7 and SAIC Roewe Clever Electric Vehicle.
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