Global sales of electric vehicles increased substantially in 2022. While EVs have been slow to gain market share in the US, their presence in China and Europe is growing at a faster pace. Against this background, global sales of electric vehicles in 2022 for the first time reached 10% of the total number of new cars sold.

This is indicated by data that tracks car sales and global sales of electric vehicles. Analysts estimate that global sales of electric vehicles in the reporting period amounted to about 7.8 million units, up 68% compared to the previous year.

The head of the Chinese division of Volkswagen AG Ralf Brandstätter, in an interview with reporters last week, said that the market for electric vehicles will continue to grow. In his opinion, the Chinese market will soon reach a point after which sales of cars with internal combustion engines will continue to decline, as cars connected to the electric grid will occupy a large part of the market. “Last year, one in four cars we sold in China was plugged in, and this year it will be one in three. We have not yet reached the tipping point, but we expect to reach it between 2025 and 2030,” Brandstetter said.

The share of all-electric cars sold in Europe was 11% last year, and 19% in China. The share of electric and plug-in hybrid cars sold in Europe rose to 20.3% last year. According to the German Automobile Manufacturers Association (VDA), in Germany, the largest car market in the region, the share of electric vehicles accounted for 25% of the total number of cars sold. It is noted that in December in Germany, more electric vehicles were sold than cars with internal combustion engines.

Global new car sales as a whole fell about 1% to 80.6 million units. At the same time, sales growth of nearly 4% in China helped offset sales declines of 8% in the US and 7% in Europe. Europe's largest automaker Volkswagen announced last week that new car sales fell 7% to 8.3 million in 2022, but electric vehicle sales jumped 26% to 572,100 units. Despite the fact that Volkswagen sold the bulk of its electric vehicles in Europe, the largest growth was observed in China and the United States. Some other automakers have reported similar dynamics, with sales of conventional cars declining but sales of electric vehicles rising.

In China, which accounted for two-thirds of global EV sales last year, local manufacturers are slowly gaining market share. Globally, American Tesla remains the leader in sales of electric vehicles, followed by Chinese BYD and SAIC, as well as Volkswagen-owned brands. The U.S. lags behind Europe and China in electric vehicle production, but last year 807,180 all-electric vehicles were sold in the country, raising its market share to 5.8% from 3.2% a year earlier.

Analysts say a repeat of last year's strong performance in the EV market could be difficult as the turbulent economic environment weighs on consumers and EV discounts shrink or disappear entirely.