Global electric vehicle market share continues to rise
In the first quarter of 2023, 28% of vehicles sold across analyzed markets were electric vehicles (EVs), including battery electric vehicles (BEVs), plug-in hybrids (PHEVs), and hybrids. By the third quarter of 2024, this figure has risen to 41%. Although progress varies among different markets, the overall growth of the electric vehicle market is encouraging.
A significant factor behind this increase is the rapid expansion of the Chinese PHEV market, which has more than tripled in size since early 2023. Additionally, China's PHEV exports have surged, more than doubling year-on-year during the first three quarters of 2024. The European Union attributes this growth to state subsidies, which they believe give Chinese OEMs an unfair cost advantage. As a result, the EU is expected to impose tariffs on Chinese-made imports unless there is a last-minute change. In response, some Chinese manufacturers are planning to establish production facilities in Europe to avoid these tariffs.
Other regions have also seen notable advancements in the third quarter. In the top five European markets, EV sales now account for 56% of all new vehicle registrations. The United Kingdom leads within the European top five, with a BEV market share of 20%. The United States is also making steady progress, with its total EV market share surpassing 20% for the first time in Q3-2024.
Top findings
- In Europe, a decline in BEV sales is anticipated in the traditionally strong fourth quarter as many OEMs reduce their combustion engine inventories to better meet stricter CO2 targets starting in 2025
- To avoid potential tariffs, Chinese OEMs are likely to significantly expand their electric vehicle production in Europe
- By 2030, Chinese OEMs could produce over 700,000 passenger cars in Europe, accounting for more than 5% of the continent's total production
- Germany, traditionally a key market for automotive sales, has lost its leading position but showed significant growth in September
Electric vehicle sales data
France, Germany, Italy, Spain, and UK
Electric vehicles (EVs) are now leading the market in the top five European countries, capturing a market share of 56% in the third quarter of 2024. Hybrids alone account for 35% of this share, driven largely by the increasing adoption of mild hybrids in many models.
However, BEV and PHEV sales in these top five markets saw significant declines, with BEV sales down 19% and PHEV sales down 8% in Q3 2024 vs. Q3 2023. The decline in BEV sales is primarily due to the German market, which experienced a 45% year-on-year decrease in the third quarter. This trend in Germany has been consistent throughout 2024, following the abrupt end of the BEV subsidy program at the end of 2023.
In contrast, Spain and the UK have shown consistent growth in BEV sales. Both countries reported a 20% increase in Q3 2024 compared to the same period last year. The UK's BEV market share, bolstered by the government’s Zero Emission Vehicle (ZEV) mandate, reached 20% in September, the highest among the top five European markets.
Other European markets
Among other European countries, only Norway and the Netherlands achieved year-on-year BEV sales growth in Q3, with increases of 19% and 11% respectively. Norway's BEV market share now stands at a staggering 95%. Following Norway, Sweden and the Netherlands have notable BEV market shares of 38% and 35% respectively.
Total EV market share in the United States has now exceeded 20% for the first time.
BEV sales grew by 11% in the third quarter of 2024 when compared with the equivalent period last year. BEV market share now stands at 9%. Several factors indicate that this percentage will continue to rise steadily – a wider array of products, a higher proportion of vehicles meeting the critical minerals and battery components requirements for the $7,500 tax credit, a rapid development of charging infrastructure, and the expansion of Tesla’s Supercharger network to accommodate non-Tesla BEVs.
Although some PHEV models qualify for a tax credit, their generally higher purchase prices have affected their sales. PHEV sales dropped by 36% in Q3 2024 vs. Q3 2023, and their market share remains at just 1%. Hybrid sales grew by 28% during the same period, achieving a market share of 11%.
China
The EV market in China expanded by 33% in the third quarter of 2024 compared to the same period last year. This growth occurred despite a 9% decline in overall powertrain sales during the same timeframe. The primary driver of this growth was PHEV sales, which surged by 79% in Q3 2024 compared to Q3 2023. BEV sales also saw a 15% increase over the same period. As a result, the combined market share of BEVs and PHEVs has now exceeded 50%, nearly doubling from 26% in the first quarter of 2023.
Japan
The Japanese EV market is predominantly driven by hybrid vehicles, which held a market share of 59% in Q3 2024. The combined market share of BEVs and PHEVs is only 3%. Hybrid sales grew by 11% year-over-year in Q3 2024, while sales of BEVs and PHEVs fell by 14% and 35%, respectively.
South Korea
BEV sales increased by 18% in Q3 2024 compared to Q3 2023, and hybrid sales grew by 36%. The market shares for BEVs and hybrids are 11% and 29%, respectively. Conversely, PHEVs have seen a decline in popularity throughout 2024, with sales dropping by 15% year-over-year in Q3 2024.
About the „Electric Vehicle Sales Review“ by PwC and Strategy&
PwC Autofacts® and Strategy& have analyzed electric vehicle sales worldwide in the third quarter of 2024.
Steven van Arsdale also contributed to this report.
