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Increasing pollution and the threat of global warming have accentuated the need to replace petroleum-
fueled vehicles with emission-free substitutes. After decades of R&D, the industry has found electric
vehicles as the best substitute for conventional vehicles, which has resulted in the emergence of electric
vehicles.

An electric vehicle (EV) uses one or more electric motors for propulsion. Advancements in battery
technology have helped increase the driving range of an electric vehicle. Hence, the popularity of EVs
has grown in the recent past.

Ambitious EV targets and policy support from governments have resulted in the lowering of EV costs. In
addition, factors such as extended vehicle range and improvement in charging infrastructure have
fueled the demand for electric vehicles globally.

Led by China, the Asia Pacific region has the highest sales of electric vehicles. China is focusing on
electric vehicles to deal with the rising vehicle emission in the country. The Chinese government is
providing subsidies for the electrification of vehicles, which, in turn, has increased the sales of electric
vehicles in China. The subsidies are offered for pure electric vehicles and hybrids. Over the years, the
cost of the battery has reduced, which would again have a positive impact on the market for electric
vehicles in China. The Chinese government is providing subsidies on the purchase of an electric car. For
instance, the government subsidy includes passenger car purchasing incentives of RMB 55,000 for BEVs
and RMB 30,000 for PHEVs.

The global electric vehicles sale crossed 2 million units marks in 2018 with China having more than 50%
market share. The growth of the electric vehicle market is driven by government funding, subsidies, and
incentives; growing demand for electric vehicles; increasing concerns of environmental pollution; and
huge investments from automakers in EVs. However, factors such as high price and small distance
covered by EVs and the lack of standardization can restrain the market growth.

GLOBAL ELECTRIC VEHICLE SALES

The Electric Vehicles Initiative (EVI), which is a multi-government policy forum dedicated to accelerating
the introduction and adoption of electric vehicles worldwide, has set a target of reaching an electric car
fleet of 20 million by 2020 globally. The Paris Declaration on Electro-Mobility and Climate Change has
also set a similar global deployment target of 100 million electric cars by 2030.

Electric vehicle charging stations (EVCS) are also known as electric vehicle supply equipment (EVSE) or
electric charging points. It is an infrastructure that uses electricity to charge battery electric vehicles
(BEVs) or plug-in hybrid electric vehicles (PHEVs). The need for electric vehicle charging stations has
grown rapidly because of the increasing adoption of BEVs and PHEVs.  

EV sales are increasing globally, especially in countries such as Japan, China, Germany, France,
Netherlands, Norway, the UK, and the US. These countries, with favorable government policies,
incentives, and infrastructure investment, account for more than 90% of the world’s EV sales. The
electric vehicle sales in North America are projected to be the second largest during the forecast period.
North America is a regional hub for many renowned automotive OEMs, which are known for delivering
quality and high-performance vehicles. OEMs in North America such as Tesla and GM focus on the

development of faster, cleaner, and high-performance electric vehicles. The top-selling electric vehicles
in the US are the Tesla Model S and Nissan Leaf.

China has emerged as a powerhouse in the EV market. Attracted by government subsidies on EVs, more
than 200 companies plan to manufacture and sell electric cars in China. According to Fitch, a leading
rating agency, EV subsidies offered in China are the second best in the world after Norway. Another
initiative known as preferential vehicle licensing system helps EV buyers in China get license plates for
free and without a waiting period. Moreover, the country’s national grid is increasing investment in EV
charging station infrastructure and is expected to spend approximately USD 2.4 billion by 2020 to
further improve the EV charging station infrastructure. Favorable business environmental policies, such
as “Made in China 2025,” are also helping startup companies to enter the EV market in China. For
instance, in December 2017, Iconiq, a Chinese EV startup company, announced that the company will
start the production of its 7-seater SUV electric car—Iconiq 7—in 2019. Another startup, NIO, backed by

Tencent, Baidu, and Xiaomi, launched its 7-seater EV “ES8” in December 2017. The price of the vehicle is
about half of Tesla’s Model X.

The US is estimated to hold the largest share in the North American electric vehicle market. The US
automotive industry is inclined toward innovation, technology, and development of safe and
comfortable automobiles. The increasing production of electric vehicles such as BEV, PHEV, and HEV is
expected to drive the market for electric vehicle infrastructure in the country. Electric vehicle
manufacturing companies such as Tesla, GM, and Nissan have a major presence in the country.
Additionally, major providers of electric vehicle charging infrastructure such as Car Charging Group and
ChargePoint have a significant presence in the country. Battery manufacturers are also planning to
expand their presence in the country.

Norway has witnessed full commercialization of the electric vehicle industry due to the incentives and
tax breaks given by the government. Also, electric vehicles are exempted from road tax, purchase tax,
registration tax, import tax, and annual tax. Electric vehicle boom in Norway has resulted in the
emergence of the e-mobility value chain, which comprises charging infrastructure, electricity
manufacturers, and charging station owners.

Name: Swati Gupta.
Swati Gupta has 3+ years’ experience in Primary & Secondary Market Research, Business Analysis,
Market Trend Mapping & Forecast, Competitive Intelligence etc.
As a Research Analyst at MarketsandMarkets, Swati is responsible for report making, data analysis, data
forecasting, handling consults and ad-hoc client requests and diligent with strong problem solving to
build information products aligned with client’s requirements.