In 2012, about 130 000 electric cars were sold globally. Today, that same amount is moved in the space of a single week, says a new International Energy Agency (IEA) report, authored by Clean Energy Technologies analyst Leonardo Paoli and Energy Technology Policy Division head Timur Gül.

In this report, electric vehicles (EVs) refer to electric light-duty vehicles, which include passenger cars and light commercial vehicles. It also includes battery electric and plug-in hybrid vehicles.

The report notes that EV sales have “been particularly impressive” over the last three years, even as the global pandemic shrank the market for conventional cars, and as manufacturers started grappling with supply chain bottlenecks.

In 2019, 2.2-million EVs were sold, representing 2.5% of global car sales.

In 2020, the overall car market contracted, but EV sales bucked the trend, rising to three-million and representing 4.1% of total car sales.

In 2021, EV sales more than doubled to 6.6-million, representing close to 9% of the global car market, and more than tripling their market share from two years earlier.

More importantly, all the net growth in global car sales in 2021 came from EVs, states the IEA report.

“We estimate there are now around 16-million electric cars on the road worldwide, consuming roughly 30 terawatt-hours of electricity per year, the equivalent of all the electricity generated in Ireland.”

China Leads
China led global growth in EV markets in 2021 as sales nearly tripled to 3.4-million units. In other words, more EVs were sold in 2021 in China alone than were sold in the entire world in 2020.

This yearly increase is the fastest EV market growth in China since 2015, significantly outpacing the more gradual recovery of the country’s overall car market.

EVs’ share of the overall market on a monthly basis leaped from 7.2% in January, to about 20% in December.

The Chinese government’s official target is for EVs to reach a market share of 20% in 2025, and their performance in 2021 suggests they are well on track to do so, says the IEA.

“The government extended EV subsidies for a further two years after the pandemic broke out, albeit with a planned reduction of 10% in 2021, and 30% in 2022.

“The growth in 2021 sales, despite the scaled-back subsidies, suggests China’s EV market may be starting to mature.

“But it could also reflect customers rushing to secure subsidies at 2021 levels before they declined at the start of 2022.”

Another important factor was the expanded range of small-car offerings, notes the IEA report.

“The tiny Wuling Hongguang Mini EV is not eligible for subsidies, but was still among the bestselling models in China last year, with just under 400 000 units sold,

offering an affordable entry point to the market for new customers.”

Europe and SA
In Europe, EV sales increased by nearly 70% in 2021, to 2.3-million, with about half these being plug-in hybrids.

This is significant to South African vehicle manufacturers, as Europe is the country’s main new-vehicle export market.

The surge in EV sales in Europe last year was partially driven by new carbon dioxide (CO2) emissions standards.

Purchase subsidies for EVs were also increased and expanded in most major European markets.

Monthly sales in 2021 were the highest in the last quarter of the year, peaking in December, when European sales of EVs surpassed diesel vehicles for the first time, with a 21% market share.

In absolute terms, the largest EV market in Europe in 2021 was Germany, where more than one in three new cars sold in November and December was electric.

Overall, electric cars accounted for 17% of total European sales in 2021, but there were significant differences across markets.

Norway at 72%, and Sweden and the Netherlands at 45% and 30% respectively, sat atop global rankings.

At 25%, Germany had by far the highest market share among large European markets, followed by the UK and France (both about 15%), Italy (8.8%) and Spain (6.5%).

The US made an impressive return to the EV market in 2021 as sales more than doubled to surpass half-a-million units, notes the IEA.

“The overall US car market recovered as well, but electric cars doubled their share to 4.5%.”

The US electric car market is still mostly dominated by Tesla, which accounts for more than half of all EVs sold.

Overall, China, Europe and the US account for roughly two-thirds of the overall car market, but about 90% of electric car sales.

In most other markets, EVs account for less than 2% of overall sales, and in large developing economies such as Brazil, India and Indonesia, the share is still below 1%, without any significant increase over the past year.

“While sales of electric scooters and buses are expanding in these countries, the price premium attached to electric cars and a lack of charging infrastructure are key reasons for the sluggish uptake,” says the IEA.

In Japan, electric car sales also barely increased, with their market share remaining below 1% over the past three years.

Korea and Australia show the greatest dynamism among smaller markets. In Korea, electric car sales more than doubled in 2021 after two years without growth, increasing their market share to 8%.

Electric car sales in Australia also more than tripled in 2021, albeit from a low baseline, bringing their market share above 2%.

“Government policies remain the key driving force for global electric car markets, but their dynamism in 2021 also reflects a very active year on the part of the automotive industry.

“Announcements, targets and new model launches have helped strengthen the view that the future of cars is electric.”