2023 was an amazing year for EV growth, surpassing 14 million units sold globally. Whether due to public policy, regulatory changes, or lower cost of ownership, consumers are embracing EVs, BEVs, PHEVs, and FCEVs at a steady pace. So what should we expect in 2024? In this response to last year’s article, we round up the best and brightest electric vehicle statistics from 2023, as we look forward to the year ahead.
15% of worldwide car sales are EVs
(Source: Bloomberg NEF)
Clean energy proponents, rejoice! In an exciting update to last year’s report, electric car sales now make up more than 15% of the global passenger vehicle market, up from 14% in 2022, and 8.9% in 2021.
In tandem, traditional gas-powered vehicle sales (or those with an internal combustion engine, or ICE) dropped to 64.2 million units, a decrease of 2.4 million units since 2021.
Leading this charge is China, with 27% of all cars sold in the first six months of 2023 classified as electric. Europe follows closely behind with 22% of total vehicle sales, a significant jump spurred by legislation introduced in and after 2019.
Within Europe, the most sizable changes in 1H come from:
👉 France: 25% share of sales
👉 United Kingdom: 24% share of sales
👉 Germany: 22% share of sales
👉 Italy: 9% share of sales
North America falls behind at 8.8%, and Japan even further at 3.6% — but luckily, these numbers are expected to climb in 2024.
Almost 50% of new car registrations in the EU were electric
(Source: Reuters)
New data from the European Union paints a promising picture for the future of EV growth in the region. Between January and November 2023, nearly half of all new passenger car registrations (47.6%) were electric. These include all-electric models, plug-in hybrids, and fully hybrid vehicles.
In total, new car registrations in the EU were up 4.6% from last year, with 144,378 all-electric EVs registered (a 16.4% increase from 2022).
As we anticipate 2024 trends, we can already see a clear consumer preference for hybrid vehicles, comprising 1.5 million new vehicle registrations in Germany, France, and Italy. Despite supply chain challenges and rising costs, manufacturers are scrambling to gain a piece of the pie — with Volkswagen Group (26.1%), Stellantis (18.2%), Renault Group (10.8%), and Hyundai Group (8.5%) holding the largest market share.
The automotive retail journey is changing
(Source: McKinsey & Company)
EV buyers want to be wooed in 2024. 😍
In McKinsey’s far-reaching Future of Auto Retail survey, 4,000+ global respondents demand tailored, personal, and intentional experiences from their retailer of choice.
With more consumers considering an EV than ever before, new retail formats, test drives, and digital mediums will be increasingly important to car manufacturers looking to stand out amidst a crowded market — opening the door to new players with innovative ideas.
As a sign of the times, over 50% of those polled stated that they would be willing to purchase from a new brand when making the switch to an EV. For BEVs, this figure rose to 70%.
Due in part to a lackluster purchasing experience, consumers are ditching brand loyalty in favor of additional trims or model options (33%), customizable features (32%), flexibility in configurations post-purchase (28%), and the all-important test drive (32%).
Smartcar’s own 2023 State of Connected Car Apps validates this data, as our findings concluded that of United States respondents, “51% say they would consider switching to a different vehicle model or brand if they could leverage a larger ecosystem of car apps and services.”
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Although the online purchasing space is growing, 87% of respondents still want to test drive before buying, citing evaluating performance (61%) and comparing traditional cars with EVs (45%) as reasons for face time. All in all, 44% of consumers want a personal connection, and ideally, a higher chance of price negotiation, with their auto dealer.
In the coming year, we can evaluate who will be successful in the EV market based on their willingness to adapt to consumer preferences, anticipate value, and proactively respond to the changing landscape of the automotive buyer journey.
Introducing the immediate $7,500 vehicle tax credit
(Source: Forbes)
Gone are the days of filing and waiting months for an EV tax credit refund! In January 2024, the IRS will begin allowing immediate, day-of applications for a down payment on new (and some pre-owned) electric vehicle purchases. 💵
To use, qualified buyers may transfer their claimed credit to a verified auto dealer. From there, the dealership will submit the EV sales receipt to the IRS online, receiving a direct deposit payment within three business days. Buyers must prove eligibility pre-purchase, and file their income tax return as normal (as proof).
This initiative, a product of the 2022 Inflation Reduction Act, serves to increase EV adoption by reducing barriers to entry for would-be buyers. In line with President Biden’s larger “Build Back Better” plan, the credit aims to offset dealer markups, inflation, and rising MSRPs, reducing sticker shock, particularly for younger or first-time EV buyers.
To see if you or your vehicle is eligible for the credit, view the requirements here.
BYD overtakes Tesla models in Q4 EV sales
(Source: BBC)
The EV market is heating up for Tesla, as China’s BYD emerges as a formidable competitor worldwide. Although Tesla came out on top of total vehicle sales in 2023, BYD sold more electric vehicles in the last three months than the established EV giant.
With 526,000 BEVs sold in Q4, BYD’s advantage comes from its in-house battery operation, allowing the company to cut costs internally without relying on third-party manufacturers. In December, these cuts gave rise to a 70% increase in sales.
But what does this mean for Tesla? 🤔
Although Tesla reached 1.8 million deliveries, an increase from 2022, their end performance fell short of initial expectations. In an effort to meet a 2 million delivery goal, Tesla repeatedly lowered buying costs in an attempt to entice buyers.
As Tesla’s EV market share falls to 50%, additional players like Nissan, Mercedes, Volvo, and Hyundai experienced 200%+ growth as compared to 2022. With brand-new models in a variety of trims and price ranges, Kelley Blue Book estimates that the number of EVs available to purchase will have doubled by 2027.
Meanwhile, data shows that Chinese consumers are more likely to purchase an EV, especially online — giving BYD another advantage as those in North America continue to show hesitation. In 2024, will BYD pull ahead of Tesla in the EV auto race?
Stepping into 2024
The above implications, and how they will affect the future of transportation, are significant.
Smartcar works with pioneers in the mobility sector, including private companies, energy providers, government agencies, and end-consumers to effectively promote and utilize EVs for all. Our EV APIs already play a pivotal role in enabling the development of applications for emission-free car sharing and rentals, mileage-based insurance, intelligent EV charging, and other industries.
If you’re interested in staying up-to-date on the latest EV industry trends, subscribe to our newsletter, or book a meeting with our team to learn how Smartcar’s APIs may work for you.
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