Although Tesla‘s stock is plummeting, the electric car sector appears to have advanced past forecasts last year, and it may be on track to exceed even more projections in the years to come. The Wall Street Journal claimed that 7.8 million electric vehicles were sold globally in 2022, a 68% increase over 2021. According to WSJ, the increase made it possible for electric vehicles to take a 10% worldwide market share for the first time in the automotive sector.
10% of the market may not seem like much, but the industry is expanding more quickly than anticipated. The International Energy Agency, for instance, forecasted in 2021 that it’d take until 2030 for the electric vehicle industry to account for between 7% to 12% of worldwide vehicle sales. According to data from LMC Automotive, which was cited by the Wall Street Journal, electric vehicle sales are already 19% and 11% of all auto sales in China and Europe, respectively.
In the years to come, according to more recent predictions, the EV market will advance much further. By 2030, its global market share might reach 22%. By the end of the decade, the market share of the sector could be close to 40%.
By 2030, the US Administration hopes to have sold half of all vehicles in the US as electric vehicles. And it did so by including a $7,500 tax credit for buying an EV in last year’s Inflation Reduction Act. Despite these expectations, there are indications that EV demand is falling, especially in the US. For instance, Tesla has reduced the price of some of its best models by up to 20% in response to the reduced interest rate desire.
Business executives have noticed. The median projection was that by 2030, electric vehicles would have a market share of 37% in the US, falling from 62% in 2021, according to a KPMG study of over 900 executives from the auto sector. The reduction was attributed by KPMG to problems with affordability and production that would hinder the adoption of EVs.