Promoting the shift to more sustainable electric vehicles away from polluting conventional cars has been very challenging initially.
In a significant turn of events, the world seems to be more accepting now of the new technology in the transportation sector. According to Bloomberg Green analysis, 23 countries, including Canada, have successfully passed the 5% crucial tipping point for battery-electric models. This notable market share signifies the technology’s mass adoption commencement.
Other countries
Bloomberg Green noted that their team initially completed the global EV adoption rates analysis in 2022. At that time, they only found 19 countries to pass the 5% new EV sales tipping point.
The 2022 list includes the US, China, and the majority of Western Europe. The rapid EV adoption in these markets demonstrated the technology’s ability to expand from just 5% to an astounding 25% of the market in just four years.
Meanwhile, the latest analysis added five new countries to the list. It includes Canada, Australia, Spain, Thailand and Hungary.
Significance
The report noted that most currently popular technologies, like TVs, smartphones, and LED lightbulbs, have an S-shaped adoption curve. Simply put, they initially had slow sales, then rapidly expanded as they became mainstream.
The 5% market share of electric vehicles represents the inflection point. However, various countries have different timelines for reaching this threshold. Nonetheless, its mass adoption may soon ensue once governments and companies solve the most common issues, like high costs and lack of charging infrastructures, among others.
The US’ achievement of the 5% tipping point apparently occurred in late 2021. It seems late for such a powerful economy. However, it must be noted that Americans prefer vehicles with longer range as they regularly drive around. Considering the improvement of EV batteries, the country’s EV sales have surged 42% YoY in Q2 2023. The imminent arrival of Tesla’s Cybertruck may soon boost the US EV industry.
Meanwhile, India is also set to cross the tipping point. The third-largest automotive industry witnessed EVs account for 3% of its new car sales in Q2 2023, up twofold in just six months. This significant progress is primarily due to local automakers’ penetration in the segment. Tesla’s arrival will also undoubtedly aid the country in reaching the 5% threshold.
How do governments support the EV uptake?
Interestingly, the US, China, and Europe account for 90% of global EV sales so far. Therefore, other countries accountable for approximately one-third of new global auto sales have not yet crossed the 5% tipping point.
Nonetheless, the significant advancement of EV uptake is primarily due to the government’s efforts to promote the technology. For instance, the US Government imposed the 2021 Bipartisan Infrastructure Law, and 2022 Inflation Reduction Act to aid its 2030 target of having EVs and hybrids account for 50% of new car sales. Moreover, Benchmark Materials asserted that these legislations also boosted the country’s battery pipeline through 2030 to 67% in 2022.
Governments worldwide have also developed and implemented varying fuel emissions standards to further promote the adoption of greener transportation.
See Also:
- JD Power seeks to measure EV adoption progress with its EV Index
- China Update: EV Adoption rate, Tesla and Chinese EV makers market share
- Australia to impose vehicle pollution standards to accelerate its EV adoption
- Regulations and Policies in Indian State are driving EV adoption
- China is launching a pilot program to increase EV adoption in the public sectors
The wide adoption of electric vehicles has continuously progressed as governments and the industry team up to promote the technology. Their collaborative efforts undoubtedly urged more customers to join the shift, considering the many incentives and discounts currently offered.
