High gas prices have pushed electric car sales to a tipping point this year, as many drivers turned to fuel-efficient alternatives to save money. By the end of 2022, global EV sales are projected to generate $384bn in revenue, $34bn more than a year ago, and continue growing in 2023.
According to data presented by AugustaFreePress, with more and more people considering EVs, global electric car sales are expected to jump by 20% YoY and generate $462bn in revenue in 2023.
Almost 1.5 million New EVs on the Road in a Year
Battery EVs and plug-in hybrid EVs have both seen substantial sales growth, despite the challenges facing the entire car industry. Even with supply chain bottlenecks and rising production costs, EV sales are still going up fast. Surging gas prices have only fuelled market growth.
Tesla, the largest electric car manufacturer, reported an 80% increase in sales in the year’s first three months. German automakers Volkswagen and Mercedes have also seen a bump in sales for their electric vehicle fleet, up 65% and 37%, respectively. The rising demand for electric cars has continued since then, driving global sales revenues to new highs.
According to Statista Mobility Market Outlook, global EV sales revenues are expected to hit $384bn in 2022, more than double the 2020 figures. In 2023, revenues are projected to jump by almost $79bn to $462bn. By 2025, EV car sales are set to reach nearly $630bn worldwide.
Statistics also show that around 7.1 million EVs will be sold by the end of 2022, up from 6.5 million a year ago. Battery EVs account for 73% of that number. With almost 1.5 million new EVs on the road in a year, total unit sales are expected to hit 8.6 million in 2023. By 2025, this figure is set to touch almost 12 million globally.
The United States and China Make Half of Global EV Sales
While demand for electric cars continues to rise, the average price per unit has dropped. According to a Statista survey, EV cars came with an average price of $55,500 three years ago. In 2022, this figure slipped to $53,900.
As an EV powerhouse, China makes up over 40% of global electric car sales. The country is set to generate $160.4bn in EV car sales revenue this year. In 2023, this figure will jump over $190bn.
The United States, as the second-largest EV market, is forecast to generate $61.1bn from EV sales next year, up from $49bn in 2022. Together, the two markets account for more than half of global EV car sales. As the next three markets, Germany, France, and the United Kingdom account for another 20%.