Electric vehicles (EV) sales are accelerating faster than the global average, hitting 64% of passenger vehicle sales by 2030, compared with 42% globally, according to a new report.
BloombergNEF’s annual Electric Vehicle Outlook (EVO) study found EVs made up 29% of passenger vehicle sales in the UK last year, ahead of France (27%) and Germany (13.9%).
Driven by the ZEV Mandate and an open market for Chinese vehicles, EVs are projected to reach 35% of UK car sales by 2025 and 40% in 2026, it reported.
In total, UK EVs will account for 20% of UK electricity demand by 2040, nearly double the global average of 11%, and despite residential electricity prices being some of the most expensive in Europe and public charging costs being the highest.
Globally, the report said China accounts for nearly two thirds of EV sales, followed by Europe at 17% and the US at 7%. Plug-in electric vehicles are set to account for one in four vehicles sold globally this year.
Despite the global growth of EV sales, the revised outlook falls short of previous projections, resulting in 14 million fewer cumulative EV sales over that period.
China extends its lead over Europe and the US as it is the only country where EVs are on average cheaper to buy than comparable ICE vehicles. Outside of China, the UK leads among major car markets and holds the top spot for EV adoption among large countries in Europe, ahead of Germany.
Colin McKerracher, head of clean transport and energy storage at BloombergNEF, and lead author of the report said:
“2024 was a landmark year for electrified transport, with electric vehicles hitting global sales highs and rapidly increasing adoption from emerging markets across Asia and LatAm.
“Despite these positive tailwinds, we see slower EV adoption in the short and long-term due in large part to the changing landscape in the US. This shift in global adoption will also have major impacts on the battery industry, leading to overcapacity in manufacturing.”
Aleksandra O’Donovan, head of electric vehicles at BNEF, said:
“Despite significant leaps in EV adoption globally, stable and comprehensive policy still matters in advancing it further.
“Automakers that lose sight of the longer-term trend towards electrification – supported by falling battery prices and improving economics of EVs – risk being squeezed out of the major car markets.”
Image from Shutterstock
