Global BEV sales double in 2021
In comparison with the previous year, sales of battery electric vehicles (BEVs) increased by 121% in all markets analyzed in 2021. China led the way with sales of almost three million BEVs in the calendar year, up by 172% from 2020, as buyers in that country sought to take advantage of incentives before their planned reduction.
Sales in major European markets also showed substantial growth during the year. New BEV registrations went up by 83% in Germany in 2021, and 76% in the UK. Meanwhile, the United States BEV market, hitherto a sleeping giant, is showing promising signs of growth. Buoyed by certain popular models, BEV sales increased by 62% from the previous year.
Financially stretched after major expenditure during the pandemic, government measures to reduce incentives are inevitable. The impact of this change on the pace of electric vehicle sales growth in 2022 and beyond remains to be seen.
Top findings
- Growth rates in China continued to outperform other regions of the world with sales of almost three million BEVs in 2021.
- Rapid decline of ICE (internal combustion engine) vehicle market share in the European top 5 markets from 92% in 2019 to 60% in 2021.
- BEV market in the US has grown by 62% compared to 2020.
- In 2021, just one in three BEVs sold in China, Europe and the US came from a European OEM.
Electric Vehicle Sales Data
France, Germany, Italy, Spain, and UK
In the fourth quarter of 2021, BEV sales in the top 5 European markets grew by 25% from the corresponding period in 2020. Growth was highest in the UK (58%) and France (37%). Over 2021 as a whole, the highest increases were recorded in Italy (107% – albeit from a comparatively low base), Germany (83%) and the UK (76%). As these figures demonstrate, growth dropped off to a certain degree in the final quarter, although it remained impressive.
An analysis of the trajectory of respective market shares reveals the rapid decline of the internal combustion engine (ICE) vehicle in these countries. In 2019, ICE market share for the European top 5 was 92%. By 2021, it had fallen to 60%. In the UK, it has decreased from 91% to 55% in the same period, and in Germany from 92% to 58%. It seems inevitable that ICE vehicles will constitute a minority of the market in both these countries during 2022.
Focus Market: Turkey
Turkey, as a potential future BEV producer, has voiced major ambitions to become a leading BEV market. While the overall sales of BEVs (2,846 units) and PHEVs (871 units) in 2021 are rather sluggish compared with the biggest European markets, total EVs were able to increase their market share to 7.1% in 2021. EV sales also grew 135% YoY vs. 2020.
China
Growth rates in China continued to outperform other regions of the world in the fourth quarter of 2021. BEV sales more than doubled compared to the equivalent quarter in 2020, as consumers looked to secure their purchase before the reduction in incentives was introduced. Annual BEV sales were up by 172%. However, with ICE market share still at 86% in 2021, the growth potential of the EV market in China remains huge.
Japan
Japan’s EV market still relies almost exclusively on the sale of hybrids. ICE market share for 2021 was 55%, while almost all of the remainder was taken up by hybrids. The BEV market share was less than 1%.
South Korea
With annual sales up by 144% in 2021, the BEV market in South Korea is starting to heat up. Although market share is only at 6%, that figure has trebled in the span of two years.
USA
In Q4 2021, BEV sales increased by 50% in the United States compared to Q4 2020, while PHEV sales grew by 126%. Meanwhile, year-on-year growth for BEVs stood at 62% for 2021; for PHEVs it was 140%, and for hybrids it was 84%.
Inroads into the ICE market share have to date been nowhere near as marked as in other regions of the world. At the end of 2021, ICE market share still stood at 91%.
However, clear signs of sales growth, the proposed increase in tax credits, heavy investment in charging infrastructure, increased BEV pickup announcements, the highly publicized pledges by certain carmakers to focus on electrification, and the examples set by the states of California and New York in committing to sales of only zero-emission cars and light trucks by 2035, all encourage talk of a rapid increase in EV market shares over the coming years.
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