The electrification of the auto industry is gathering pace, particularly in Europe, where the sale of new cars running on petrol and diesel will end in 2035.
But challenges remain around their production, affordability and whether enough infrastructure can be put in place to persuade drivers to make the switch.
China in pole position
European carmakers were hobbled in 2022 by a lack of semiconductors, the computer chips that are key for numerous systems on all types of cars.
But electric car sales held up quite well.
China is a leader in the electrification of cars, with favourable policies and EV sales that have doubled in 2022.
But experts have warned sales could slow there in 2023 alongside shifts in the Chinese economy.
“China’s BEV (battery electric vehicle) growth will moderate in 2023, after a meteoric rise in 2022 of more than 100 percent year-on-year,” said Al Bedwell, director of Global Powertrain at LMC Automotive.
“The country’s slowing economy and unavoidable retail price increases will dampen Chinese BEV and plug-in hybrid demand, though much volume will still be added.”
But he predicts sales in Europe should pick up speed this year after growing by only 21 percent last year due to supply constraints.
“Europe’s sluggish 2022 BEV growth will accelerate to 50 percent in 2023 as the chip crisis eases,” said Bedwell, though he said it will still continue to impact vehicle availability through 2023.
The United States is giving its electric car industry a major boost with the passage of a $370 billion green energy bill that includes tax cuts for US-made electric cars and batteries.
In total, one in eight cars sold worldwide in 2023 could be electric.
Tesla dominance
Elon Musk’s Tesla remains the biggest seller of electric cars globally. Tesla sold 1.3 million units in 2022, driven by its Model Y SUV. It predicts a 37 percent increase for 2023 to 1.8 million cars.
