Countries with major demand for electric vehicles - Auto Wiki (2023)

Countries with major demand for electric vehicles: During 19th century, when electricity was among the most preferred methods for automobile propulsion, electric vehicles came in to existence. EVs also known as electric drive vehicle generally uses one or more electric motors for propulsion. Increasing air pollution and carbon emissions, along with shortage of energy are the reasons that are making electric vehicles more popular among people nowadays. The market for these vehicles has been growing across the world. Even many countries are making an aim to put manyelectric vehicleson road as early as possible which will be a key milestone towards dramatically reducing dependence on oil.

Countries are taking effective steps to increase demands ofelectric vehiclesin order to reduce petroleum dependence, enhancing environmental awareness and promoting transportation sustainability. To promote the sale of electric vehicles, countries are giving perks to buyers of these vehicles. For instance, in France, electric vehicles are exempt from the company car tax. When it comes to EV market share, Norway is the king followed by Netherlands right behind. Here, we bring upon the top 10 countries with major demand for electric vehicles.


Norway is currently the largest electric vehicle market in the world. The roads of the country are filled withNissan Leafand Tesla Model S. Electric vehicle’s comfort and convenience makes them more popular among people. The country has around 3,500 electric charging posts and 100-fast charging stations, thus offers the good infrastructure to electric car owners. Along with this, citizens get other incentives too. It is allowed to park electric cars for free in city spaces.

Also, they do not have to pay city congestion charges that other car owners have to pay. Even EV drivers are allowed to drive their vehicle in the bus lane. But the main reason is the tax structure. EVs in Norway aren’t subject to import taxes. The increasing cost of fuels also contributed towards the increase in the demand for electric vehicles in the nation. Norwegians hold a strong place for electric vehicles and it has been predicted that by 2020 there will be around 200,000 electric vehicles in the country.

(Video) Electric car use by country | Wikipedia audio article


Even though the Netherlands is geographically small, but the demand for EVs in the country is very high. Listing behind Norway, the Netherlands holds a major market for electric vehicles. To be particular, the country is the king of plug-inhybrids. In the year 2013, there were around 1.71 plug-in electric vehicles per 1000 people in the country. Around 5,749 all electric cars were registered in the country as of September 2014. Volvo V60 PHEV andMitsubishi OutlanderPHEV were the two popular electric vehicle models in the year 2014.

There are many vehicles in the country. For every 2 person, there is almost one vehicle, excluding public transports. Thus, there is large potential to replace fuel combustion vehicles with electric vehicles in the country. In the Netherlands, electric vehicles are exempted from BPM, tax that is to be paid when registering a vehicle for the first time in the country and is based on vehicle’s CO2 emission. Along with this, EVs are also exempted from an annual motor vehicle tax (MRB). To fulfill its commitment of environmental stability, the government is planning to establish 200 recharging stations in the country by this year end.


Europe is one of the largest markets for electric vehicles. France offers a one-time bonus for purchasing EVs. On buying an electric car in France, the buyer gets €7,000 cash incentive (the amount of the incentive cannot exceed 30% of the vehicle purchase price including VAT, and battery cost). In France, electric vehicles are also exempt from the company car tax. Also, electricity prices in the country are a bit lower, thus results in high fuel cost savings when one switches to electric vehicles.

There are around 6,000 charging stations for electric vehicles in the country and it is planning to increase that to 8,000 by the end of the year. Under Paris’s “Autolib” program, the government puts over 2000 electric vehicles and 4000 charge points on the city’s street alone. Out of all electric vehicles, Renault Zoe and Nissan Leaf are the popular electric vehicles in the country.


Iceland is an island country at the confluence of the North Atlantic and Arctic Oceans. Electric cars make much more sense in Ireland as electricity is much cheaper in the country whereas gasoline cost much more. There are certain perks that electric vehicle drivers get such as access to free electricity at charging stations, free parking along with tax discounts on importation and sales tax discount. Thus, maintaining an electric car in the country is much more economical. To increase the purchase of electric vehicles in the country, the government has reduced VAT and import taxes. As Iceland does not have much population, thus charging the vehicle is not a big deal in the country.

(Video) Electric cars | Wikipedia audio article

United States:

In 2010,Nissanand Chevy introduced PEVs in the U.S. market by launching Chevy Volt and Nissan Leaf. As of September 2014, the total stock of PEVs (Plug-in electric vehicles) in the country was around 259,949. The U.S. market of electric vehicles is affected strongly by regulations such as California regulations and National greenhouse gas emissions standards. In 2014, the sales of EVs increased by 25% in comparison to the year before. The country provides a one-time federal bonus on the purchase of electric vehicles. Additional state bonus and incentives are also provided by some states such as California in order to encourage EV purchase.


Denmark is one of the most environmentally conscious nations. Nissan Leaf rules the country, followed by VW e-Up and Tesla Model S. In Denmark, registration tax for the vehicles is very high which is based on the vehicle’s value, however BEVs weighing less than 2000kg are exempted from registration tax. In Demark, incentives for private cars BEVs are higher than for company car BEVs. Overall tax compensation provided in the country is around 15,500 EUR for (private) and 3,300 EUR (company) for the BEV. And for PHEV, it is 22,800 EUR (private) and 3,400 EUR (company). Beside all incentives, there is lower acceptance of BEVs among private consumers rather than on the part of fleet owners.


Sweden is a good market for adopting new technologies as Swedes are easy adopters and are open for alternate vehicles. Even the prices of electricity are much lower in comparison with other European countries. Thus, driving electric vehicles in the country are not very expensive. Mitsubishi Outlander PHEV is the most selling electric car in Sweden.

To promote sale of electric vehicles in the country, government provides concession to electric car buyers. The exemption is given to electric vehicles with energy consumption of 37kWh per 100 km or less from the annual circulation tax for a period of five years from first registration. The exemption is also given to electric hybrid and plug-in hybrid vehicles. Reduction in company car taxation is also given. Another bonus provided by the government is “Super green car premium” (Supermiljöbilspremie) of SEK 40,000 is given on the purchase of cars (both private and company) with CO2 emission of maximum 50 g/km.

United Kingdom:

The electric car market in UK is still small, but has strong vision for the coming years. Government is taking steps to increase the selling of electric cars in the country. Since 2011, on purchase of new electric car (BEV or PHEV emitting less than 75g CO2/km or a Fuel Cell Vehicle) receives a one-time grant of 25% of the car, up to a maximum of 5,000 EUR. Cars bought for both private and business purpose are eligible for this grant. Also, on the purchase of electric van, a 20% off of the cost is given on up to a maximum of 8,000 EUR.

(Video) Electric vehicle | Wikipedia audio article

Electric vehicles are exempt from annual circulation tax. This is based on CO2 emissions and all vehicles with emission below 100g/km are exempt from it. According to December 2014 statistics; there were around 24,500 plug-in electric vehicles in the country. The most popular electric vehicle in the country is Nissan Leaf.


In Germany there are no direct purchase incentives for PEVs; however the country does provide several other incentives. For the first ten years since the first registration, electric vehicles are exempted from the annual circulation tax. Also, like the Netherlands, company cars are treated as taxable income. There are even some free charging stations in the country. Year-to-date sales of PEVs in 2014 (September) is at 9,270 vehicles, which represents about 0.46% of the new vehicle market. In 2009, the government adopted the National Electro mobility Development Plan with the goal to make Germany as the “world’s leading supplier and market for electric mobility by 2020.”


Estonia is a small Baltic country in the northeast of Europe. The country is one of the least populous states in the European Union. To increase the sale of more and more electric vehicles, the country’s government offers substantial incentives (up to 50%) on the purchase of electric vehicles, which are very pricey. Tesla Model S rules the road of this country. Estonia is the first country in the world to open a nationwide electric vehicle fast-charging network. The country has around 619 all electric cars, out of which around 500 are for public and 100 by private people and companies.

Countries with major demand for electric vehicles - Auto Wiki (1)

Buyers now have many choices than before when it comes to buying an electric vehicle. There are many EVs in different sizes from two-passenger to midsized to luxury car. It is quite difficult to tell where the future will take electric vehicles, but it is evident that they hold a potential of creating sustainable environment.

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(Video) Plug-in electric vehicles in the United States | Wikipedia audio article
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Which country has highest demand for electric cars? ›

China is the frontrunner, with 60% of global electric car sales taking place there in 2022. Today, more than half of all electric cars on the road worldwide are in China. Europe and the United States, the second and third largest markets, both saw strong growth with sales increasing 15% and 55% respectively in 2022.

Does the world have enough resources for electric vehicles? ›

While many experts say there are enough resources on earth for the EV industry, many of those have yet to be tapped into, especially in the US. Getting access to those materials (and being able to use them in electric cars) requires costly and time-consuming permitting, construction, extraction, and other processes.

Who dominates the electric vehicle market? ›

Tesla's vehicles made up four out of six of the most popular U.S. EVs sold in the first nine months of 2022, according to data from a recent Kelley Blue Book report (via Statista).

Why are electric cars in high demand? ›

Demand for EVs has grown markedly over the past decade thanks to heightened environmental concerns, greater availability of models, increased cost competitiveness with conventional gas vehicles, and improved vehicle ranges.

Is there enough lithium on earth for electric cars? ›

While the world does have enough lithium to power the electric vehicle revolution, it's less a question of quantity, and more a question of accessibility. Earth has approximately 88 million tonnes of lithium, but only one-quarter is economically viable to mine as reserves.

Is the world pushing for electric cars? ›

The adoption of electric vehicles is rising sharply as the global push for net-zero carbon emissions accelerates. EVs will make up about half of new car sales worldwide by 2035, according to Goldman Sachs Research.

Who is the world's largest producer of electric vehicles? ›

1. Tesla. With a market cap of over $580 billion, Tesla is the largest EV manufacturer in the world. There are various attributes that differentiate Tesla from other automakers, but the most notable is its supply chain.

Is China leading in electric cars? ›

China is both the largest auto and electric vehicle market in the world, home to an estimated 200 EV manufacturers. Sales of all new vehicles are projected to grow 3% this year to 27.6 million units, according to the China Association of Automobile Manufacturers. EV sales in China far surpass other markets.

What state buys the most electric cars? ›

In 2020, California had 42% of all EV registrations in the U.S., totaling 425,300. This number grew 32.40% to 563,070 in 2021 and will likely continue to increase at rapid pace in the future.

What percentage of electric car batteries are made in China? ›

China produces three-quarters of all lithium-ion batteries and possesses 70 percent of “production capacity” for cathodes and 85 percent for anodes, both vital components of batteries, according to an International Energy Agency report released in July.

Can the US power grid handle electric cars? ›

Can the power grid actually handle that many electric cars? In simplest terms, yes, it can. But the deeper answer is a bit more complicated. The capacity is there, but to truly handle this new surge in EV grid demand, it will take planning on the part of utility companies across the U.S.

What year will electric cars be mandatory? ›

Yes. California is only requiring that all NEW cars sold in 2035 and beyond are zero-emission vehicles which includes battery electric vehicles, plug-in hybrid electric vehicles and fuel cell electric vehicles.

Why are electric cars not the future? ›

Electric-powered cars are not on the road to a renewable and clean future. They are powered by lithium-ion batteries that will pose a real threat to the environment if continued to be manufactured at the rate of current gasoline-powered cars.

What happens to electric cars when lithium runs out? ›

Running Out of Lithium

An inability to produce enough lithium would result in severe delays to the roll out and implementation of electric transport and renewable power – as such, it is fair to question whether there is enough of the prized element to meet global needs.

Who has the most lithium on earth? ›

Chile holds the world's largest lithium reserves and is the world's second-largest producer. Lithium is currently produced from hard rock or brine mines.

How many pounds of lithium does it take to make an electric car battery? ›

A typical EV battery has about 8 kilograms of lithium, 14 kilograms of cobalt, and 20 kilograms of manganese, although this can often be much more depending on the battery size – a Tesla Model S' battery, for example, contains around 62.6 kg (138 pounds) of lithium.

Why electric cars won t save the world? ›

As electric cars are much heavier than gas-guzzlers, they use more energy per person transported, which is environmentally wasteful. Battery metals mining and production are monopolized by China and/or suffer from horrible working conditions. It also harms the soil and causes air contamination.

What is the biggest problem with electric cars? ›

From battery issues to software and electronic problems, there are a variety of potential problems that are arising with electric vehicles. In a survey by consumer testing site Which, it was found EVs are the least reliable fuel type and spend longer off the road than other cars when they need repairs.

Why America should switch to electric cars? ›

Fewer gas-powered cars and more EVs on the road will ultimately lead to cleaner air and a healthier environment for us all. Swapping out your gas-powered car for an electric car is a great way you can reduce your transportation emissions and help fight climate change.

Who uses electric vehicles the most? ›

As of June 2022, China had the largest stock of highway legal plug-in passenger cars with 10 million units, 46% of the global fleet in use.

Who produces the most electric cars in the US? ›

#1 – Tesla

The EV giant produced over 439,000 and delivered over 405,000 vehicles in the fourth quarter of 2022. In 2022, its deliveries were 1.31 million while production increased to 1.37 million, according to the firm's latest full-year results.

What is Tesla's biggest competitor? ›

Biggest Tesla Competitors & Rivals You Should Know
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3 days ago

What country buys the most Teslas? ›

Tesla (TSLA. O) sold 267,171 Model Ys in the first quarter of this year, of which 94,469 were sold in China, higher than 83,664 in the United States and 71,114 in Europe, according the data. Overall, the United States was the biggest market for Tesla, which does not provide regional breakdown of its global sales.

Is China currently the world's largest market for electric cars? ›

China is already the world's largest market for both electric vehicles and cars in general. The car market is expected to grow between 4 per cent and 5 per cent to 23 million vehicles this year. Last year, China accounted for almost 60 per cent of global EV sales.

Which country has the most electric cars 2023? ›

China Electric Car Sales

In Q1 2023 China led the market with 4.269 million electric vehicles sold. In fact, the share of domestic EV sales almost reached 20%.

How much profit does Tesla make from China? ›

Chinese market contributes 32% sales and 21% revenue for Tesla in Q1 - Global Times.

What percentage of Tesla does China own? ›

China accounts for roughly 40 percent of Tesla's sales. Concern about the carmaker's performance there has been a significant factor in the precipitous decline of Tesla's share price last year.

Who are the main buyers of Tesla? ›

Buyer Profile
Buyer Profile
Income $50,000-$99,999:17.2%
Income over $100,000:77.3%
18-44 yrs. old:33.2%
45-64 yrs. old:50.6%
4 more rows

Why is China pushing for electric cars? ›

As a result of generous government subsidies, tax breaks, procurement contracts, and other policy incentives, a slew of homegrown EV brands have emerged and continued to optimize new technologies so they can meet the real-life needs of Chinese consumers. This in turn has cultivated a large group of young car buyers.

Why electric cars are cheaper in China? ›

With rising demand for EVs, China's dominance in the production of these raw materials has made it easier and cheaper for Chinese automakers to produce EVs and expand their market share. Additionally, in the battery cell production business, Asian companies dominate.

What is the #1 selling EV in China? ›

China's EV sales almost doubled in 2022 with 87% YoY growth. BYD led the market, followed by GM Group, Tesla, Geely Holding and GAC Group. China's EV sales are expected to exceed 8 million units in 2023.

Which country has 90% electric cars? ›

Norway is the definitive world leader in EVs. The country holds the title of most electric vehicles per capita and is on track to reach its goal of no more ICE vehicle sales after 2025.

What is the best selling electric car in the world? ›

As expected, the Tesla Model Y dominated the global rankings, even ahead of the Model 3, the best-selling electric car in the world in 2021. The small SUV has found more than 747,000 new customers, a 91 percent increase over the previous year.

What state has the most electric cars? ›

Washington. Notably, in 2020, Washington had 5% -- 50,520 -- of all EV registrations in the U.S. This number was already seriously impressive, but it surged even higher to 32.30% to 66,810 by 2021, further cementing the state as an industry leader.

Will Chinese cars ever be sold in the US? ›

While there aren't currently any Chinese car brands for sale in the US, the concern is that eventually, Chinese automakers could eventually make a play to upend the US market.

How much does it cost to charge an electric car in China? ›

As of May 2020, around 47 percent of the respondents who had charged their vehicles at the public charging stations in China stated that they paid 1.5 to two yuan per kilowatt hour of electricity.

How many electric cars are in the US? ›

How many EVs are there in the United States? According to Experian, there are now 1.7 million electric cars in operation in the USA. Just to put this into perspective, there are almost 285 million total vehicles on the road. So there's no doubt that EV popularity has a long way to go.


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