Electric Car Market to Generate Sales of 5.3 Million Units by 2023

  • Published: August 2018

Electric car sales were 0.8 million units in 2016, and these are projected to surpass 5.3 million units by 2023, at a CAGR of 33.6% during the forecast period (2017–2023).

Historically, the electric car market witnessed the fastest growth in the category of battery electric cars (BEV) category. It is mainly due to the huge government support for both manufacturers and consumers, in the form of monitory incentives.

Growing Partnerships among the Players is the Key Trend in the Market

Partnerships and joint ventures are one of the key trends in the electric car market. Major companies in the industry have been collaborating with players at the regional level. For instance, in September 2017, Mahindra & Mahindra Ltd. formed a strategic alliance with Ford Motor Co. for the development and production of electric vehicles and connected vehicle technology, for a period of three years.

Rapidly Falling Battery Cost is Driving the Growth of the Electric Car Market

The declining cost of the batteries used in electric vehicles is acting as a major growth driver for the global electric car market. The prices of electric car battery packs dropped by more than 77% during 2010–2017, to an average of $227/kWh. The prices of lithium-ion batteries are expected to decline further, to around $110/kWh, in the next five–six years, which will further benefit in the growth of the market.

Segmentation Analysis of Electric Car Market

Electric Car Market

BEVs are expected to witness the fastest growth in the electric car market, during the forecast period, in volume terms, globally, mainly owing to the higher monetary incentives for the adoption of these vehicles over plug-in hybrid cars (PHEV) and hybrid electric cars (HEV).

Medium electric cars are expected to witness the fastest growth during the forecast period. Economy electric cars are also expected to account for a significant share in the electric car market during the forecast period. This would mainly be due to the lower price of these cars leading to their higher preference in the Asia-Pacific (APAC) region.

Geographical Analysis of Electric Car Market

APAC is expected to dominate the global electric car market, in terms of sales, during the forecast period. This is mainly ascribed to the supportive policies from the government, in the form of huge incentives for the production and purchase of electric cars, in major countries, mainly China.

Competitive Landscape of Electric Car Market

The electric car market was moderately fragmented in 2016, as the presence of market players varies in different regions. In China, the market was highly fragmented with the presence of various electric car manufacturers, such as BYD Co. Ltd., BAIC Motor Corp. Ltd., SAIC Motor Corp. Ltd., Geely Automobile Holdings Ltd., Chery Automobile Co. Ltd., and Anhui Jianghuai Automobile Co. Ltd. (JAC Motors). In North America, the market was dominated by Tesla Inc., Toyota Motor Corp., and General Motors Co.

In November 2017, Volkswagen Group, Ford Motor Company, Daimler AG, and BMW Group formed an alliance, IONITY, to set up 400 electric vehicle charging stations across Europe, mainly in Austria, Germany, and Norway.

Some of the other major players operating in the electric car market are Honda Motor Co. Ltd., Hyundai Motor Co., and Renault–Nissan–Mitsubishi Alliance.


By Technology

  • Battery Electric Vehicles (BEVs)
  • Plug-in hybrid electric vehicles (PHEVs)

By Segment

  • Economy
  • Low
  • Medium
  • Premium

By Region

  • North America
    • U.S.
    • Canada
    • Rest of North America
  • Europe
    • Germany
    • France
    • Norway
    • U.K.
    • Netherlands
    • Rest of Europe
  • Asia-Pacific
    • China
    • Japan
    • Rest of Asia-Pacific
  • Rest of the World