2023 was a year of steady growth in the electric car market, both in Italy and worldwide. While in our country progress in the transition towards sustainable mobility continues in small steps, it is clear that further incentives and stronger consumer support policies are needed to accelerate this transition. In the global context, on the other hand, competition between the major electric car manufacturers continues to intensify, with China remaining the undisputed leader in the sector. Looking ahead, 2024 promises to be a crucial year for the automotive industry, with new challenges and opportunities awaiting both manufacturers and consumers.
The automotive sector has undergone an unprecedented transformation in recent years, with an increasing focus on sustainability and technological innovation.
Electric car market 2023 in Italy
After a period of slowdown in 2022, the electric car market in Italy showed signs of recovery during 2023. However, the pace of growth was modest, merely bringing sales of electric vehicles back to 2021 levels. This result, although positive, highlights a worrying trend: Italy continues to lag behind other major European markets in the transition to electric mobility.
Sales of fully electric cars (BEVs) increased significantly, with a total of 46,642 units registered, accounting for 4.2% of the overall car market. Plug-in hybrids (PHEVs) maintained a similar share, accounting for 4.4% of the market with 32,828 sales.
The Tesla Model Y has been confirmed as the queen of the electric car market in Italy and worldwide, followed by the Tesla Model 3 and the Fiat 500e. Other popular models include the Smart Fortwo, the Dacia Spring and theAudi Q4 e-tron.
Despite the growth, the overall market share of electric cars in Italy remains modest, highlighting the absolute need for further strong incentives and policies supporting electric mobility to accelerate and intensify the transition towards a sustainable and clean car market.
Electric car market 2023 worldwide
Globally, the electric car market reached new records in 2023, with approximately 9 million vehicles sold. This represents a 29% increase over the previous year, despite general political and economic instability coupled with rising inflation. China continues to lead the global electric car market, accounting for 57% of total registrations, followed by Europe and the US.
The penetration of electric cars is steadily increasing worldwide, with China, Europe and the US showing significant progress. Major automotive players such as Tesla, BYD, and the Volkswagen Group dominate the market in close competition with other manufacturers.
In Europe: growth trends in the electric market
In Europe, a 15.1% share of sales in 2023 placed electric cars in third place as the most popular choice among buyers, overtaking diesel for the first time. Countries such as the Netherlands, Germany and France saw significant margins, with percentage increases in sales of 90.1%, 64.4% and 52.0% respectively. Since the beginning of the year, overall growth has reached 53.8%, with a total of 703,586 units sold.
However, despite the success of electric cars, plug-in hybrids declined slightly, despite an increase in registrations in June. This affected the overall market share, which stood at8.2 %, down year-on-year.
United States: booming sales supported by incentives and lower prices
In the United States, the electric car market is booming. In the period between April and June 2023, a record 295,000 electric vehicles were sold, surpassing the total for the whole of 2019. Lower prices and the availability of a wide range of vehicles have contributed to the boom, along with incentive policies such as theInflation Reduction Act, which offers tax credits of up to $7,500 for the purchase of electric vehicles with auto parts and assembly sourced from American labor.
Despite progress, the average cost of EVs remains higher than conventional cars, with an average price of about $53,469. This can be a barrier for low-income consumers, along with the lack of access to charging stations.
Asia: China leading the world in electric vehicle production and exports
China continues to dominate the global electric car market, accounting for nearly 70% of total sales in the first quarter of 2023. The country exported more than 2.5 million vehicles, 40% of which are electric. Southeast Asian countries such as Thailand and Indonesia are becoming key destinations for Chinese exports, with the latter also trying to emerge as an electric vehicle manufacturer.
Indonesia has reduced the value-added tax on electric vehicles and set ambitious production targets by 2030. However, additional incentives may be needed to accelerate the transition to electric mobility in this developing country.
New expectations and challenges for 2024
In the global context, 2024 promises to be another year of growth for the electric car market. Forecasts indicate a further increase in sales, driven mainly by continued technological innovation and growing environmental awareness among consumers. Major electric car manufacturers, such as Tesla, Volkswagen, and Chinese companies, will continue to invest heavily in the production and development of new models, thereby increasing supply and diversity in the market.
Increasingly stringent government policies and environmental regulations in many parts of the world will further promote the adoption of electric cars, encouraging both consumers and companies to opt for zero-emission vehicles. In addition, the growing availability of fast-charging infrastructure and lower battery costs will help make electric cars increasingly affordable and accessible to more and more people.However, there are also challenges to be faced during 2024.The shortage of crucial raw materialsprime for battery production, such as lithium and cobalt, could slow the growth of the industry unless alternatives are found or the recycling capacity of existing batteries is increased. In addition, competition among electric car manufacturers will intensify further, with new players entering the field and trying to gain a share of market share for the benefit of consumers.