Last Year, Global Electric Vehicle Sales Soared 44%... "Incentive Policies of Each Country Effective"

Europe Expands Electric Vehicle Subsidies Amid COVID-19...Emerging as the Largest Electric Vehicle Market
Hyundai Ranks 4th Globally in Electric Vehicle Sales...Kona Among Top 5 Best-Selling Models

Imported cars are waiting to be shipped at Pyeongtaek Port, as seen from a Seoul Metropolitan Police Agency helicopter on the 10th, one day before the Lunar New Year holiday./Photo by Jinhyung Kang aymsdream@

[Asia Economy Reporter Yoo Je-hoon] Last year, the number of electric-powered vehicles (BEV·PHEV·FCEV) sold worldwide surged vertically to 2.94 million units, thanks to incentive policies by various governments. Industry experts advise that since electric-powered vehicles have yet to secure competitiveness compared to conventional internal combustion engine vehicles, incentive policies must continue to build the electric vehicle ecosystem.

According to the report "2020 Status of Electric Vehicle Adoption and Major Policy Changes in Key Countries" published by the Korea Automobile Manufacturers Association (KAMA) on the 11th, the number of electric-powered vehicles sold worldwide last year was tentatively estimated at 2,943,172 units, a 44.6% increase from the previous year. The share of electric-powered vehicles in the total new car market also expanded from 2.2% to 3.6%.

◆Europe, which increased subsidies amid COVID-19, becomes the largest electric vehicle market = By type, pure electric vehicles surpassed 2 million units for the first time ever. Specifically, battery electric vehicles (BEV) saw sales increase by 34.7% year-on-year to 2,025,371 units. Additionally, plug-in hybrid electric vehicles (PHEV) and fuel cell electric vehicles (FCEV) increased by 73.6% and 9.3%, respectively, with sales of 909,519 and 8,282 units.

Regionally, the European and Chinese markets led the overall increase in electric-powered vehicle sales. The European electric vehicle market grew by 133.5% year-on-year to approximately 1.29 million units. Consequently, its share of the total electric vehicle market expanded from 27.2% to 43.9%, surpassing China's share of 41.1%. China's electric vehicle sales rose by 14.7% to about 1.2 million units.

The rapid rise in Europe's electric vehicle sales share is due to aggressive incentive policies. As the automotive industry sharply contracted due to COVID-19, European countries increased subsidies for electric vehicles and invested in infrastructure development. In particular, Germany, France, and Italy recorded remarkable growth rates of 278.7%, 177.8%, and 251.8%, respectively, supported by strengthened government support.

◆Tesla maintains first place... Volkswagen, GM, Hyundai show vertical growth = By manufacturer, Tesla maintained its top position by selling 442,334 units. However, rankings from 2nd to 10th were fiercely contested due to the electrification trend among traditional automakers. Notably, Volkswagen, General Motors (GM), and Hyundai·Kia showed significant rank improvements.

The Volkswagen Group rose to 2nd place with 381,406 units sold, a 211.1% increase year-on-year, driven by the launch of affordable electric vehicles like the ID.3 and high-end electric models from Porsche and Audi. GM climbed to 3rd place by selling 221,116 units, a 134.1% increase, boosted by the sales expansion of the ultra-compact electric vehicle Hongguang Mini launched through its Chinese joint venture.

Hyundai·Kia ranked 4th with 198,487 units sold, a 59.9% increase, moving up three places. This was influenced by the start of Kona EV production at its Czech factory in March last year and expanded sales of electric commercial vehicles in the domestic market.

The Renault-Nissan Alliance ranked 5th, aided by increased sales of the Renault Zoe, which was the best-selling model in the European market last year. Sales reached 194,158 units, a 34.9% increase year-on-year.

Additionally, BMW Group, Daimler Group, Geely Holding Group (China's Geely Automobile), and PSA formed the 7th to 10th ranks. Chinese electric vehicle manufacturer BYD fell four places to 6th due to intensified competition with emerging EV specialists like Tesla and NIO. BYD's sales were the only ones among the top 10 companies to decline, dropping 18% to 179,295 units.

By model, the top five were Tesla Model 3 (336,302 units), Hongguang Mini (126,603 units), Renault Zoe (101,103 units), Tesla Model Y (70,527 units), and Hyundai Kona EV (55,981 units). The combined market share of these top five models was 34.1%, accounting for more than one-third of the entire electric vehicle market. KAMA forecasts that with about 300 or more models expected to be launched by 2025, competition among manufacturers will become even fiercer.

Jung Man-ki, Chairman of KAMA, stated, "Last year's electric vehicle market greatly benefited from active incentive policies such as expanded subsidies by governments worldwide to overcome the COVID-19 crisis." He added, "Since electric vehicles still find it difficult to secure competitiveness compared to internal combustion engine vehicles, incentive policies such as subsidy expansion, charging infrastructure development, and improved charging convenience are necessary."

Chairman Jung also emphasized, "In particular, efforts are needed to improve the business environment for electric vehicle manufacturers and to dramatically enhance charging convenience for consumers so that production and adoption of electric vehicles can expand driven by market forces."

This content was produced with the assistance of AI translation services.