According to the German Automotive Association, VDA, over 71 million passenger vehicles were sold globally in 2022, of which 10.5 million were electric vehicles. The number of electric cars hitting the streets is expected to continue to grow in the coming years as automakers ramp up production to meet a growing appetite for greener modes of transportation.

Automakers around the world are making massive investments to improve electric vehicle technology and capabilities while governments continue to build infrastructure to support the transition to more non-carbon-based fuels. All of this is expected to accelerate the demand for electric vehicles globally.

It shouldn’t come as a surprise that China, the world’s single-largest car market with over 23 million cars sold in 2022, is also the world’s largest EV market. China accounted for 59% of global EV sales in 2022 and is expected to be the leader for years to come. The country also boasts the largest fleet of EVs - more than 50% of electric cars on the road worldwide are in China.

China has also been harnessing its production power. The country leads the world in the production of EVs. Six of the top 15 EV producers are Chinese car companies. Together, they produced just over 3.2 million vehicles, accounting for about 30% of all EVs manufactured globally in 2022.

| Growing demand for electric cars

Sales of electric cars set a new record in 2022 with 10.5 million vehicles hitting the road. That is a 55% increase from the year prior. EV sales have been climbing steadily year-over-year since 2013 and that trend is expected to continue. The International Energy Agency estimates that 2023 will be another record year for global electric car sales. According to EV-Volumes.com, global EV sales are expected to grow by 36% in 2023 to about 14.3 million new electric vehicles sold worldwide.

The high demand for EVs is spurring investment by pure-play electric car companies as well as traditional car manufacturers. To meet the growing demand, automakers are racing to bring new battery electric vehicles and plug-in hybrids to market. Automakers are investing billions in constructing new production facilities, innovating to reduce costs, and signing deals to secure the raw materials required to produce their vehicles. Governments are battling to attract automakers to set up shop within their borders via incentives such as grants.

| BYD surpasses Tesla to claim poll position

In the Western world, Tesla is a household name and a brand that is synonymous with electric vehicles. As a pioneer in the industry, Tesla’s innovative technologies and brand recognition have helped develop a strong legion of supporters, putting it first in EV sales globally for many years. However, Tesla lost a bit of its shine in 2022.

While Tesla produced 1.3 million cars in 2022, a staggering 1.8 million BYD EVs (BEVs and PHEVs) hit the roads in 2022, a 211% increase from 2021, catapulting it ahead of Tesla to claim the crown as the world’s top EV producer. BYD produces two types of electric vehicles: battery electric (BEV), and plug-in hybrids (PHEV). BYD is now the world’s largest manufacturer of plug-in hybrid electric vehicles and second only to Tesla when in the production of battery electric vehicles.

| Chinese automakers lead the charge in EV production

BYD is not the only Chinese automaker making waves when it comes to EVs. Six of the top 15 electric car manufacturers - BYD, Geely Auto Group, GAC Group, SAIC Group, Cherry Auto Co, and Changan Auto Co. - account for about 30% of 2022 EV production worldwide. Together, they produced more than 3.2 million vehicles. Production is expected to increase as demand within China continues to grow, and as Chinese automakers look to begin expanding their offerings to overseas markets.

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