20241223: US Lags Behind in the EV World By a Factor of 10-20!

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Even with TESLA and Elon Musk, US Lags Behind in the EV World

By a Factor of 10-20!

23 Dec 2025: See how the Car Market is being disrupted by the rise in EVs. It can be anyone’s guess if the trends will accelerate even faster. We often get focused on the US and how their EV adoption is going, but the rest of the world is much more objective and EV adoption is moving ahead at a fast pace.. In this article see how the GLOBAL adoption process is moving forward, and you might be SURPRISED.

1. EV penetration by geography

WORLDWIDE: > 15x Increase

In 7 Years the % of cars in that are EVs has gone from <0.25% and is now over 4%.

With approximately 1.5 billion cars in the world, and at the end of 2024 the number of EVs is expected to be around 30 million.

CHINA: > 10x Increase

In 14 Years the % of cars in China that are EVs has gone from <4% and is now over 45%.

China manufacturing capabilities, especially battery manufacturing will see this figure continuing its rise.

EUROPE: > 10x Increase

In 7 Years the % of cars in Europe that are EVs has gone from <2% and is now over 22%.

Although Europe has only been in the EV game for half the time, it has reached half the % of new car registrations compared with China, and the curve is still increasing by 5% per year.

US: 20x Increase

In 10 Years the % of cars in US that are EVs has gone from <0.1% and is now around 2%.

With TESLA, RIVIAN and some giant Legacy manufacturers, the US EV % are only 10% of Europe and 4% of China. But with only 0.5% increase per year it seems the US will be at the “Back of the Line”

2. 2023 & 2024 Negative growth for Worldwide car sales and positive growth for EVs.

Peoples Love for Cars is Waning with Total Car Sales are Negative (-10%)

People Who Want a Car are producing EV Sales that are Positive(+10%)

While EV sales maintain a positive trajectory, despite a slowing growth rate, total car sales take a downturn, dipping into negative territory in 2023 and 2024. This divergence can be attributed to a confluence of factors:

EV Sales Growth

Technological Advancements: Continuous improvements in battery technology have led to increased range, reduced charging times, and lower battery costs, making EVs more appealing to a wider range of consumers.
Government Incentives: Supportive policies like tax credits, subsidies, and rebates have played a crucial role in incentivizing EV adoption, making them more financially accessible. Lately, we see the manufacturers reducing prices as volumes / competition increases
Environmental Awareness: Growing consumer consciousness about climate change and air pollution has fueled demand for cleaner transportation alternatives, with EVs emerging as a frontrunner.
Expanding Model Range: The availability of a wider variety of EV models, catering to diverse needs and preferences, has broadened the appeal of EVs beyond early adopters.

Total Car Sales Decline

Economic Downturn: The global economy has been grappling with a slowdown, marked by rising inflation, higher interest rates, and increased living costs. This has dampened consumer confidence and discretionary spending, including big-ticket purchases like cars
Shifting Consumer Preferences: Beyond economic factors, there’s a gradual shift in consumer preferences away from car ownership, particularly in urban areas. Ride-sharing services, public transportation, and alternative modes of mobility like cycling and walking are gaining traction, reducing individual car dependence.
Market Saturation: In mature markets, car ownership has reached a saturation point, with replacement purchases driving a significant portion of sales. This naturally leads to slower growth compared to emerging markets with lower car ownership rates.
Economic Situation: Rising interest rates have made car loans / leasing more expensive, deterring potential buyers. Coupled with increased living costs, consumers are postponing major purchases or opting for more affordable used cars.

Car Market Transformation is Underway

The contrasting growth trends between EV sales and total car sales highlight a tra nsformative phase in the automotive industry. While EVs continue to gain momentum, driven by technological advancements, policy support, and environmental concerns, the overall car market faces significant challenges. Economic uncertainties, and evolving consumer preferences are reshaping the landscape, leading to a contraction in total car sales. This divergence underscores the need for automakers to adapt to the changing dynamics, accelerate EV development, and navigate the complexities of a dynamic market.

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