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The global electric vehicle market was valued at USD 309.38 billion in the year 2021 and is projected to reach USD 1,203.01 billion by the year 2028, registering a CAGR of 21.4%. Increasing demand for a safe, cost-effective, and environment-friendly alternative to traditional vehicles, and government support through subsidies and tax rebates are driving the electric vehicle market growth.
There were 10 million electric cars globally at the end of 2020. Despite the global pandemic, electric car registrations increased by 41% in 2020, according to International Energy Agency (IEA). Major driving forces for the electric vehicle market are regulatory support, such as a ban on the sale of traditional cars; incentives to promote electric vehicle sale, and a decrease in battery cost. Currently, 17 European Union (EU) states offer incentives for the purchase of electric vehicles while 10 countries grant tax reductions or exemptions. Similarly, in the United States, electric car buyers are eligible for a federal tax credit of up to USD 7,000 and are exempted from all fuel consumption-related federal taxes. These incentives were the primary reason for the high adoption of electric vehicles in China but the country is now planning to reduce tax incentives. In December 2021, the Chinese government announced that purchase incentives would be cut by 30% beginning January 1, 2022.
There were 10 million electric cars globally at the end of 2020. Despite the global pandemic, electric car registrations increased by 41% in 2020, according to International Energy Agency (IEA). Major driving forces for the electric vehicle market are regulatory support, such as a ban on the sale of traditional cars; incentives to promote electric vehicle sale, and a decrease in battery cost. Currently, 17 European Union (EU) states offer incentives for the purchase of electric vehicles while 10 countries grant tax reductions or exemptions. Similarly, in the United States, electric car buyers are eligible for a federal tax credit of up to USD 7,000 and are exempted from all fuel consumption-related federal taxes. These incentives were the primary reason for the high adoption of electric vehicles in China but the country is now planning to reduce tax incentives. In December 2021, the Chinese government announced that purchase incentives would be cut by 30% beginning January 1, 2022.
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