Global sales of electric vehicles (EVs) for the first half of 2022 rose by 81% compared with the same period a year earlier. At the same time, total car sales declined by about 12%.
Much of the acceleration in electric vehicle adoption has come from China, where more than 2 million pure electric vehicles were sold in six months. Hybrid models are also growing rapidly there, up about 170% versus the first half of 2021. In Europe and North America, the share of electric vehicles is expanding dramatically as well.
What drove this rapid shift to electric driving? In the United Kingdom, EV sales continued to rise even after the removal of a £1,500 incentive for first-time buyers. Manufacturers, observing sustained demand, are adjusting plans to build what some call electric trains. For instance, Tesla has signaled ambitious production goals, aiming higher volumes in the coming years while maintaining current output levels as a reference point.
Arguments in favor
The reasons behind the growing appeal of electric cars are manifold. Consumer preferences are tilting toward electrification, and the financial case is strengthening. With typical energy use around 15 kWh per 100 kilometers, a Chinese driver might spend roughly $1.22 on electricity for that distance, assuming an average electricity price of about $0.081 per kWh. By comparison, gasoline in China averages about $1.35 per liter; with urban consumption around 10 liters per 100 kilometers, fuel costs reach roughly $13.50 for the same distance, making EVs economically compelling.
A similar calculus applies in Europe. In the United States, where vehicle choice has traditionally skewed toward conservatism, a rise in fuel prices has shifted the math. With gasoline averaging about $0.60 per liter locally in a recent period, driving 22,000 kilometers annually can make an electric car pay for itself within roughly a decade of ownership.
Illustrative figures show the relative costs involved:
- $0.11 – the cost of driving 1 kilometer on gasoline;
- $0.014 – the cost of running 1 kilometer on electricity in the United States;
- $27,000 – the typical price of a car in the United States.
Across North America, the economics are favorable, especially for households with a garage and stable home power. In such settings, owning an EV reduces dependence on traditional fuel stations and simplifies daily fueling. Models like the latest EVs from major manufacturers are increasingly price-competitive with their internal combustion engine counterparts, sometimes ending up cheaper to own over the long run. In the United States, certain subsidized electric models have been observed around the $30,000 mark, a threshold that makes them attractive even to buyers who previously kept a distance from electrification. The demand is real, with queues forming where discounted or attractively priced EVs are available.
Economic realities matter. If the total cost of ownership for electric travel falls behind or remains competitive with conventional options, many consumers will opt for EVs. This is especially true for those who own homes with sufficient capacity to support home charging, even at a modest rate such as 15 kW. In such cases, the choice becomes straightforward for many buyers seeking long-term savings.
What remains to be watched
The big question is how governments will respond to evolving tax revenue streams tied to fuel and electricity usage. If fuel taxes start to recede as EV adoption grows, policymakers might consider new charges on electricity used for charging or on the vehicles themselves to maintain revenue. The timing and nature of such measures will matter for future cost calculations and consumer confidence.
As the market evolves, observers can consider diverse viewpoints. Readings from international observers offer additional context on how different regions perceive the shift to electric mobility. Commentary and updates from industry analysts continue to shape expectations for EV growth in the coming years, and the discussion remains fluid.
- Read here what foreigners think about the novelty of AVTOVAZ, a perspective from outside the mainstream market.
- Behind the wheel can also be explored via channels discussing automotive trends and emerging technologies.