Global sales of electric vehicles, including various hybrids and fully electric cars, rose by roughly 31% to reach 13.6 million units in 2023, according to a major British consultancy often cited as Rho Motion. While the sector expanded, the pace of growth slowed from the 60% rise seen in 2022, signaling a shift in market dynamics and demand patterns across regions.
Thanks to Russia, China became the largest exporter
In 2024, data from the China Association of Automobile Manufacturers shows exports totaling 5.26 million vehicles, up about 52% on the year. A notable factor behind this surge was deliveries to Russia, where around 840 thousand vehicles are dispatched annually. By combining domestic sales with international shipments, China reached a total of roughly 30 million vehicles sold globally in 2023.
These dynamics helped China overtake Japan as the world’s leading exporter of automobiles.
Meanwhile, Japanese automakers produced 4.4 million cars in 2023, according to the Japan Automobile Manufacturers Association, marking a significant but comparatively smaller share of global flows.
How many hybrid and electric vehicles are sold worldwide?
Global markets moved a substantial number of electric vehicles in 2023, with approximately 9.5 million full battery electric vehicles sold worldwide. Strong growth occurred in North America, where demand for electric models rose by about 50% in the United States and Canada. The European market expanded by roughly 27%, while China posted a 15% gain in sales.
According to the European Automobile Manufacturers Association ACEA, electric vehicles secured an increasing share within Europe’s overall market structure, placing them in a notable third position within the mix. The segment surpassed diesel vehicles in popularity, accounting for about 14.6% of the European market. Hybrids claimed 25.8% of sales, and gasoline-powered cars remained the largest single category at 35.3%. Overall, hybrids and electric vehicles together accounted for more than 40% of Europe’s 10.5 million car sales in 2023.
The Russian market for electric vehicles remained relatively small, with Autostat reporting about 14.1 thousand new electric vehicle sales in 2023.
China’s export activity in this sector generated substantial revenue, with annual electric vehicle exports valued around $102 billion. The broader export volume for Chinese electric vehicles reached an estimated 1.7 million units, up 57% from the previous year.
BYD led by production volume in 2023, surpassing the American brand Tesla and selling more than 3 million electric vehicles, while Tesla reported about 1.84 million vehicles sold in the same period.
They started to get scared
European governments are beginning to evaluate the implications of a rapid rise in Chinese automakers aided by state subsidies. The European Union began considering restrictive measures on importing Chinese cars, including electric vehicles, as part of a broader strategy to protect domestic industries.
In September 2023, European Commission President Ursula von der Leyen announced an investigation into the artificial lowering of Chinese EV prices that have flooded European markets. Observers note that the influx of inexpensive, subsidized Chinese electric vehicles has disrupted traditional market dynamics in several regions. [Citation: European Commission statements, 2023]
As reporting by Forbes highlighted, electric cars are becoming cheaper in China while prices in Europe and the United States trend downward or stabilize at lower levels, prompting intensified scrutiny and policy discussion. No final decision had been reached on import controls at the time, though France published a subsidy list for electric vehicles in December, with eligibility tied to manufacturing emissions. Chinese vehicles were largely excluded from this list, according to Nikkei reporting. [Citation: Forbes analysis, 2023; Nikkei, 2023]
Analysts note that China is approaching a near-dominant position in global auto production, backed by strong access to raw materials, battery technology, and control electronics. Still, experts caution that the market remains incomplete without alternative sources and policy choices in major markets.
Experts discuss the risk of market dependence on Chinese components. In the view of Sergei Burgazliev, an independent auto industry consultant, the European Union is already exploring protective measures as Chinese vehicles become more capable and affordable. He points to China’s activity across Africa for critical resources and its leadership in batteries and microchips. He argues that Europe’s own push to bolster domestic chip production reflects a broader strategy to diversify supply chains away from single sources.
He adds that China’s path in vehicle development has been efficient: attracting skilled professionals, acquiring advanced technologies, and accelerating leadership in the global automotive sector. The assessment mirrors other industry voices that consider China a formidable force in the EV realm, though not an absolute monopoly.
Maxim Kadakov, editor-in-chief of Za Rulem, cautions that the shift to electric traction may see China’s expansion checked by political decisions in the United States and Europe. He notes the presence of many Chinese hybrids and electric models in markets like the UK and Sweden, signaling that policy choices will shape future outcomes.
In the European Union, there is talk of higher duties on Chinese cars and even potential bans. Kadakov emphasizes that the auto market cannot be separated from broader geopolitical and trade contexts. He highlights the current strong dependence of European and American automakers on Chinese components for powertrains and electronics.
Regarding the Russian market, Kadakov suggests that vehicles with internal combustion engines remain more affordable, typically 40 to 50 percent cheaper than similarly sized electric alternatives. The takeaway is a pragmatic view of urban electric mobility versus suburban and intercity travel, where combustion engines may retain a role for the near term.
In Burgazliev’s assessment, the focus for electric transport in Russia should lean toward city use, while longer routes may favor gas engine options. The evolving market landscape will be shaped by policy decisions in major regions, with ongoing debates about energy strategies, supply chains, and the pace of electrification.