Electric Vehicles Hit Tipping Point in 31 Countries, Led by Europe and Southeast Asia

The electric vehicle (EV) revolution is picking up steam, with a recent Bloomberg Green analysis revealing that 31 countries have surpassed a crucial tipping point: 5% of new car sales being electric. This threshold signifies a shift towards mass adoption, where consumer preferences for EVs accelerate rapidly.

This news comes just two years after a similar analysis by Bloomberg Green identified only 19 countries reaching the 5% mark . The significant rise in 2023 highlights the global surge of EVs across four continents, including some of the fastest-growing markets in Eastern Europe and Southeast Asia. The trajectory of these countries aligns with previous adopters, suggesting a potential jump from 5% to 25% of new car sales being electric within just four years.

Why is 5% such a significant number?

During the early adopter phase, sales are typically slow. However, once a tipping point like 5% is reached, a wave of mainstream acceptance takes hold. This transition often signifies overcoming initial barriers such as cost, infrastructure limitations, and consumer scepticism.

"More EVs popping up means more people seeing them as mainstream, automakers more willing to invest in the market, and the charging infrastructure expanding on a good trajectory."- BloombergNEF EV analyst Corey Cantor

Several countries have seen a particularly rapid transition in 2023. Thailand became Southeast Asia's EV leader, surpassing the 5% mark in Q1 and reaching nearly 13% by Q4.

A Global Tipping Point on the Horizon

The countries that have surpassed the EV tipping point now represent two-thirds of global auto sales. While significant portions of the global population haven't reached this stage yet, major markets like India, Indonesia, and Poland are showing promising signs of EV growth. Additionally, China's BYD is making a significant push into South America, with Brazil potentially becoming a major adoption hub.

Considering the entire planet, the world crossed the 5% EV tipping point in 2021. By Q4 2023, electric cars accounted for roughly 12% of new car sales globally. The factors driving this surge - decreasing battery prices, expanding charging infrastructure, and improved EV performance - continue to make electric vehicles a compelling option in new markets.

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Source: Bloomberg Green