The Rapidly Growing European Electric Vehicle Market... Volvo's Electric Vehicle Sales Share at 31%

[Image source= Xinhua News Agency]

[Asia Economy Reporter Byunghee Park] Volvo's electric vehicle sales have increased to the extent that one out of every three cars sold in Europe last year was an electric vehicle. It has been confirmed that the European electric vehicle market surpassed China as it rapidly expanded last year.

According to the Wall Street Journal (WSJ) on the 4th (local time), Volvo sold 661,713 cars worldwide last year. Of these, 115,436 units, or 17%, were electric vehicles. In particular, the proportion of electric vehicle sales in Europe was confirmed to be 31%. In the second half of the year alone, the share of electric vehicle sales reached 36%, indicating significant growth in the European electric vehicle market.

Volvo has been a pioneer among global automakers in starting electric vehicle production, and last year, the number of European countries offering substantial benefits for electric vehicles, including Germany, greatly increased.

According to automotive market research firm EV-volumes.com, the number of electric vehicles sold in Europe, which was 595,000 units in 2019, is estimated to have reached around 1.4 million last year. This means the market more than doubled. As a result, Europe appears to have overtaken China to become the world's largest electric vehicle market. EV-volumes.com estimated that China's electric vehicle sales increased from 1.2 million units in 2019 to 1.3 million units last year.

Based on last year's sales volume, Europe's market share of electric vehicles is estimated at 43%. Meanwhile, China's market share, which was 59% in 2019, fell to 41% last year. The United States' market share was recorded at 10%.

WSJ reported that although the U.S. electric vehicle market share lags behind Europe and China, the Biden administration, which emphasizes climate change response, may lead to an expansion of market share. The largest U.S. automaker, General Motors (GM), has also announced plans to produce only electric vehicles starting in 2035.

Volvo plans to increase the proportion of electric vehicle sales to 50% by 2025. Hakan Samuelsson, Volvo's Chief Executive Officer (CEO), stated that the plan is progressing smoothly.