2024 saw a 25% increase in EV sales worldwide with 17 million new electric vehicles added to the global fleet. The growth was driven mainly by China which added 11 million EVs to its domestic fleet and on a monthly basis, in July 2024, EV sales overtook ICE (internal combustion engine) car sales in China. You can find a report from IEA here. While China will remain a dominant player in shaping the global transition to electric vehicles, we will look at other regions of the world that could play an important part in further development of electric vehicles.

I have listed below, regions that, due to factors like economic output, growing middle class population, government incentives towards new energy and commitment towards electric mobility could become the main drivers for growth in this sector.

Below is a set of criteria on which each region will be scored. Scoring a positive in each criteria will add 1 point to the total rating of 3 and a negative would not add any points.

1. Sales volume – Will look at absolute sales numbers and not a percentage of the fleet. Some regions have much bigger fleets that other regions and it will take longer to replace the total fleet with EVs.
2. Government subsidies – Any incentives provided by local governments for the purchase of low emission vehicles can play a vital role in EV adoption.
3. Local tariffs and duties – Tariffs placed on cars or parts that are imported can act as a barrier to EV adoption and disincentivise car distributors or manufacturers to invest in EV production and infrastructure development.

Canada

Sales volume – As per Statistics Canada 202,103 new electric vehicles were added to Canada’s fleet in 2024 which made up a healthy 15% of the country’s new car sales of 1,852,738 units. [Positive]

Government subsidies – While Canada has pause the federally funded iZEV program for light EVs, it still offers incentives for medium and heavy electric vehicles through the iMHZEV program. Incentives are also available for light passenger EVs through provincial incentives like the CleanBC Go Electric program. [Positive]

Local tariffs and duties – Canada has a 100% tariff on EVs manufactured in China and 25% on select EVs imported from the USA. Here is a recent report from a Canadian publication that breaks it down. I tried using the Canadian government trade tariff calculator which showed more than 30% on tariffs and surtax. I also used the Canadian duties estimator which calculated around 20% duties for any automotive parts imported from outside the US, Canada and Mexico trade region or is not a signatory to the Canada-United States-Mexico Agreement (CUSMA). [Negative]

Points: 2

USA

Sales volume – According to this report published in Reuters, in 2024, out of 15.9 million new cars sold in the United States, 1.7 million of them were EVs. Although a sizeable number, it was actually a decline in the market share for EVs from 9% in 2023 to 8.75% in 2024 and well below the global average of EVs having a 20% share in new car sales worldwide. [Positive]

Government subsidies – The US currently has a conditional tax credit for EVs based on certan manufacturing criteria. This tax credit is available are per the Inflation Reduction Act of 2022. However there maybe some roadblocks in near future as per this report, which suggests that the incentives would end on December 31, 2025. [Negative]

Local tariffs and duties – As per this report published in the Guardian all goods entering the US are still subject to a 10% Universal Tariff, an additional 25% tariff on automotive products, add to that a 30% on cars manufactured in China (this could go back to 145% after the 90-day pause). This report by Car and Driver explains that as the US imports 60% all cars that are sold, even the minimum tariff on all auto imports will drive prices up for the consumers. [Negative]

Points: 1

Mexico

Sales volume – Mexico is now a major auto manufacturing hub in the continent exporting around 80% of its vehicles to the US. For the domestic market it recorded roughly 1.5 million new vehicle sales out of which 31,293 units were fully electric. This represents 2% of the market share and there has been a decline in market share for EVs compared to the last year. [Negative]

Government subsidies – Mexico with its newly elected government has promised heavy incentives for investments into fixed assets that are used in the production of electric vehicles through the Plan Mexico decree. The government also offers various incentives to owners and renters of EVs. [Positive]

Local tariffs and duties – In October last year, Mexico ended a tax exemption scheme for EV manufacturers who do not have a free trade agreement with Mexico. This means all Chinese (accounting for almost 40% of the EV market share) and some European brands would attract a 15-20% tariff when they are imported into the country. This would also affect auto parts suppliers from South Korea, Vietnam, India, Thailand, Taiwan, and Turkey. [Negative]

Points: 1

Brazil

Sales volume – Brazil recorded 62,380 electric vehicle sales in 2024 which was a three-fold increase compared to the previous year. Despite a strong growth in the market share of EVs, it still made up only 2.5% of the total new vehicle sales of 2024, which stood at 2.48 million units. [Positive]

Government subsidies – Green Mobility and Innovation Program (MOVER) offers tax incentives to automotive companies that plan to invest in sustainability and decarbonisation. This scheme will end in 2028. [Positive]

Local tariffs and duties – Brazil is phasing out its tariff exemption in affect from 2015, starting from 2024 when it implemented a 18% tariff in July and this will increase this to its original rate of 35% by 2026. [Negative]

Points: 2

UK

Sales volume – Out of the roughly 2 million new cars sold in the UK in 2024, 382,000 EVs were registered which makes up about 19.5% of the sales figures. Although a 22% target set by the government earlier was not achieved it is still a healthy percentage. [Positive]

Government subsidies – Various incentives are offered to EV drivers and owners in the UK. EVs registered after April 1, 2025 will pay a discounted registration fee of £10 (USD 13) for the first year. EVs are exempt from London’s Congestion charges till December 31, 2025. Also, the company car tax rate for EVs will remain up to 5% till 2028 which can go up to 37% for higher emission vehicles. That’s not all – many supermarkets and other public spots offer free charging. The government also offers a grant that would cover up to £350 (USD 475) for the cost of installing a home or workplace wall box charger. Here is another link I found on the Kia UK website that explains the numerous incentives of owning an EV in the UK. [Positive]

Local tariffs and duties – There are no special tariffs on EVs imported from outside the EU, however, a 20% VAT applies which can be claimed back by the business and a 10% customs duty. [Positive]

Points: 3

Germany

Sales volume – Germany recorded a 1% decline in vehicle sales for 2024 with 2.8 million new cars sold out of which 380,609 were fully electric. EVs saw a pretty steep 27.4% decline in the market share as compared to the previous year. However, the country’s strong automobile manufacturing sector headed by Volkswagen could be a strong driver of EV sales in the near future. [Positive]

Government subsidies – Germany ended its clean car subsidy abruptly in December 2023. Without any monetary incentives most Germans are finding EVs too expensive and also feel the charging infrastructure is not adequate. [Negative]

Local tariffs and duties – All cars entering Germany from non-EU member states are subject to a 10% duty and 19% VAT (which can be claimed back by a VAT registered business). On top of this the EU has imposed tariffs cars imported from China. These tariffs which Germany had voted against, range from 17% – 35.3% depending on the supplier. [Negative]

Points: 1

France

Sales volume – France saw a 3% decline in 2024 new vehicle sales with 1.7 million cars registered by the end of the calendar year. There was however a marginal uptick in EV sales with 291,143 taken off the lot giving it a 16.9% of the market share. [Positive]

Government subsidies – France offers a variety of benefits and incentives to private and commercial EV owners and users. These range from subsidies on car purchase, free parking, grant for home charger installation to reduced VAT and company taxes. [Positive]

Local tariffs and duties – All countries outside the EU are subjected to a 10% base tax along with 20% VAT (which can be claimed back by companies). According to report in Reuters, tariffs on Chinese imports could range from anywhere between the high teens to the high forties. [Negative]

Points: 2

Netherlands

Sales volume – Out of the 381,227 new vehicles sold in the Netherlands in 2024, 132,166 were EVs having a strong 35% market share which makes the country among those with the highest EV adoption rate. [Positive]

Government subsidies – After running a EV subsidy scheme for five years Netherlands now only provides a variety of tax incentives to businesses and individuals that range from reduced Motor Vehicle Tax to income tax exemptions. [Positive]

Local tariffs and duties – Like most other EU countries the Netherlands has a varying tariff for EVs imported from outside the EU ranging from 7.8% to 45.3%. However there is a possibility these rates may decrease in future as governments are currently negotiating. [Negative]

Points: 2

Norway

Sales volume – This list would be incomplete without mentioning Norway which remains the world leader in EV adoption with 114,409 new EVs sold in 2024 out of the 128,691 total new car sales, thus giving EVs a 88.9% market share. [Positive]

Government subsidies – Norway is a test case for all countries that are planning a partial or complete electrification of their fleet to in the near future. Have a look at the this report to understand how Norway has made owning EVs attractive over the last few decades with many schemes that have now run out. But even today, an EV enjoys exemption from registration tax, road tax and VAT (for EVs valued up to 500,100 NOK / USD 50,000). EVs also enjoy a 70% discount on road tolls. Here is the full list of benefits. [Positive]

Local tariffs and duties – Not being a part of the EU, cars imported into Norway are not subjected to the tariffs on imported EVs and unlike other ICE vehicles, EVs are exempt from various vehicle taxes applicable at the port of entry. [Positive]

Points: 3

China

Sales volume – 31.436 million new cars were sold in China in 2024 showing a 4.5% growth compared to the previous year. This would give you an idea of how big and how fast the vehicle market is moving in China. The EV market is equally big with 11 million cars registered in 2024. No surprises, this is by far the biggest volume of cars or EVs sold anywhere on the planet. [Positive]

Government subsidies – China currently does not offer a lot of incentives for buying EVs mainly because most EVs are priced similar very competitively. However, a trade-in scheme allows consumers to scrap their older ICE or electric vehicle for RMB 15,000 (USD 2,047). [Positive]

Local tariffs and duties – China has a tiered tariff structure on imported cars that vary from 25% – 47% based on the engine size. [Negative]

Points: 2

Japan

Sales volume – Japan saw a 7.5% decline in vehicle sales for 2024 with 4,421,494 cars sold. There was also a decline in the EV sales with only 59,736 registered last year making Japan’s EV adoption one of the lowest in leading economies with only 2% market share. [Negative]

Government subsidies – Japan offers up to JPY 850,000 (USD 6,000) for EVs as a subsidy. This number is set to increase this year. [Positive]

Local tariffs and duties – Japan has a zero tariff policy on all auto imports. It does however have very strong compliance guidelines that can sometimes make it hard to import cars into Japan. [Positive]

Points: 2

South Korea

Sales volume – South Korea’s new car sales in 2024 was 1,35 million units which was a 4% decline from the previous year. EVs which made up just 9% of the new car market saw a decline as well selling 122,300 units in 2024. [Negative]

Government subsidies – The government has announced a 20% discount for young people planning to purchase EVs and up to SKW 3 million (USD 2178) subsidy for families with three to four children. [Positive]

Local tariffs and duties – There is a flat 10% VAT on all goods in South Korea. A special 10-20% excise may apply to certain luxury goods including cars. [Negative]

Points: 1

India

Sales volume – Out of the 4.2 million new passenger cars sold in 2024, 105,695 were EVs giving it a small market share of 2.5%. There was however, a positive growth in the Indian auto sector and in EV uptake as well. [Positive]

Government subsidies – India currently offers a variety of incentives to EV related businesses and for individuals planning to get into EVs. These include reduction of GST on EV purchases to 5% from 12% and offering to cover 70% of the cost for setting up charging infrastructure among others. [Positive]

Local tariffs and duties – India has historically had very high tariffs for importing cars into the country in order to protect the local manufacturing industry. Currently the tariff structure has been modified to some extent but a vehicle under INR 3.5 million (USD 40,000) would still attract a 70% base customs duty. The tariff is 110% for more expensive vehicles. It is significantly lower for commercial vehicles and those that are imported as completely knocked down kits (CKD). [Negative]

Points: 2

Thailand

Sales volume – Thailand sold 572,675 new cars in 2024 witnessing a 26.18% decline and EV sales did not do that well compared to the previous year although making up around 12% of the market by achieving sales of 66,732 units. [Negative]

Government subsidies – Thailand offers up to THB 100,000 (USD 3,000) subsidy for an EV priced between THB 2–7 million (USD 61,000–214,600) along with a reduction in excise duty and customs tax. [Positive]

Local tariffs and duties – There is a reduced excise tax of 2% and those not covered by a FTA there is an import duty of 40-60% applicable depending on the vehicles battery size and price. [Negative]

Points: 1

Singapore

Sales volume – With 43,000 new cars sold in 2024, including 14,448 EVs Singapore saw a small increase in car sales. [Positive]

Government subsidies – Various subsidies apply to EV buyers that include a rebate of 45% off the Additional Registration Fee (ARF) along with other incentives. [Positive]

Local tariffs and duties – There is a 20% excise duty and a 7% GST applicable plus a few other taxes. [Negative]

Points: 2

Vietnam

Sales volume – Car sales in Vietnam for 2024 were 340,000 units out of which 87,000 were fully electric. There was a 12.6% growth in the auto sector. [Positive]

Government subsidies – Full exemption of registration fees applies to all EVs. [Positive]

Local tariffs and duties – There have been some recent lowering of tariffs due to the signing of FTAs but most cars being imported from Europe or USA are still subject to around 35% tariff. [Negative]

Points: 2

Indonesia

Sales volume – 865,723 units were registered in 2024 and 43,188 of those were electric cars. There was a 53% increase in EV sales. [Positive]

Government subsidies – A VAT rebate is offered for cars that have a certain percentage of components manufactured in Indonesia. [Positive]

Local tariffs and duties – EVs enjoy a 100% import duty concession provided some conditions are met. [Positive]

Points: 3

Australia

Sales volume – 1,237,287 new vehicles were sold in Australia in 2024, showing a marginal growth in demand. EVs increased their market share to 7.4% with 91,292 registrations and a healthier demand. [Positive]

Government subsidies – Australia offers a variety of incentives at federal and state levels that include subsidies, discounted car registration fees and reduced stamp duty rates. There are interest-free loans available for EV purchases up to AUD 15,000 (USD 9675) and a AUD 1,000 (USD 645) grant towards the cost of a residential EV charger is also available in some states. [Positive]

Local tariffs and duties – Australia does not charge a tariff or fringe-benefit-tax (FBT)on EVs that fall below the luxury car tax threshold of AUD 89,332 (USD 57,600). [Positive]

Points: 3

New Zealand

Sales volume Across the ‘ditch’ (Kiwi slang for the Tasman Sea) from Australia new car sales plunged 20% in 2024 with 87,435 units taken off the lots. Demand for EVs took a massive 70% hit with just 6341 new cars registered last year. [Negative]

Government subsidies – There are currently no incentives available for individuals or businesses planning to transition to EVs and a NZD 76 (USD 45) per 1000 km road user charge (RUC) is being levied for operating EVs, which is equivalent to RUC for diesel vehicles. [Negative]

Local tariffs and duties – New Zealand does not charge any tariff for importing cars. A 15% GST applies that can be claimed back by businesses. [Positive]

Points: 1

Summary

Here is a graph that shows you the country wise market share of new electric car sales as a percentage of the total new car sales in 2024. Norway is the clear winner with 88.9% of all new cars sold in 2024 being fully electric. Japan and Mexico came out last with just 2% of all cars sold being EVs.

Sorted by New Car Sales in 2024

Country		New Car Sales		EV Sales	Mkt share	Subsidy	Highest tariff
China	🔺	31,436,000	🔺	11,000,000	35%	Yes	47%
USA	🔺	15,900,000	🔻	1,700,000	8.75%	No	145%
Japan	🔻	4,421,494	🔻	59,736	2%	Yes	0%
India	🔺	4,200,000	🔺	105,695	2.50%	Yes	110%
Germany	🔻	2,800,000	🔻	380,609	13.50%	No	35.30%
Brazil	🔺	2,480,000	🔺	62,380	2.50%	Yes	35%
UK	🔺	2,000,000	🔺	382,000	19.50%	Yes	10%
Canada	🔺	1,852,738	🔺	202,103	15%	Yes	100%
France	🔻	1,700,000	🔺	291,143	16.90%	Yes	45.30%
Mexico	🔺	1,500,000	🔺	31,293	2%	Yes	20%
South Korea	🔻	1,350,000	🔻	122,300	9%	Yes	30%
Australia	🔺	1,237,287	🔺	91,292	7.40%	Yes	0%
Indonesia	🔺	865,723	🔺	43,188	5%	Yes	0%
Thailand	🔻	572,675	🔻	66,732	12.00%	Yes	62%
Netherlands	🔺	381,227	🔺	132,166	35%	Yes	45.30%
Vietnam	🔺	340,000	🔺	87,000	25.50%	Yes	35%
Norway	🔻	128,691	🔺	114,409	88.90%	Yes	0%
New Zealand	🔻	87,435	🔻	6341	7.25%	No	0%
Singapore	🔺	43,000	🔺	14,448	33.60%	Yes	27%

Disclaimer: This report is based on the personal assumptions of the author, taking into account data available publicly from online sources. The author does not take any responsibility for the accuracy or authenticity of the data that have been attributed to their respective owners.

You can contact the author of this post – Indranil Bhattacharya on reachout@kilowattchronicles.blog