20 Countries with the Most Electric Vehicles in 2023

Published on August 29, 2023 at 4:32 pm by Affan Mir in Industries, Lists, News

In this article, we explore the top 20 Countries with the Most Electric Vehicles in 2023. If you wish to bypass the comprehensive examination of the EV industry, you can directly proceed to the section highlighting the 5 Countries with the Most Electric Vehicles in 2023.

Over recent years, there has been a rapid growth in the presence of electric vehicles on the streets. As governments around the globe commit to environmental pledges, it’s anticipated that electric vehicles, once considered rare, will become a common sight on roads everywhere.

While the positive environmental impact of electric cars is unquestionable, they also offer various advantages to diverse industries, leading to heightened profits and productivity. This growth can lead to investment opportunities as the market expands. For investors seeking high-potential, growth-oriented sectors, small-cap electric vehicle stocks might be the gold mine they’re looking for. To check out some EV stocks that you can add to your portfolio, check out 10 Best Small Cap Electric Vehicle Stocks to Buy.

The EV Industry

Despite Covid-19 and supply chain issues since 2020, both the EV and battery indices have outperformed the top-ten automakers and the broader market benchmark. In the first half of 2020, EV and battery indices recorded substantial growth by 70% and 40% respectively. This growth coincided with announcements of green recovery packages, net zero pledges, and increasing acceptance of EVs as the future of transportation, particularly in Europe, Japan, Korea, and the Scandinavian countries.

It is evident that for automobile producers who have already dedicated resources to develop environmentally-conscious vehicles, the surge in enthusiasm and utilization of electric cars will undoubtedly yield favorable outcomes. Major names such as Tesla Inc (NASDAQ:TSLA) and Li Auto Inc (NASDAQ:LI) grew by 134% and 92% respectively at the time of market close on June 11. Companies are leading the way with state-of-the-art electric vehicles. At its Q2 earnings call, Tesla Inc (NASDAQ: TSLA)’s CEO and product architect Elon Musk said:

“In Q2 we achieved record vehicle production and deliveries, and record revenue of about $25 billion in a single quarter. And Model Y became the bestselling vehicle of any kind globally in Q1, surpassing the likes of Corolla and Golf. So, it was the number one vehicle of any kind, including vehicles that are sold at a far lower price. This is, I think, an incredible achievement by the Tesla team, and just a huge thank you to our customers for their support. This came in spite of high interest rates and a lot of macro uncertainty. And nonetheless, we managed to achieve an operating margin of about 10%. We continue to target 1.8 million vehicle deliveries this year.”

Almost all of the major vehicle manufacturers including Ford Motors Co (NYSE: F) and General Motors Corp (NYSE: GM) now offer an electric alternative in the automotive industry. Ford aims for 50% sales from EVs by 2030, investing $50 billion through 2026 in plants and software. EV versions of popular models like the F-150 Lightning, Mustang Mach-E SUV, and E-Transit commercial van are already on sale. Similarly, General Motors Corp (NYSE:GM) targets 100% global EV sales by 2035, GM will launch 30 new EVs with an investment of $35 billion by 2025. Emphasizing fresh models, current offerings include Cadillac Lyriq, GMC Hummer; Hummer SUV, and Chevy Silverado in 2023.

Electric vehicles also transform the transportation sector. Over the last decade, app-driven transportation services like Uber Technologies (NYSE: UBER) have emerged, which offers a ridesharing app and more. Its stock surged 89% this year, with analysts predicting a further 9% increase based on the average price target. Moreover, companies like FedEx (NYSE:FDX), Amazon.com Inc (NASDAQ:AMZN), and PepsiCo Inc (NASDAQ:PEP) are converting large portions of their delivery trucks and vans to EVs. These moves will increase the demand for commercial EVs and Amazon alone will invest $970 million in electric vehicles for its European fleet. These companies represent only a few of the companies currently in the process of shifting to electric vehicle fleets, and an increasing number are adopting this transition daily. In reaction to this trend, automobile manufacturers are also intensifying their efforts in the development of commercial electric vehicles.

The EV sector could offer tremendous upside potential for investors ready to explore this high-reward market. Bloomberg predicts the EV market to grow to $8.8 trillion by 2030 and $56.7 trillion by 2050, mainly driven by passenger EVs. If the sales of electric vehicles continue to progress at the estimated rate then around $60 billion worth of electric batteries will be needed to meet demand. In the pursuit of advancing electric vehicle (EV) technology, U.S. manufacturers are intensively focusing on developing new battery technologies. These efforts are propelled by federal mandates and incentives. The ideal battery is expected to be safer, more affordable, and offer longer driving ranges. EV battery manufacturers rely on imported minerals, to combat this, there’s a push to replace conflict minerals with domestic alternatives, reduce reliance on certain minerals, and develop new battery types like solid-state batteries. Federal laws such as the Inflation Reduction Act and the Infrastructure Investment and Jobs Act are driving innovation in the industry. The aim is to create batteries that outperform expectations while meeting cost and sustainability criteria. This development is crucial not only for addressing environmental concerns but also for reducing dependence on geopolitically sensitive resources. Therefore investing in EV battery stocks has also never been more promising. Vehicle manufacturers and battery makers plan to invest $860 billion globally by 2030.

Electric utility companies like Ohmyhome Limited (NASDAQ:OMH), IES Holdings Inc. (NASDAQ::IESC), and ABM Industries Inc. (NYSE:ABM), who are top manufacturers of EV charging stations also stand to gain as more EV owners will install home charging points. Other utility companies should anticipate increased demand and potential benefits from higher electricity use. Undoubtedly, the electric vehicle industry’s trajectory suggests unprecedented growth.

With that said, here are the 20 countries with the Most Electric Vehicles in 2023.

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Our Methodology

The International Energy Agency (IEA) Global EV Data for 2023 provides data on countries with the highest electric vehicle adoption as of 2022. The data was updated on August 10, 2023. Using this data we compiled the list of countries with the most electric vehicles in 2023 Should you be interested in investing in the EV sector, here are the 11 Best EV Stocks for the Long Term.

20 Countries with the Most Electric Vehicles in 2023

20. Spain

EV market share: 8.89%

Spain offers a 15% income tax rebate on EV purchases by year-end, encouraging clean driving. The government will invest €24 billion to boost EV design and use.

19. Italy

EV market share: 9%

On April 7, 2022, the Italian PM, Mario Draghi signed a decree for 650 mil1on euros/year (2022-2024) incentives on electrified cars and up to 6000 euros’ subsidy for electric car buyers.

18. Korea

EV market share: 9.39%

Korea’s 2023 Electric Vehicle Subsidy Reform Plan establishes full subsidies on EVs priced below 57 million won to raise subsidized EV units to 215,000 (a 34% increase from 2022). EV manufacturers qualify for a 200,000-won charging infrastructure subsidy. Additionally, vehicles featuring V2L technology, enabling battery power sharing, receive an extra 200,000-won innovation technology subsidy.

17. Canada

EV market share: 9.39%

The Government of Canada offers point-of-sale incentives of C$2,500 to C$5,000 for consumers who buy or lease an EV. Other incentives aim for local production, alongside rebates and policies, and developing charging infrastructure. Canada tops the list of countries with the most electric vehicles in 2023 in the American continent.

16. New Zealand

EV market share: 13%

The New Zealand Government provides cash incentives for EV purchases, applicable to vehicles under NZ$80,000. Tesla Inc (NASDAQ: TSLA) leads with nearly 40% EV market share, though several premium brands don’t qualify for incentives.

15. Israel

EV market share: 13%

The Israeli government provides incentives for EVs, such as lower purchase taxation. Israel ranks top in the list of countries with the most electric vehicles in 2023 in the middle east. According to the IEA, Israel has an EV market share of 13%, making it the 15th pick on our list of countries with the most electrical vehicles.

14. France

EV market share: 21%

In 2019, around €264 million funded incentives for about 42,800 electric cars and 8,000 light commercial EVs. For 2020, the government allocated €395 million to aid the purchase of around 100,000 electric vehicles.

13. Portugal

EV market share: 22%

Portugal encourages EV ownership with tax benefits, grants, and charging infrastructure. The Environmental Fund earmarks €4M for 2021 incentives: €3,000 for individuals buying a new BEV (1 vehicle/person).

12. Austria

EV market share: 22%

Austria offered VAT deduction, exemption, and bonus until the end of 2022, additional incentives are also granted by provinces.

11. United Kingdom

EV market share: 23%

In the UK, the growing EV sector aligns with enhanced charging network efforts. The Local electric vehicle infrastructure (LEVI) pilot, with £10 million funding, aims for 1,000 local charge points in England.

10. Switzerland

EV market share: 25%

Switzerland’s EV adoption favors premium brands like Tesla Inc (NASDAQ: TSLA). Government focuses on balanced charging use via incentives and marketing idle points, adapting national energy strategy while avoiding decisive state intervention.

9. Belgium

EV market share: 26%

Belgium reduces EV incentives, raising EV costs. Despite the subsidy’s end, tax breaks encourage EV adoption. Brussels mandates EV charging in all car parks by 2025. Non-electric company cars are to be banned by 2026.

8. China

EV market share: 29%

Since 2009, China has been providing financial incentives to EV manufacturers producing vehicles for various purposes, including buses, taxis, and individual consumers. China provides substantial incentives for new EV buyers and boasts the largest fleet of electric cars globally. China tops the list of countries with the most electric vehicles in 2023 in Asia.

7. Germany

EV market share: 31%

In Germany, the Federal Government allocated up to €600 million to aid the acquisition of over 300,000 electric vehicles till 2019, matched by automakers. A €4,000 bonus is provided for new all-electric vehicle purchases.

6. Netherlands

EV market share: 35%

The Netherlands have noteworthy tax exemption and subsidy scheme for individuals who buy/lease an EV car. Currently, the Netherlands is concentrating on public EV charging station development and offering charger incentives for businesses.

Click to continue reading and see the 5 Countries with the Most Electric Vehicles in 2023.