Global Electric Car Sales Remain Below 1% Despite Incentives

Electric car sales in 2013 failed to reach the breakthrough many policymakers and manufacturers had hoped for, with battery-powered vehicles accounting for less than 1% of new car sales across most developed markets. The figure highlights the scale of the challenge facing the industry, despite substantial government incentives and investment in electric mobility.

Incentives such as tax breaks and exemptions have been widely adopted by governments aiming to encourage the shift from petrol and diesel to electric vehicles. Yet, according to the International Council on Clean Transportation (ICCT), these fiscal measures alone have not been enough to trigger mass adoption. In most countries, consumer reluctance and infrastructure limitations continue to limit demand.

Norway and California stand out as exceptions. Both regions have seen higher electric vehicle uptake, supported by not just fiscal incentives but also strong non-financial policies. These include access to bus lanes, free parking, investment in charging infrastructure and clear regulatory targets. In Norway, for example, electric cars have become a common sight, prompting a government review of subsidies as sales outpace forecasts.

Slow progress towards global targets

The International Energy Agency set an ambitious target of 20 million electric cars on the road by 2020. With only around 200,000 electric vehicles sold worldwide in 2013, that goal appeared increasingly distant. For comparison, the Ford Focus alone sold over 1.1 million units globally in the same year.