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BEIJING / WAM
The International Energy Agency (IEA) has emphasised the critical role of smaller and affordable electric vehicles (EVs) in driving global adoption, particularly in emerging and developed markets.
While EVs often offer lower lifetime ownership costs due to reduced fuel and maintenance expenses, high upfront prices remain a barrier. The IEA’s Global EV Outlook revealed that up to 95 percent of EV sales in 2023 across major emerging economies were large, high-end models, inaccessible to mass-market consumers.
Smaller, affordable EV models launched recently have gained popularity, especially in China, where compact vehicles dominate the market. In 2024, nearly 95 percent of small car sales in China were electric, driven by intelligent features traditionally reserved for luxury vehicles, according to a China Economic Net report.
Plug-in hybrid electric vehicles (PHEVs) are also gaining traction globally, addressing concerns over mileage and charging infrastructure. Chinese brands accounted for over 70 percent of global PHEV sales in the first quarter of 2024, with significant export growth to Asia, South America, and North America.