Electric Vehicle Sales Growth Trends Expected Between 2023-2025

Electric Vehicle Sales Growth Trends 2023-2025

The electric vehicle (EV) revolution is accelerating at a rapid pace. Major automakers like GM, Ford, Mercedes-Benz, Hyundai and others have committed to transitioning large parts of their fleets to electric over the next 10-15 years. Government entities worldwide have set ambitious targets to phase out gasoline powered vehicles. BloombergNEF predicts that by 2040, 58% of all passenger vehicle sales will be electric.

Many experts have compared the rise of EVs today to the adoption curve that smartphones took in the late 2000s and early 2010s, where they went from non-existent to ubiquitous in under a decade. We may very well be on the cusp of a similarly disruptive transition that will see EVs cement themselves as a dominant personal transportation option in the coming years.

This blog post will provide an in-depth look at the major electric vehicle trends expected between 2023-2025. It will cover EV sales growth projections during this pivotal period, new EV models set to be released, advancements in battery technology that will enable longer ranges, charging infrastructure expansion plans, more affordable used EV options, and substantial policy support worldwide that seeks to accelerate the transition.

By 2025, many predict electric vehicles will have hit an inflection point where their lower total cost of ownership combined with intrinsic benefits around performance, convenience and sustainability make them a superior choice for most consumers over gas-powered cars.

Major New EV Models Coming in 2023-2025

Electric Vehicle Sales Growth Trends

Automakers are responding to surging consumer demand by substantially expanding their electric vehicle offerings in the coming two years. Nearly every major car manufacturer has announced plans to release several new EV models.

According to consumer reports, there are over 100 new fully electric vehicles slated to be released through 2025. This includes exciting new options in every major category – affordable compacts, family SUVs, trucks, vans, and luxury vehicles.

2023 EV Model Releases

  • Chevy Silverado EV Pickup:

Range of 400 miles on a charge which beats rival offerings to date. MSRP starts around $40,000.

  • Kia EV9 SUV:

Stylish SUV accommodating up to 7 passengers. Targeting 300 mile range. Likely priced around $50,000 before incentives.

  • Mercedes EQE Sedan:

The midsize luxury electric sedan expected to deliver up to 340 miles of range, starting around $75,000 before incentives.

2024 Electric Vehicle Models

  • Ford F-150 Lightning:

The electric version of America’s best selling truck for decades gets a revised, extended range model rated up to 500 miles by Ford.

  • Hyundai Ioniq 6:

Aerodynamic EV sedan targeting 300+ miles of range and a surprisingly affordable sub-$40,000 starting price point.

  • VinFast VF6/VF7:

Vietnam’s emerging EV maker is set to release 2 affordably priced electric crossover SUV models in the USA.

Notable 2025 Electric Vehicles

  • Tesla $25,000 Compact EV:

Tesla’s mass market model coming by 2025 and targeting a huge boost in total units sold.

  • Nissan Ariya:

Nissan’s stylish new crossover boasting up to 500 km (~310 mile) range.

  • Rivian Pickup:

Rivian is a promising EV truck startup backed by Amazon, and their well-reviewed R1T pickup goes into higher volume production by 2025 after being sold out years in advance already.

Given the incredible variety of EV makes, models, styles and prices coming in the next couple years, virtually any consumer will be able find an electric vehicle well suited to meet their needs and preferences.

Advancements in Electric Vehicle Battery Tech

One of the most important developments that will enable wider mainstream EV adoption is continued advancements around the battery technology that powers them. Since batteries remain one of the most expensive components of EVs, improvements that allow for greater range at lower costs directly address some of the key barriers to mass adoption.

  • Driving Range Improvements

The average electric vehicle driving range has gone up substantially in recent years, from around 100 miles in early 2010 models to 250+ miles today. By 2025, experts predict the average EV range will surpass 300 miles on a single charge. Some models coming to market over the next couple years are targeting 500+ mile ranges.

This range improvement is being enabled by evolutions in battery chemistry as well as sophisticated battery management systems optimizing vehicle efficiency.

  • Battery Chemistry Enhancements
  1. Continual improvements in energy density using existing lithium ion battery chemistry
  2. Emerging lithium iron phosphate (LFP) batteries gaining adoption, offering greater affordability and safety
  3. Developers racing towards advanced solid state batteries which are smaller, safer and pack more power

Cost Parity With Gas Vehicles by 2025

Substantial reduction in battery pack prices will directly reduce EV sticker prices, reaching cost equivalence with gas powered vehicles:

  1. 2020: Battery packs averaged $156 per kWh
  2. 2022: Average cost fallen below $100 per kWh
  3. 2025 forecast: Experts predict battery costs reaching around $60 per kWh

At price parity for the battery, EVs reach the same upfront cost to consumers as gas vehicles. This cost parity milestone, expected by 2025, will dramatically accelerate adoption.

More EV Charging Infrastructure Build Out

For mainstream EV adoption to truly accelerate, additional public charging infrastructure is critically needed to alleviate consumer range anxiety. Fortunately, there are major public and private investments planned over the next 3 years to rapidly expand charging networks.

Current State of EV Charging Networks

There are over 200,000 public charging ports installed globally as of early 2023. The majority of these exist in China, followed by Europe and North America. Charging speeds vary widely, from older Level 2 chargers that need hours to fast charging DC ports than can add hundreds of miles of range in under an hour.

While the infrastructure is growing, further expansion is urgently needed to support the growth wave of EVs expected. Charging remains inconvenient compared to the ubiquity of gas stations.

Government Funding Charging Expansion

  1. Bipartisan infrastructure law invests $7.5 billion in the U.S. to build out a national charging network with at least 500,000 chargers by 2030
  2. European Union investing over $1 billion in next generation EV charging technology
  3. Similar public investments happening globally – South Korea, Australia, Canada etc.

Charging Networks Growth Plans

Major charging providers like ChargePoint, EVGo, and Tesla’s Supercharger network have announced aggressive expansion plans between 2023-2025:

  1. ChargePoint plans to take its global public and home charger count from approx 200,000 today to 2.5 million by 2025
  2. EVGo growing its nationwide U.S. fast charging network from over 850 currently to over 3,500 by 2025
  3. Tesla multiplying Supercharger station count from 3,500 to over 9,000 by 2025

The influx of government support combined with private industry growth will help alleviate charging gaps and drivers’ anxiety around vehicle range in the coming few years.

Lower Priced and Used EV Options Expand

While most electric vehicle models released still sit in higher price brackets, there are an expanding number of lower priced EV options coming to market, both for brand new and used vehicles. This will further boost mainstream adoption.

Declining Prices Among New EVs

As outlined earlier, batteries are the most expensive component of EVs. So as battery prices fall, automakers are able to reduce EV sticker prices across the board. From 2020 to 2022, average new EV prices dropped nearly $4,000 in the US. And further price declines are expected, meaning more compellingly priced models.

Most Affordable New EVs Available

Some examples of the most affordable 2023 EV models include:

  1. Nissan Leaf: Starts under $28,000 before tax incentives
  2. Chevrolet Bol: Around $26,000 before available $7,500 tax credit
  3. Mazda MX-30: $30,000 starting price point
  4. Mini Cooper Electric: Just over $30,000 before incentives

So there are an expanding set of options for new EVs with realistic price points under $30,000.

Used Electric Vehicle Market Growth

The used EV market is also seeing booming supply growth. As leased EVs reach end of term and early owners trade up to newer models, high quality used inventory expands rapidly. It’s estimated used EV sales will reach nearly 3 million globally in 2025.

For savvy buyers, lightly used EVs can represent huge value, with battery ranges and capacities that rival brand new models at substantially lower cost. Certified pre-owned EV programs also offer warranties and reassurance around battery health.

Dealers anticipate supply addressing the strong demand for used EVs in coming years thanks to ballooning new EV volumes. There will be no shortage of affordable, reliable used EV options for more budget conscious buyers.

Substantial Policy Support Worldwide

Governments worldwide recognize the environmental and economic imperatives of transitioning away from gas powered vehicles towards electric. As a result, we are seeing an influx of policy support including regulations, mandates, and purchase incentives aimed to rapidly accelerate EV adoption.

Vehicle Emission Regulations

One of the strongest policy mechanisms are fleet-wide regulations enforced on automakers:

  1. EU regulations require average CO2 emissions from new cars to reduce 55% by 2030 and hit 0 by 2035, effectively mandating 100% EV sales
  2. China also instituting Zero-Emission Vehicle (ZEV) mandates requiring increasing percentages of manufacturers’ sales to be electric

Similar regulations are now in effect or under development from Canada to India to many European countries all requiring automakers to transition their offerings to sustainable electric drivetrains.

Purchase Incentives and Rebates

To stimulate consumer demand in the near term, governments globally are offering generous tax credits, rebates, and additional perks for buyers:

  1. U.S. federal tax credit up to $7,500 for qualifying EV purchases
    – State level incentives can add thousands more – New York rebate up to $2,000
  2. Additional incentives like HOV lane access, reduced electricity rates for charging, free public parking etc.

The Impact

While automakers have found it challenging to meet various regulatory pressure in the past, most now see government policy accelerating their own internal targets to electrify models earlier than originally planned.

Within the next couple years, expect electric vehicles firmly out of niche status and well on the way to baseline expectation from the world’s leading automakers thanks to supportive policy environments.

The outlook for massive electric vehicle adoption between now and 2025 is overwhelmingly positive from just about every perspective – consumer demand, model availability, technology improvement, charging access, affordability and government policy.

Electric vehicles statistics and projections :

EV Trend 2022 2023 2024 2025
Global EV Sales 10 million 15 million 20 million 30 million
EV Market Share ~10% ~15% ~20% ~25%
Average EV Range 250 miles 275 miles 300 miles 325 miles
Average EV Price $55,000 $52,000 $48,000 $45,000
Battery Pack Price $100/kWh $80/kWh $70/kWh $60/kWh
Public EV Chargers ~200,000 ~500,000 ~1 million ~1.5 million
Used EV Sales 1 million 2 million 2.5 million 3 million

The Electric Vehicle Revolution Is Here: Key Takeaways

Across the many trends covered in this article – from EV sales growth and model availability, to battery advancements and government policy -we see the electric vehicle revolution accelerating rapidly in the pivotal years between 2023 and 2025.

After a long incubation period, electric vehicles are no longer a niche product reserved for the eco-conscious or technophile early adopters.

In the next 2-3 years, compelling electric options across every major vehicle category and price range will make their intrinsic environmental and performance benefits available to mainstream audiences worldwide.

By 2025 EVs will firmly establish themselves as a dominant personal transportation paradigm that can outcompete ICE vehicles across the board – on drivetrain efficiency, lifetime ownership costs, convenience, and high-tech creature comforts.

Even drivers with range anxiety or budget constraints will find ideal used and new EV options as supply and variety dramatically steps up to meet ballooning demand.

For those in the market for a new or used car purchase in the next few years, educate yourself on the new EV options coming for your lifestyle needs.

Compare total lifetime ownership costs accounting for lower maintenance and energy expenses against equivalent ICE models. And enjoy the smooth, nearly silent yet grinningly quick acceleration when you switch to electric for your next vehicle.

Between purpose-built EVs on dedicated next-gen platforms offering unprecedented performance and efficiency, to converted classics preserving nostalgic designs while dropping emissions, the electric movement has something for just about everyone.

For the pragmatic everyday commuter vehicle to the most exotic sports cars aimed at millionaires, the age of electric vehicles has arrived. Fasten your seatbelts for the ride.

I hope you enjoyed this in-depth look at the major electric vehicle trends between now and 2025. Please let me know in the comment section if you have any other questions or topics you would like explored around EVs and the future of sustainable transportation.

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