Over a quarter of new cars sold so far this year are electric as emerging markets reshape the global EV race

Emerging markets are driving the growth in Chinese EV exports. Since mid-2023, almost all the growth in Chinese EV exports has come from non-OECD markets. Brazil, Mexico, UAE and Indonesia are among the ten largest destinations for Chinese EV exports this year as their governments have introduced policies to support EV adoption, from reduced taxes to incentives for domestic manufacturing.

As more countries take up EVs, the impact on fossil fuel demand is already visible. EVs are three times more efficient than internal combustion engine vehicles, which means they deliver large reductions in oil use even in countries that still rely heavily on fossil fuels for power generation. In Brazil, where electricity is mostly clean, battery electric vehicles cut fossil fuel demand by around 90%. In Indonesia, they cut it by close to half.

Graham added: “The assumption that EV growth will stall outside Europe and China is already outdated. Emerging markets will shape the future of the global car market. The choices made now on charging infrastructure and early support will determine how fast this momentum continues.”