European Market Monitor: Cars and vans (May 2025) – International Council on Clean Transportation

Global Growth of Battery Electric Vehicle (BEV) Sales and Sustainable Development Goals (SDGs)

Emerging Markets in Southeast Asia

Since 2023, Battery Electric Vehicle (BEV) sales have demonstrated significant growth in emerging markets, particularly in Southeast Asia. Thailand and Vietnam have shown remarkable progress in 2024:

1. Vietnam:
   • BEV market share doubled from 2023, reaching 22% in 2024.
   • In Q1 2025, BEVs accounted for approximately 41% of new car registrations, nearly twice the 2024 average.
   • Growth driven by domestic production, led by local manufacturer VinFast.
   • Supportive government policies such as registration fee exemptions for EVs.
2. Thailand:
   • BEV market share doubled to 18% in 2024.
   • Thailand is a major production hub, responsible for 43% of motor vehicle production in the ASEAN region.
   • Government targets zero-emission vehicles to represent 30% of all vehicle production by 2030.
   • Tax incentives and subsidies have been implemented to stimulate EV growth.
   • In Q1 2025, BEVs comprised 23% of the market, with Plug-in Hybrid Electric Vehicles (PHEVs) nearly tripling compared to 2024 averages.

Latin America’s Expanding BEV Market

Latin America has also experienced notable BEV market growth in 2024, particularly in Colombia and Mexico:

• Colombia:
  • BEV market share reached 5% in 2024, tripling year-over-year sales.
  • In Q1 2025, BEV market share increased to 8%.
  • Growth supported by government incentives, targets, and expanded charging infrastructure.
• Mexico:
  • BEV market share was 4% in 2024, with sales tripling year-over-year.
  • In Q1 2025, a shift toward PHEVs was observed: BEV share declined by 1 percentage point, while PHEV share increased by 2 percentage points.
  • Government policies and infrastructure development contributed to this trend.

Developments in Türkiye and Europe

• Türkiye:
  • BEVs accounted for 8% of new vehicle registrations in 2024, a 3 percentage point increase from 2023.
  • In Q1 2025, BEV market share surpassed 13%, indicating continued growth.
• Europe:
  • BEV market share declined by 1 percentage point in 2024 to 14%.
  • However, a rebound occurred in Q1 2025, with market share rising to 16%.

Alignment with Sustainable Development Goals (SDGs)

The growth of BEV markets globally contributes directly to several United Nations Sustainable Development Goals, including:

• SDG 7: Affordable and Clean Energy – Expansion of EV production and supportive policies promote clean energy use in transportation.
• SDG 9: Industry, Innovation, and Infrastructure – Development of domestic manufacturing (e.g., VinFast in Vietnam) and charging infrastructure enhances sustainable industrialization.
• SDG 11: Sustainable Cities and Communities – Increased adoption of zero-emission vehicles reduces urban air pollution and improves public health.
• SDG 13: Climate Action – Transition to BEVs supports reduction of greenhouse gas emissions from the transport sector.

Conclusion

The rapid growth of BEV sales in emerging markets such as Southeast Asia and Latin America, along with continued progress in Türkiye and Europe, reflects a global shift toward sustainable transportation. These developments are strongly supported by government incentives, domestic production capabilities, and infrastructure expansion, aligning closely with the achievement of multiple SDGs aimed at fostering environmental sustainability, innovation, and climate resilience.

1. Sustainable Development Goals (SDGs) Addressed or Connected

1. SDG 7: Affordable and Clean Energy
   • The article discusses the growth of battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs), which are part of the transition to clean energy and sustainable transport.
2. SDG 9: Industry, Innovation and Infrastructure
   • References to domestic production of EVs, manufacturing hubs, and expanded charging infrastructure relate to building resilient infrastructure and fostering innovation.
3. SDG 11: Sustainable Cities and Communities
   • Promotion of electric vehicles supports sustainable urban transport systems and reduces pollution.
4. SDG 13: Climate Action
   • Growth in zero-emission vehicles and government policies to increase EV adoption contribute to climate change mitigation.

2. Specific Targets Under the Identified SDGs

1. SDG 7 – Target 7.2: Increase substantially the share of renewable energy in the global energy mix.
   • Implied through the promotion of electric vehicles powered by cleaner energy sources.
2. SDG 9 – Target 9.2: Promote inclusive and sustainable industrialization and, by 2030, significantly raise industry’s share of employment and gross domestic product.
   • Supported by local manufacturing growth (e.g., VinFast in Vietnam) and production hubs (Thailand).
3. SDG 11 – Target 11.2: By 2030, provide access to safe, affordable, accessible and sustainable transport systems for all.
   • Government incentives and infrastructure expansion for EVs contribute to sustainable transport.
4. SDG 13 – Target 13.2: Integrate climate change measures into national policies, strategies and planning.
   • Governments setting targets for zero-emission vehicles and providing tax incentives.

3. Indicators Mentioned or Implied to Measure Progress

1. Market Share of BEVs and PHEVs:
   • Percentage of new car registrations that are BEVs or PHEVs (e.g., Vietnam’s 41% BEV share in Q1 2025).
2. Production Share of Zero-Emission Vehicles:
   • Thailand’s goal for zero-emission vehicles to account for 30% of all vehicle production by 2030.
3. Growth Rate of EV Sales:
   • Year-over-year increases in BEV sales in various countries (e.g., Colombia’s tripling of BEV sales).
4. Expansion of Charging Infrastructure:
   • Implied as a factor supporting EV market growth, though not quantified in the article.

4. Table of SDGs, Targets, and Indicators

Source: theicct.org