E-mobility: game changer made in China
Germans have traditionally been more cautious when it comes to innovations. Electric mobility is a prime example of fear of new things. While citizens and companies in other countries, such as the USA, Norway or China, are stepping on the accelerator when it comes to electric vehicles, there are still too few e-cars on the roads in Germany. Among other things, because the local automotive companies have “overslept” the trend in part. Find out how e-mobility is doing in other markets and how investors can benefit from this “sustainable” megatrend.
Electric mobility on the rise globally
Electric mobility has increased due to international UN climate protection goals, innovations and government subsidies developed from a niche topic to a global megatrend. Despite some challenges, it is clear that e-mobility is here to stay. However, there are significant differences in the production and willingness to buy e-cars worldwide.
According to an analysis by Virta, the spread of electric vehicles worldwide is at record levels. As early as 2023, around 14% of all new cars sold were electric, and now, according to VDA (Association of German Automobile Manufacturers) Almost every fifth passenger car sold globally is powered by electricity. At ten million units, 69% of this (previous year: 74%) are purely electric BEV vehicles. Growth is accelerating, particularly in Asia and parts of Europe.
Really strong BEV growth rates were reported according to a Study of berylls However, only achieved in some markets. While Norway is the undisputed leader in BEV sales in Europe, Finland has improved by one place and Denmark by three places, thus overtaking the Netherlands. Belgium has even improved by six places. These movements reflect developments in the tax models of the respective countries — where taxes on vehicles with internal combustion engines (ICEs) have been increased and taxes on zero-emission vehicles have been reduced, the market is booming.
Norway, for example, scores points as the absolute pioneer in the field of electric mobility with government funding programs, tax breaks and a clear political vision. As a result, almost 80% of all new cars there were powered by electricity as early as 2023. In contrast, Germany has fallen four places behind in the rankings and the UK has even lost seven places — two countries in which government subsidies for e-cars have been reduced or stopped altogether.
Asian car manufacturers set the tone
Viewed globally, China has established itself as a pacemaker: More than half of all e-cars produced worldwide come from Chinese factories. It is interesting that, in contrast to German car manufacturers, for example, Asian car manufacturers often have no automotive history. For example, the electronics giant has Xiaomi, known as a smartphone giant, launched its first e-sedan in 2024. With success: Total deliveries of the company's first model exceeded around 150,000 vehicles by January 2025, as announced by Xiaomi founder, chairman and CEO Lei Jun. That is why Xiaomi allegedly wants to launch its second vehicle as early as the first quarter of 2025, which, according to media reports, should compete with the Tesla Model Y.
The Chinese industry giant BYD looks back on a very long history that dates back to the 1990s. However, today's conglomerate focused on manufacturing rechargeable batteries for a long time. BYD only entered the e-car business in 2003, quickly gained market share and delivered last year Head-to-head race with Tesla and third place in the global e-mobility ranking.
The rise of Asian manufacturers, particularly from China and South Korea, has permanently changed the automotive industry. Manufacturers such as BYD, NIO and Geely set standards worldwide in technology, efficiency and sales prices. These developments show how the automotive sector is breaking away from traditional structures.
However, experts warn that wrong political decisions could slow down momentum in Europe. In addition to the already mentioned lack of purchase incentives - e.g. in Germany - high battery costs and an inadequate charging infrastructure are challenges that must be solved. Nevertheless, market analyses see a clear trend: The global transformation to electric mobility is in full swing. Pioneering countries such as Norway and boom regions such as China show that ambitious strategies and technological innovation are the key to success. Asian manufacturers have permanently changed global market dynamics and are proving that new players without a traditional automotive background can be successful.
Investors should take this trend into account when diversifying their portfolio and mention investments in e-mobility. For example, via FINEXITY. The project LightAcross! represents an exciting investment opportunity in the emerging e-mobility market in Southeast Asia.
