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Industry forecast for Electric Vehicles in 2023 and Beyond

SGAnalytics_Blog_Industry forecast for Electric Vehicles in 2023 and Beyond
Published on Mar 16, 2023

The automotive world has witnessed a storm in the last few years, with sales decreasing globally across every category except electric vehicles. In most regions, EVs (Electric vehicles) continue to grow in market share and number. With Covid receding and the world getting used to the looming crisis due to the war in Ukraine, EVs are expected to witness a killer 2023. 

Ever since Tesla introduced the very first EVs, the industry players started concentrating on rolling out electric vehicles around the world. The affordable mainstream EV has just been delayed. And with supply ramping up dramatically, the sector will witness a flood of new model types. 

Read more: Spotlight on EV Battery Technology as the US looks to Challenge China’s Dominance 


The Electric Vehicle industry revolution is a story of disruption. It is not just a change that is powering the wheels; it is the potential that is resetting the entire automobile industry. While nobody predicted events like the pandemic and the war in Ukraine could have a devasting impact on the automobile industry, the sector felt a blow due to the impact on the global economy. The resulting problems have pushed the arrival of affordable EVs by a few years. While self-driving can change cars' role in our lives after years of development around the basic idea of a four-wheel vehicle, EVs will inevitably become the same price and cheaper than internal combustion. But 2023 is being perceived as a momentous year for EVs. 

2022 was the year when the electric vehicle market entered the mainstream. While everyone was not open to buying an EV initially, people are measuring up to the thought now. Driven by policy initiatives from governments and with billions of investments from automakers, the EV industry is beginning to take shape. Over the next year, that landscape is set to develop beyond the foundations of 2022.  

Electric Vehicle Predictions for 2023 and Beyond 

  1. The Rise in EV Models and Sales  

Electric vehicle sales started surging in 2022 and dominated the sales. Some of the significant EV models include Tesla's Models S, Y, and 3, Chevrolet’s Bolt, and Ford’s Mustang Mach-E. Now in 2023, every automaker is working to unveil a slew of impressive EVs for the market. While many have geared up to offer luxury, the automobile industry can expect a major transition to electric vehicles, with new models coming out that will be priced much more affordably.   

Read more: Sustainability Outlook: Top Emerging Trends in 2023 and Beyond 

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The Inflation Reduction Act, passed by the Biden administration, is already having significant effects on the EV industry in the US as automakers are working to onshore their supply chains and factories. However, with certain aspects of the EV tax credit rules being delayed till March 2023, EV sales are expected to take off in the first quarter in 2023 

In addition, with the sheer number of new EVs in the market picking up, a recent McKinsey report predicted that the legacy automakers and EV startups are likely to produce up to 400 new EV models by 2023. All the new models will give Tesla a run for its money, but Tesla is expected to still dominate the U.S. (United States). The EV market in 2023. Brands such as Ford, Hyundai, and Kia are following closely behind as they ramp up their lineups and production capacities in 2023. Industry experts expect the market for secondhand EVs to also creep up in 2023, making it easier for people to afford a zero-emission vehicle.   

  1. More Investment to get Charging Right  

The market share of EVs in the U.S. is estimated to reach 12% next year. Irrespective of the number, the fact remains that the automobile sector will witness millions more EVs hit the streets globally. This implies that all the ancillary services to keep the EVs running will need to step up. In 2023, the industry is also expected to witness a stream of new investments from government, utility, and private firms that will help facilitate a charging infrastructure, energy storage, and energy transmission.  

Electric vehicle

Ensuring the transition is a smooth one is not just about building more EV chargers, but also maintaining chargers should be a priority. While the availability of public charging is an obstacle, keeping them running is equally challenging. Automakers need to integrate some tech to help manage maintenance, servicing, and upgrades for EV chargers.   

Read more: Sustainability in Tech: 3 Ways for Companies to Become More Sustainable  

  1. Software-defined Electric Vehicles will Really Take Over  

Every automaker has talked about the software-defined vehicle throughout 2022. With the concept being inherently linked to the electric vehicle, in 2023, the industry will really get a chance to witness what that means. General Motors is set to launch Ultifi - an end-to-end vehicle software platform that offers OTA software updates, cloud connectivity, and vehicle-to-everything communication. With Ultifi, drivers will be able to purchase apps, services, and features, making it a perfect example of how automakers are trying to personalize vehicles to the needs of the individuals. This personalization will lead to a rise in subscription-based services in cars as well.   

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  1. China is set to Join the Fleet with Other Nations 

Today EVs have become synonymous with Tesla. But this scenario is set to change. Other manufacturers are expanding their horizons and introducing new EV frameworks and models globally. Nissan has returned to the EV market with high-quality Ariya, and other Japanese brands are also introducing EV roadmaps that have been lagging behind the competition. EVs in Norway are now 80% of sales, and the country’s advanced status is being perceived as a model of the future. BYD, or Build Your Dreams, a global bestseller and second bestseller of plug-in EV cars after Tesla, is Chinese.  Most of these are being sold in China, but they are beginning to appear elsewhere. Chinese car companies also see EVs to decrypt the Western automotive market.  

But China is not the only country scrutinizing and enhancing its car market share through EVs. South Korean Hyundai Motor Group many times have already introduced some great electric cars, including the Hyundai Kona Electric, Kia Niro EV, IONIQ 5, Kia Soul EV, Kia EV6, Genesis GV60, GV70 Electrified and Electrified G80. And much more is coming in 2023, including the IONIQ 6. The even more revolutionary IONIQ 7 will also be entering production in 2023. 

Read more: How is Multi-stakeholder Assessment Helping to Create Long-Term Sustainable Value? 

Industry forecast for Electric Vehicles in 2023 and Beyond

The Rise of Electric Vehicles Fleets in 2023 

Many fleet operators started adopting EVs in 2022 and are now aiming to reach whatever carbon emissions goals they have set for themselves. Hertz is planning to buy 65,000 Polestar vehicles, 100,000 Teslas, and 175,000 General Motors vehicles to reach its set goal of having 25% of its fleet electric by the end of 2024.  

Electric vehicles have started emerging from the fringes and transitioning into practical commuter vehicles due to the work of Tesla and other automakers. The growing climate crisis is compelling countries to wean consumers and companies off gasoline. By 2030, Germany is planning to ramp up their number of EVs to 10 million to be on its roads. California is also aiming for 5 million. Canada, an equal participant in the race, is eying for 100% of new car sales to be zero-emission vehicles by the year 2040.  

The enormous and positive market outspread of EVs in the last few years globally is giving rise to several opportunities for businesses to invest in. There are many safe ways to put investments in the EV sector that will prove profitable for new business opportunities in the long run. In 2023, EV purchases will only ramp up, particularly as commercial EV makers get their production lines up and running.  

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