EV Readiness Index 2022

July 2022

The briefing introduces the 2022 Electric Vehicle (EV) Readiness Index which has been produced for 37 countries globally. The index seeks to assess the readiness of each country across four key pillars: Market Maturity, Income and Spending, Infrastructure and Incentives. It provides stakeholders with a more solid understanding of the opportunities and challenges of each market’s electric vehicle industry.

USD 1,325
Request More Information

Key findings

Western Europe leads

Western European countries were the best performing, according to the EV Readiness Index. The top five were Norway, Austria, the UK, the Netherlands and Sweden. Their impressive performance was supported by strong EV market factors, high consumer incomes and generous incentives.

Emerging markets struggle

Emerging markets have fallen behind in the race to adopt EVs. Brazil, South Africa, Thailand and India were among the worst-performing major economies. The lack of subsidies and tax breaks remains a major problem as local consumers are not incentivised to buy electric vehicles.

All pillars are key to EV attractiveness

The best-performing countries are generally consistent in their performance across all pillars of the EV Readiness Index. This includes boasting a high market uptake of EVs, having strong purchasing power, well-developed infrastructure and availability of incentives.

Market Maturity

Some of the most saturated markets with EVs are wealthy Western European countries such as Norway, Ireland and Germany. This can be influenced by several factors including the provision of generous incentives, greater sustainability awareness, a large supply and choice of EVs and consumer preference for non-fossil fuel vehicles.

Income and Spending

More affluent countries have performed better in the EV Readiness Index thanks to the larger availability of disposable income to cover the costs of EVs which usually carry a higher price tag than their fossil fuel counterparts. However, there are exceptions such as the US, Canada and Japan which have performed poorly in the EV Readiness Index.

Infrastructure

The future adoption of EVs will rely heavily on the expansion of the EV charging network. Yet this remains a struggle in many countries, which constrains EV take-up. This also applies to some developed markets such as Norway where electric vehicle expansion has outpaced the installation of EV charging stations.

Incentives

Some of the best-performing countries in the EV Readiness Index have a large and generous provision of incentives ranging from purchase subsidies and tax breaks to free or reduced parking fees for EV holders. However, in light of the increased uptake of EVs, some countries have curbed or reduced the availability of incentives as it can be a large burden on national budgets.

Tax reforms will be needed

Adoption of electric vehicles will require revision of the tax system, as lower incomes from fuel and road taxes make it more difficult to fund transportation infrastructure investments. Countries will need to change their tax structure and introduce new taxes based on road usage or electricity usage.

Tipping point for EVs to be reached in 2035

The tipping point in electric vehicle adoption is forecast to be reached in 2035, driven by incentives to electric vehicle buyers and government regulations. Although individual countries can reach the tipping point sooner, faster electric vehicle adoption in emerging and lower-income countries remains constrained by higher vehicle prices and insufficient charging infrastructure.

Introduction

Scope
Key findings (1)
Key findings (2)

Overview

Norway top as Western European countries lead in the EV Readiness Index
Lack of incentives stall EV development in emerging markets
Overview of the EV Readiness Index by pillar and region
Countries must rely on several measures to accelerate EV adoption
Stricter regulation and consumer income growth to lift EV demand
Regulations on internal combustion engine vehicle sales in top markets
Incentives for electric vehicles might be required until 2035
Investments into electricity generation will be needed to meet the demand
Norway’s example shows changes in tax system might be required as EV adoption grows

Key markets

China
The US
The UK
France
Germany
India
South Korea
Brazil
Japan
Mexico

Conclusion

EV Readiness Index offers vital insights in the race to push EV development
How can countries win the EV race?
EV Readiness Index opens a plethora of new questions for the industry

Methodology

How was the EV Readiness Index constructed?
Indicators and weights used
Countries used in the EV Readiness Index

Mobility

All vehicles captured by Euromonitor's vehicle volume sales data, i.e. light vehicles -passenger cars and light commercial vehicles combined. Medium and heavy-duty trucks and buses are not covered.

See All of Our Definitions
Share:

NEW REPORT GUARANTEE

If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extract FREE! Home Page