Electric Vehicle Basics

Overview

Electric vehicles (EVs) play a key role in sustainable transport and come in various forms, including passenger cars, trucks, buses, two- and three-wheelers, and micromobility. For the purposes of this definition, EVs are vehicles that require an electric plug to charge their batteries, excluding hybrid electric vehicles (HEVs) and fuel cell electric vehicles (FCEVs). Compared to traditional internal combustion engine vehicles, EVs offer substantial environmental benefits, such as reduced emissions and improved efficiency. However, they also face several challenges to widespread adoption, which will be discussed throughout the Technical Themes in this toolkit.

Figure 1. EV Technology Types (Building Blocks of Electric Vehicle Deployment: A Guide for Developing Countries).

Table 1:Benefits and Barriers to EV Deployment (Building Blocks of Electric Vehicle Deployment: A Guide for Developing Countries).

Benefits of EVs	Barriers to EV Deployment
~4 times more efficient per unit of input energy Reduced or displaced air emissions Better low-end torque for acceleration, heavy loads, and hill climbs Lower fuel and maintenance costs Quiet operation	Higher up-front costs (before incentives) Reduced range and charging convenience Range sensitivity to temperature and duty cycle Reduced vehicle variety Consumers unfamiliar with technology

Electric car sales are on the rise and are projected to reach around 17 million in 2024, making up more than one in five cars sold worldwide. This growth builds on a record year: in 2023, global sales of electric cars approached 14 million, representing 18% of all cars sold. Despite this progress, the pace of electric car sales in emerging and developing economies outside China will be crucial to their global success. In 2023, the majority of electric car sales were concentrated in China (60%), Europe (25%), and the United States (10%), which together accounted for about 65% of total car sales worldwide.

While electric car sales in emerging economies have lagged behind these major markets, growth is picking up. For instance, in 2023, Vietnam saw around 15% of all cars sold as electric, and Thailand reached 10%. Although the market share remains relatively low in large car markets like India (2%) and Brazil (3%), several factors are driving future growth. Policy measures such as purchase subsidies and incentives for EV and battery manufacturing are playing a key role. In India, the Production Linked Incentives (PLI) Scheme supports domestic manufacturing. In Brazil, Indonesia, Malaysia, and Thailand, the availability of cheaper models, mainly from Chinese brands, is boosting uptake. In Mexico, rapid development of EV supply chains is being stimulated by subsidies from the US Inflation Reduction Act (IRA).

Overall, while EVs are making significant strides in various markets, addressing the barriers to deployment in developing countries and supporting policies will be vital to accelerating their adoption and maximizing their environmental benefits.

Key Actions for Increasing EV Deployment

Address Upfront Costs and Incentives: While EVs offer long-term savings, their initial purchase price is often higher than that of internal combustion engine (ICE) vehicles. Implementing incentives and subsidies can help reduce these upfront costs and make EVs more competitive in the market.
Expand Vehicle Options: The current EV market may not offer the variety of vehicle types that consumers are used to from their ICE counterparts. Expanding the range of available EV options to meet the diverse needs of the vehicle users that live in diverse geographic regions of the world can help meet consumer needs and preferences, thereby encouraging broader adoption.
Increase Consumer Awareness: Building consumer familiarity with EVs through education and outreach can help overcome resistance to adoption. Highlighting the benefits of EVs and providing hands-on experiences can enhance consumer confidence. Additionally, developing a skilled workforce for maintenance and repairs will be crucial for a successful transition to EVs.
Improve Charging Infrastructure: Improve the convenience of charging by strategically expanding public charging infrastructure. Consider both the convenience of home charging and the reliability and cost effectiveness of public charging options. Additionally, increase consumer awareness of optimized charging methodologies that lead to the longest battery lifetime.
Adapt to Regional Variations: Recognize that EV range and charging needs can vary based on geographic and climatic conditions. Tailor EV deployment strategies and EV battery circularity planning to address these regional variations and ensure that infrastructure supports diverse environmental conditions.

Building on these foundational actions, the USAID-NREL Partnership supported Mexico City to tackle the challenges of motorcycle electrification by closely collaborating with local stakeholders to evaluate its benefits and address barriers. Through focus groups and technical analysis, key opportunities were identified, including significant improvements in air quality and mobility access. The project emphasized the electrification of commercial motorcycles, such as mototaxis and delivery vehicles, due to their high emissions and vital role in urban transport. To address these challenges, the initiative highlighted the need for supportive policies and infrastructure, underscoring that electrifying high-use vehicles like mototaxis could lead to substantial emissions reductions with relatively minimal investment. This project demonstrates how addressing EV deployment challenges with tailored, localized solutions can lead to significant improvements in air quality and mobility.

Read more about USAID-NREL Partnership projects here and explore how we are driving innovative solutions in clean energy and sustainable transport.

Resources

Trends in the Global Vehicle Fleet 2023: Managing the SUV Shift and the EV Transition

Global Fuel Economy Initiative, 2023

This report indicates that, despite a 15% drop in global light-duty vehicle (LDV) sales due to the pandemic, energy consumption improved significantly between 2019 and 2022, largely due to increased EV adoption, while ongoing challenges like rising vehicle size and weight, especially with the shift towards SUVs, continue to affect overall efficiency and equity.

Fundamentals of Electric Vehicles (EVs)

U.S. Agency for International Development (USAID) and National Renewable Energy Laboratory (NREL) Partnership, 2022

This slide deck was developed for and presented at an Energy Fundamentals Course hosted by the Bangladesh University of Engineering and Technology (BUET). While some content is tailored to Bangladesh, it serves as a general primer on EVs that can be utilized globally.

Building Blocks of Electric Vehicle Deployment: A Guide for Developing Countries

USAID-NREL Partnership, 2021

This report lays out a framework for policymakers, regulators, and other decision-makers in developing countries for how to plan, implement, and scale EV deployment in their jurisdictions. The “building blocks” of EV deployment address technical, institutional, or economic topics that together underpin a safe, sustainable, and efficient transition to an electrified transport sector.

Electric-Drive Vehicles

U.S. Department of Energy (DOE), 2017

This fact sheet provides a high-level overview of three categories of EVs: hybrid EVs (HEVs), plug-in hybrid EVs (PHEVs), and all-electric vehicles.

If you are interested in collaborating or learning more about the USAID-NREL Partnership's international sustainable transport and electric mobility initiatives, please contact us to learn more about partnership opportunities.