Electric vehicle (EV) sales in China reached 11.3 million units in 2024, marking a 39.5% increase from the previous year, according to an analysis by TradingPedia using data from the European Automobile Manufacturers’ Association and the International Energy Agency.
This volume represented nearly half of all new vehicle registrations in the country, reinforcing China’s position at the forefront of the global EV transition.
The US recorded 1.5 million EV sales during the same period, including 1.2 million battery electric vehicles (BEVs) and 320,000 plug-in hybrids (PHEVs).
Germany followed with 572,514 units, while the UK registered 549,148 vehicles.
Scandinavian countries demonstrated particularly high EV penetration rates. In Norway, electric cars made up over 90% of new car registrations. Sweden and Denmark also reported that more than half of new vehicles sold were electric.
Rapid EV adoption is occurring across key Asia-Pacific economies. Indonesia posted a 186% increase in EV sales year-over-year, reaching more than 49,000 units.
India and South Korea are also expanding their electric fleets, contributing to shifts in consumer behaviour and insurance demands.
Insurers in these markets are beginning to roll out tailored coverage options for EV owners. These include policies that address battery degradation, damage during charging, and risks associated with vehicle connectivity.
Companies such as India-based Acko and China Pacific Insurance have introduced policies that incorporate services like battery replacement support and coverage against high-cost components.
Alternative ownership models, such as battery-swapping schemes and leasing programs, are prompting insurers to develop flexible coverage structures that accommodate non-traditional vehicle usage.
In contrast, Europe experienced a slight decline in EV registrations in 2024, with 2.93 million units registered – down 2.18% from the previous year.
However, hybrid vehicles saw strong growth, surpassing 4 million units sold, a 19.6% increase.
Petrol vehicles accounted for approximately 33% of new registrations, followed by hybrids (31.4%), EVs (22.7%), and diesel vehicles (10.4%).
Diesel saw the largest drop, decreasing by nearly 12% year-over-year.
The motor insurance market in Asia-Pacific is projected to grow from US$145.46 billion in 2024 to US$238.66 billion by 2030, according to forecasts published on ResearchAndMarkets.com.
The expansion is driven by higher vehicle ownership rates, evolving regulatory frameworks, and growing consumer demand for financial protection in countries such as China, India, and Japan.
China’s insurance sector remains the largest in the region, supported by its expansive vehicle fleet – estimated at over 330 million in 2023 – and broad regulatory enforcement of compulsory insurance.
Leading insurers such as Ping An, PICC, and China Pacific Insurance are among those responding to the evolving mobility landscape with digital tools and new products.
A separate forecast by GlobalData estimates that motor insurance premiums across Asia-Pacific will grow from US$229.2 billion in 2024 to US$301.7 billion by 2029.
Five markets – China, Japan, Australia, South Korea, and India – are expected to account for the majority of that growth, reflecting their dominant share of regional vehicle fleets.
