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TRENDS

IN

THEGLOBAL

VEHICLEFLEET

2023MANAGING

THESUVSHIFTANDTHEEVTRANSITIONTRENDS

IN

THEGLOBAL

VEHICLEFLEET

2023MANAGING

THESUVSHIFTANDTHEEVTRANSITIONACKNOWLEDGMENTSTheprojectwasdevelopedattheEuropeanTransport

andEnergyResearchCentreoftheInstituteofTransportationStudies,UniversityofCalifornia,Davis,andmanagedbyPierpaoloCazzola.ThisreportwasauthoredbyPierpaoloCazzola,LeonardoPaoli,andJacobTeter.

Allauthorscontributedtothedevelopmentofthedataprocessingmethodology,buildingonearlierexperiences,inparticularwithpreviousGFEIbenchmarkingreports.LeonardoPaoliledonupdatingthedataandmakingthempubliclyavailable.SheilaWatson

(FIAFoundation)providedfeedbackonthedraftreportandJohnPap

(FIAFoundation)managedtheeditorialprocess.Theauthorswouldliketothankpeerreviewerswhoprovidedessentialfeedbacktoimprovethequalityofthereport.They

includeElizabethConnelly(IEA[InternationalEnergyAgency]);MatteoCraglia(InternationalTransportForum);FrancoisCuenot(UnitedNationsEconomicCommissionforEurope);EduardoEspitiaEcheverria(WorldBank);Lew

Fulton(UniversityofCalifornia,Davis);MathildeHuismans(IEA);AlexK?rner(UnitedNationalEnvironmentProgramme);AdityaRamji(UniversityofCalifornia,Davis),MaríaSantosAlfageme(InstitutoSuperiorTécnico,

Lisbon);JulesSery(IEA);andJacopoTattini

(JointResearchCenter,

EuropeanCommission).TheprojectwasfundedbytheFIAFoundation.DesignbyDianaFauner

andJohnRigby.PhotographybyAlamy,GettyImages,iStockandShutterstock.DOI:10.7922/G2HM56SVDatasetonZenodo.DOI:10.5281/zenodo.10148349November2023CONTENTSExecutive

Summary14.3

Vehicle

taxation4.3.1

Country-level

taxation

frameworks4545454647481Introduction54.3.2

Key

examples

of

country-wide

di?erentiated

vehicle

registration

taxes4.3.3

Vehicle

taxation

related

to

international

trade4.3.4

Local

vehicle

taxes

and

charges2

Key

developments

in

light-duty

vehicle

markets2.1

New

sales

of

passenger

cars

and

light

commercial

vehicles2.2

Energy

e?ciency

of

new

vehicles66811131315194.4

Changes

in

vehicle

taxes

to

address

vehicle

weight

increases

and

equity-relatedchallenges2.2.1

Technical

determinants

of

the

energy

e?ciency

of

vehicles2.2.2

Tailpipe

carbon

emissions

of

new

light-duty

vehicles2.3

Vehicle

sales

by

powertrain2.4

Vehicle

sales

by

segment2.5

Vehicle

size

and

weight4.4.1

Changes

in

country-level

taxation

frameworks4.4.2

Changes

in

vehicle

taxation

related

with

international

trade4.4.3

Changes

in

local

vehicle

taxes

and

charges484950505152544.5

Fuel

taxation

and

carbon

prices4.5.1

Road

user

charges

to

complement

or

progressively

replace

fuel

taxation4.6

Alternative

energy

infrastructure

(EV

chargers)4.7

Sustainable

?nance

and

development

aid

funding3

Analysis

of

the

vehicle

market

developments

and

implications

for

policy

action2121212123232526262730313.1

Impacts

of

the

shift

towards

SUVs3.1.1Energy

and

CO

emissionsAnnex:

Methodological

note55555555555757575757595923.1.2

Vehicle

weight3.1.3

Road

safety3.1.4

EquityA.1

Description

of

data

sourcesA.1.1Fuel

economy

in

major

car

markets

(2005-2017)

data,

GFEI_0517A.1.2

GFEI

2021

data,

IEA_193.2

The

role

of

EVsin

the

shift

towards

SUVs3.3

Impacts

of

the

EV

transitionA.1.3

Automotive

sales

data

from

MarklinesA.1.4

CO

emissions

from

cars

and

vans,

EEA,

EEA23.3.1Energy

and

CO

emissionsA.2

Description

of

data

processing

steps23.3.2

Vehicle

weightA.2.1

Preparing

Marklines

sales

data3.3.3

Road

safety3.3.4

EquityA.2.2

Preparing

IEA

speci?c

energy

consumption

dataA.2.3

Preparing

EEA

dataA.2.4

Matching

of

powertrain

categories

with

Marklines

categoriesA.2.5

Joining

speci?c

energy

consumption,

weight,

and

footprint

data

to

salesdata3.4

Are

SUVs

and

EVsincreasing

the

risk

of

a

global

divide?3.5

Need

for

policy

action

to

address

existing

challenges31324

Policy

options3537373940404040A.2.6

Improvements

in

ICE

vehicle

e?ciency

technologiesA.2.7

Mismatch

between

vehicle

factory

shipments

and

registrations

in

ChinaA.3

Applying

new

W

LTC

correctionsA.3.1

Re-benchmarking

NEDC

to

W

LTC

conversion

factorsA.4

Regional

aggregations595960614.1

Regulatory

policy

frameworks

on

energy,

environment

and

safety4.1.1Environmental

regulations4.1.2

Road

safety

regulations4.1.3

Use

of

regulations

in

vehicle

trade4.1.4

Urban

access

restrictions614.1.5

Targeted

regulatory

requirements

for

speci?c

usage

pro?les4.2

Regulatory

changes

to

address

vehicle

weight

increases

and

equity-relatedchallengesAbbreviations

and

acronymsUnits

of

measure66664.2.1

Regulations

on

vehicle

footprint4.2.2

Regulations

on

battery

capacity4.2.3

Other

regulatory

requirements

applying

speci?cally

to

batteries4.2.4

Changes

in

existing

environmental

regulations4.2.5

Changes

in

existing

road

safety

regulations4.2.6

Changes

in

targeted

regulatory

requirements

for

speci?c

usage

pro?les414141424444ReferencesEndnotes6777TRENDS

IN

THE

GLOBAL

VEHICLE

FLEET

2023

-

MANAGING

THE

SUV

SHIFT

AND

THE

EV

TRANSITIONEXECUTIVESUMMARY2022.

The

yearly

rate

ofenergy

e?ciencyimprovementbetween

2019

and2022

was

more

pronounced

(closeto

6%)inmarkets

where

EVsalesincreased

themost,namelyChina

andEurope.

InNorth

America,loweruptake

ofEVs

anda

continued

trend

insalesoflarger

andheavier

vehicleshas

resulted

in

a

yearly

improvement

rateof1.6%.

Incountries

where

EVs

are

notwidelydeployed,annualimprovement

rates

are

alsocloseto

1.5%.SportUtility

Vehicles

(SUVs),

underpinningincreases

inlarger,

heavier,

and

more

powerful

vehicles,has

continuedinmajorautomotive

markets

andacross

nearlyallcountries

(Figure

ES3).In2022,

salesofSUVs

overtooksalesofconventional

cars

ata

globallevel,

reaching51%

ofthetotal.

Globally,

theaverage

vehicle

weight

ofLDVs

hasalsoreached

anall-timemaximum,at1530kg.Average

footprint

hasstagnatedafter

2019/2020

atabout4.2

m2.

Increases

took

place

inlow-

andmedium-income

countries,

typicallystarting

from

a

lower

baseline.Limited

declinesoccurred

mainlyinChina

andEurope.This

is

the

latestupdateof

a

benchmarkingreportlookingatthespeci?cfuelconsumption

oflight-duty

vehicles(LDVs).

Whilereporting

datastarting

in2005,itfocusesonchanges

thatoccurred

between

2019

and2022.decreasedinallmajorcarmarketsfrom2019to2022,improvingatanaverageyearlyrateof3.2%andreaching6.9

Lge/100kmin2022(0.64kWh/km).Thisisadoublingoftheaverageimprovementrateobservedbetween2005and2019(1.6%)(FigureThe

e?ciencyofnew

vehicles

isalsolinked

withthesize,weight,

andpower

ofnew

cars.

A

long-term

shift

towardsKey

developmentsincludea15%contractionofglobalLDV

salesin2020asaconsequenceofthepandemic,andalimitedrecoveryinsalesthrough2022.Thesales-weightedspeci?cenergyconsumptionofLDVsES1).DirectCO

emissionshavedeclinedevenfaster,2atarateof2.1%

peryearbetween2005and2022,aselectri?cationa?ectscarbonemissionsmorethanenergyconsumption.FIGURE

ES2:

GlobalLDVsalessharesby

powertrain100%FIGURE

ES1:

Trends

inthespeci?cenergyconsumptionofnewlightdutyvehiclesinmajormarkets75%50%25%0%12111091.1290270250230210190170150130110/0.90.70.60.4OCkeggL2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022Battery

Electric

Plug-in

Hybrid

Hybrid

Mild

Hybrid

ICE

Petrol

ICE

Diesel

ICE

Other87Note:

ICEstandsforinternalcombustionengine.65Sources:

thisassessment(detailsintheAnnex)basedonIEA,2019a;IEA,2021a;EEA,2023a;EEA,2023b

andMarklinesdata.4ChinaNorth

AmericaEuropeJapanOther

CountriesWorldFIGURE

ES3:

GlobalLDVsalesby

segmentNotes:

Lgestandsforlitresofgasolineequivalent,anditisusedtostandardisefuelconsumptionaccordingtotheirvolumetricenergycontent,likekWh/km.Thereare9.3

kWhperLge.Historicalspeci?cenergyconsumptionvalueshavebeenbenchmarkedaccordingtonew100%understandingoftheratiobetweenNEDCandWLTP

testcycleenergyintensityandCO

emissionsperformance.Thisrevisionhasimprovedthe2real-worldrepresentativenessofthereportedspeci?cenergyconsumption.75%50%25%0%Sources:

thisassessment(detailsintheAnnex)basedonIEA,2019a;IEA,2021a;

EEA,2023a;EEA,2023bandMarklinesdata.The

globalaverage

annualrate

ofenergy

intensityreductions

intheperiodfrom

2020

to

2022was

4.2%.

Ifthisrate

ofimprovement

could

besustainedthrough

2030,

itwould

bringLDVs

verycloseto

meetingtheGFEItarget

ofdoublingtheenergy

efficiencyofnew

LDV

salesby

2030

from

a2005baseline.The

rapid

acceleration

inenergy

e?ciencyseeninrecentyears

ismainlydueto

theuptake

ofelectriclight-dutyvehicles

(EVs,

whichincludebothbattery

electricvehicles[BEVs]

andplug-inhybrids

[PHEVs])

(Figure

ES2).Electricpowertrains

consume

three

to

sixtimeslessenergy

thaninternal

combustion

enginevehicles

to

covera

unitofdistance

andtheirsalesshare

reached

15%in2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022Large

SUVLarge

CarSmall

SUVLCVSmall

CarMedium

CarShare

SUVUnclassi?edSources:

thisassessment(detailsintheAnnex)basedonIEA,2019a;IEA,2021a;EEA,2023a;EEA,2023bandMarklinesdata.1TRENDS

IN

THE

GLOBAL

VEHICLE

FLEET

2023

-

MANAGING

THE

SUV

SHIFT

AND

THE

EV

TRANSITION2POLICYOPTIONSManaging

thesedevelopmentsrequires

a

broad

rangeofpolicyactions.The

two

maintrends

underpinningdevelopments

intheglobalcarmarket

a

market

shifttowards

SUVsandthetransition

toward

EVs

have

far-reachingimplicationsfor

theautomotive

industry,

aswell

asontheenvironment

andsociety.Shiftsto

larger

andheavier

vehicles

ledto

increased?The

adoptionandcontinued

development

offundamentalpre-requisites:

technical

standards,increased

low-carbon

electricity

availability,

andremoval

offossil

fuelsubsidies.oilconsumption,

direct

CO

emissions

andvehicle2weight,

size

andpower.

Without

theshifttowardsSUVs,

energy

useperkmfor

combustion

enginevehicles

could

have

fallen

atanaverage

annualratethatis30%higherthanitdidfrom

2010

to

2022.Intheabsence

oftheSUVshift,vehicle

weightincreases

for

thesesamevehicles

could

alsohavebeenmore

thanhalved.?A

coherent

policyframework

isalsoneededbeyond

tailpipeemissions,

takinga

holisticapproach

to

address

impactsofLDV

productionandoperations

from

a

lifecycle

perspective.ImpactsoftheSUVshift

onenergy

useanddirectNovel

regulatory

mechanismscanaddress

issuesrelated

to

increased

vehicle

size

andweight.emissions

ofCO

perkmare

beingo?set

by

increased2electri?cation,thanks

to

markedly

lower

speci?cenergyconsumption

versus

combustion

vehicles.?The

introduction

ofa

caponvehicle

footprint,

inabsolute

terms

andasa

sales-weighted

average,paired

withnetdeclinesgoing

forward,

to

limitandthenreverse

theSUVshift.Electricvehicles

however

tend

to

weigh

more

thancombustion

vehicles,

andtheirrisehasaddedto

theweight

increases

coming

from

theshiftfrom

smallandmediumcars

to

SUVs.?Corporate-average

regulatory

requirements,similarto

thoseinplace

for

fueleconomy

orDespite

increases

indisposableincome

ofhouseholdsworldwide,

theSUVshiftwasCO

emissions,

having

battery

capacity

(kWh/2vehicle)

astheregulated

parameter.

Thesecould

beespeciallye?ective

to

complementthefootprint

regulations

to

reverse

theSUVshift,addressing

criticalmineral

issues

fromthedemandsideandequity

issues

speci?callyrelated

withEVs

through

product

diversi?cation,whileleaving

room

for

innovation

inbatterychemistriesandproviding

?exibility

ininstrumentalfor

anincrease

inoriginalequipmentmanufacturers

(OEM)

pro?tability

thatremainedinplace

even

after

thecontraction

observed

intheglobalLDV

market.

This,

however,

alsoresulted

inrelevant

a?ordability

andequity

challenges

withinandacross

countries.

Higherinvestment

costsneededfor

EVs

exacerbated

thesechallenges,

evenifsavings

from

lower

energy

andmaintenance

costsfor

EVs

helpto

mitigate

thise?ect

ona

total

cost

ofownership

basis.Adapting

existing

policyandregulatory

instrumentscanalsohelpaddress

theseissues.??Sustainable?nanceframeworks,importanttohelpachieveabetteralignmentbetweenthedecisionstakenbyinvestors,corporationsandotherentities,canbene?tfromupdatesintheirtaxonomiesregardingweight-relatedattributesofvehicles.???Vehicle

taxation

reforms

includingtheintegration

ofweight

andprices

asmodulatingparameters

for

vehicles

taxes

andcharges,atthenationalandatthelocallevels

canhelpsteer

vehicle

markets

away

from

SUVsandencourage

EVadoptionwithoutreducinggovernment

budgets.compliance

strategies

for

automakers.?The

useofvehicle

footprint,

rather

thanweight,isalsosuggested

asthebestchoice

asamodulatingparameter

inexisting

regulationsonspeci?cenergy

consumption

ordirect

CO2emissions,

alongsidetightenedrequirementsfor

larger

vehicles

(includingbothICEVs

andEVs).

This

isbecauseregulating

basedonfootprint

canincentivize

lightweighting

asanenergy

consumption

reduction

strategy,

whereasweight-based

regulations

fail

to

dothis.Financial

instrumentsdesignedto

facilitateaccess

to

EVs

for

capital-constrained

householdsandsmallbusinesses,

aswell

asinitiativesfavouring

access

to

capitalatlower

cost,

arecrucialto

helpfavouring

anequitabletransition,domesticallyandinternationally.Legacy

OEMshave

beenslow

to

enter

theEVmarket,especiallyinsmallersegments,despite

theriskofexposure

to

long-term

losses

ofmarket

shares

toChinesecompetitors.

Reasons

includethenear-termfocus

onhigherpro?tability,

thecost

ofthebatteriesfor

BEVs

andcomplex

powertrains

for

PHEVs,challenges

inthedevelopment

ofnew

battery

supplychainsandlarge

capitaloutlays

for

investment

innewindustrialfacilities.Fossilfueltaxesandcarbonpricingmechanismso?erimportantopportunitiestoprovideeconomicincentivesforEVs.

Incentivesneedtobetargetedonmorevulnerablehouseholdsandbusinesses,facilitatingamoreequitableandinclusivetransition.They

canbe?nancedfromrevenuesfromfossilfueltaxesandcarbonpricing.Whileitisalsotechnicallyfeasible

to

make

progressby

reforming

trade

rulesandtari?s

appliedto

criticalminerals,

EVbattery,

andvehicles,

progress

onthisdependsuponthee?ectiveness

ofthedialogueandnegotiations

takingplace

attheintergovernmentallevel.

Possible

improvements

to

trade-related

policiesonvehicles

includedi?erentiated

tari?s

basedonpowertrain,

battery

size,

energy

e?ciency,

GHGemissions,vehicle

weightand

footprint.

They

are

feasibleaslongasthedi?erentiation

alignswithrulesoforigin,environment-

andnationalsecurity-related

exceptionsforeseen

by

theWorld

Trade

Organization

(WTO).Thisreportproposesalsototargetmorestringentenvironmentalandsafetyregulationsonhighlyutilizedvehiclessuchascompanycars,taxis,government?eets,andride-andcarsharingservices.MeasuresrequiringhigherEVmarketsharesandincentivizingelectricvkmintheseusecasescanenhancee?ciencyintheuseofmineralsforEVbatteriesandmayalsogeneratepositivespilloversintermsofequity.Equity-related

challenges

andgreater

exposureoflow-income

householdsandbusinesses

to

thecombined

market

transformation

towards

EVs

andSUVs

pointtowards

thepossibility

ofa

growingglobaldivide,notonlywithindi?erent

income

groupswithincountries,

butalsobetween

majordevelopedeconomies

andothercountries.Regulatory

and?scalmeasures

supportinguniversal

access

to

EVcharging

infrastructureare

neededto

enableconsumers

to

gain

morecon?dence

to

undertake

a

larger

share

oftheirtripseven

witha

shorterrange,

thereby

alsoaddressing

weight-related

challenges

for

EVs.3TRENDS

IN

THE

GLOBAL

VEHICLE

FLEET

2023

-

MANAGING

THE

SUV

SHIFT

AND

THE

EV

TRANSITION41

INTRODUCTION2

KEYDEVELOPMENTSINLIGHTDUTY

VEHICLEMARKETSThisreportisthelatestupdateandsixthinstalmentoftheGlobalFuel

EconomyInitiative’sbiannualbenchmarkingreportonlight-dutyvehiclesales,extendingtheanalysisfrom2019through2022.Previousreportstrackedthetechnical,market,andChina,

Europe,

Korea,

JapanandNorth

America,1resulting

insubstantialenergy

intensity

andGHGemission

reductions.Chapter3analyseskey

determinantsoftheobservedmarketdevelopments,withaspeci?cfocusontheshifttowardsSUVs

andtheincreaseinEVshares.Itexaminesthebroaderimpactsofthesedynamics,focusingonvehiclesize,weight,andpriceincreases,andconsidersaspectsrelatedwithenergy,emissionspolicydriversoffueleconomyandCO

emissions2performanceofnewlight-dutyvehicles(LDVs)

atacountry,regional,andgloballevel(CuenotandFulton,2011,CuenotandK?rner,

2013,IEA,2019a,andIEA,2021a).Thesereports,togetherwithotherGFEIanalyses(Cuenot,2017),havedocumentedtherisingmarketsharesofSportUtilityVehicles

(SUVs),andmoregenerally,oflargerandheaviervehicles,andanalysedtheimpactofthesetrendsonenergy2.1

NEWSALESOFWorldwide,

thesalesoflight-duty

vehicles

(LDVs)ofCO

andlocalairpollutants,roadsafety,

demandfor–

includingpassenger

cars

andlightcommercialvehicles2

steadily

increased

through

2017,

andthen2mineralsresources,andequity.PASSENGERCARS

ANDslowed

down

through

2019

(Figure

1).Long

term-Thefollowinganalysis,inChapter4,reviewspoliciesalreadydevelopedbygovernmentstoaddresstheimpactsofrecentmarketdevelopments,identi?esbestpractices,andrecommendschangesandnewregulatoryinstrumentsthatarebestsuitedtoaddressthechallengesdiscussedinChapter3,placingagreateremphasisonsolutionsthathelpbridgetheriskofaglobaldivide.trends

were

disrupted

by

theCovid-19

pandemicinLIGHTCOMMERCIALVEHICLESe?ciencyandCO

emissionsinmajorLDV

markets.2020,

whichresulted

ina

rapid

drop

ofsalesacross2allregions:

globally,

15%fewer

LDVs

were

soldin2020

thanin2019.

Following

2020,

salesrebounded,Thisreporttracksthiscontinuingtrend,highlightingkey

implications,includingreducedenergyandresourcee?ciency,increasedvehicleproductioncostsandreduceda?ordabilityforvehicleowners–exacerbatinginequalitieswithinandamongcountries–aswellasheightenedinjuryandmortalityriskstopedestrians,cyclists,andcardriversalike.Examiningvehiclesalestrendsinlow-andmedium-incomecountries,thisworkalsoextendsthemesdevelopedintheUCDavisreportcommissionedbytheFIAFoundationfortheZEVTransition

Council,“FacilitatingaTransition

toZero-EmissionVehicles

intheGlobalSouth”(CazzolaandSantosAlfageme,2023).butare

stillaround

10%lower

thanthey

were

beforethepandemic.Themethodologicalapproachofthisupdatedi?ersfrompreviousGFEIbenchmarkingreports.Ratherthanrelyingonadatabasewithdetailedmodel-levelandinsomecasestrim-leveldataandincludinganextensivelistofvehicletechnicalparameters(e.g.,weight,footprint,enginecapacity,numberofdoors,presenceofe?ciencytechnologiessuchascontinuouslyvariabletransmissions,turbochargers,etc.),thisdataupdatereliesonlowerresolutiondata(stillatthemodellevel)fromMarklines.TheMethodologicalAnnexoutlinesthemethodsusedtoensureascloseaspossibleconsistencywithpreviousreports,andtoverifytheaccuracyandvalidityofthisassessment.FIGURE

1:

GlobalLDVsalesby

region2005-202210090807060504030Chapter

2

illustrates

thatthetendency

towardslarger

market

shares

for

vehicles

inlarger

heaviervehicle

segmentsispersistent

andwidespread.The

sameanalysis

alsoshows

a

rapid

increase

invehicle

electrification,withstrong

EVadoptionin201002005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022ChinaNorth

AmericaIndiaEuropeJapan

and

KoreaBrazil,

Mexico,

MalaysiaIndonesia,

Thailand,

Vietnam,

South

AfricaOther

CountriesMiddle

EastNote:

LDVsalesincludedinthisanalysisandinthisgrapharethoseforthecountrieslistedinannexTable

A6.EuropeincludesallmembercountriesoftheEuropeanEconomicArea(EEA)plusSwitzerlandandtheUnitedKingdom.NorthAmericaincludestheUnitedStatesandCanadabutexcludesMexico,includedinthesamegroupasBrazilandMalaysia,astheyhavesimilarcharacteristicswithrespecttoGDPpercapita,whilestillhavingacomparablepopulationdensity,thepresenceofanautomotivemanufacturingcapacityandnotbeinganetimporterofoilandpetroleumproducts.Total

salesforthissetofcountriesareequivalenttoroughly85%ofthetotalvehiclesalesaccountedby

OICA–includingcommercialvehicles(OICA,2023),meaningthattheyrepresentthevastmajorityoflightdutyvehiclesalesglobally.Sources:

thisassessment(detailsintheAnnex)basedonIEA,2019a;IEA,2021a;EEA,2023a;EEA,2023bandMarklinesdata.5TRENDS

IN

THE

GLOBAL

VEHICLE

FLEET

2023

-

MANAGING

THE

SUV

SHIFT

AND

THE

EV

TRANSITION62.2

ENERGYThe

rebound

insaleshasbeenslowed

down

byastretched

supplychain–

especiallydueto

a

shortageofmicrochips

thathasstruggledto

keep

upwithswingsindemand(JP

Morgan,

2023;

Brinley,

2023,

Straughan,2023;

Burkacky

etal.,2021;

Burkacky

etal.,2022).Shifts

inthemarket

structure,

asdiscussed

below,accompanied

by

changes

invehicle

prices

aslargervehicles

are

above

thoseofsmallerones,discussedinChapter

3,are

alsoin?uencingconsumer

choicesregarding

theacquisitionofa

new

vehicle,

includingthrough

postponement

of

purchases(GfK,

2023;Shmuel,2022;

Romei,

2022)

oranincreased

consideration

ofsecond-hand

options,where

they

are

available

(RochBaranowski

etal.,2023;

Manheim,2023).combinedshareofthesematuremarketsoutoftheglobalmarkethasdeclinedfromover70%

in2005tounder50%in2022.andPHEVs,

re?ecting

thefact

thatelectricpowertrainsconsume

three

to

sixtimesless

energy

to

covera

unitofdistance

incomparison

withpowertrains

reliant

oninternal

combustion

engines(ICEs)

andtheirsalessharereached

15%in2022.EFFICIENCY

OFNEWVEHICLESLDV

salesinNorthAmericadeclined14%in2020fromtheir2019level,andhavedroppedafurther5%sincethen,to13.9millionvehiclesin2022.Globalsupplychainconstraintsandrapidin?ation,withthepricesofnewcarsandtrucksrisingevenhigherthanotherconsumergoods(BureauofLaborStatistics,2023),justifythisreduction.5The

yearly

rate

ofenergy

e?ciencyimprovementbetween

2019

and2022

was

more

pronounced

inmarkets

where

EVsalesincreased

themost,namelyChina

(5.9%)

andEurope

(5.8%).InNorth

America,lower

uptake

ofEVs

anda

continued

trend

insalesoflarger

andheavier

vehicles

hasresulted

ina

yearlyimprovement

rate

of1.6%.

Incountries

where

EVs

arenotwidelydeployed,

annualimprovement

rates

arecloseto

1.5%.The

speci?cenergy

consumption

ofnew

vehicles

hasdecreased

since

thebeginningofthisbenchmarkingexercise.

The

globalsales-weighted

average

fuelInJapan,salesofLDVs

declinedby

more

than10%since

thepandemicandremained

roughly

constantthereafter.consumption

for

LDVs

soldin2022

was

6.9

Lge/100km(0.64

kWh/km)6,

nearly30%less

energy

thanthevaluein2005.In2020,

GFEIpartnersrea?rmed

theirtarget

todoubletheenergy

e?ciencyofnew

LDV

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