Overview of EV Growth in Hong Kong
Hong Kong’s EV market is undergoing a transformative expansion, driven by robust policy support, shifting consumer attitudes, and technological advances. While infrastructure and grid constraints pose challenges, the city’s commitment to electrification and carbon neutrality positions it as a leading market for EV growth in Asia. The next few years will be critical as Hong Kong aims to meet ambitious targets for EV adoption and supporting infrastructure.
Key Growth Metrics:
- The number of EVs in Hong Kong surged from 19,610 in March 2021 to 93,361 by April 2024—a 376% increase in just three years.
- As of April 2025, there are about 119,000 EVs, accounting for approximately 13.1% of all vehicles in the city.
- EVs represented over 60% of first vehicle registrations in 2023, up from just 9% in 2017.
- The share of electric private cars in new registrations soared from 6.3% in 2019 to 64.1% in November 2023.
- By June 2025, EVs made up around 10.5% of Hong Kong’s total vehicle population.
Drivers of EV Adoption
Government Policy and Incentives:
- The Hong Kong government has set a target to cease new registration of fuel-propelled and hybrid private cars by 2035 or earlier, aiming for all new private cars to be electric by then.
- Incentives include the First Registration Tax (FRT) concession for EVs, recently extended until March 2026.
- The “One for One Replacement Scheme” launched in 2018 has been a major catalyst, allowing owners to trade in old vehicles for tax concessions on new EVs.
- The government’s Roadmap on Popularisation of Electric Vehicles guides long-term policy towards zero vehicular emissions before 2050.
Charging Infrastructure:
- Public charging facilities have expanded rapidly, with 11,188 public EV chargers (as of March 2025), including 7,112 medium chargers and 2,028 quick chargers.
- The government aims to increase the number of parking spaces with charging infrastructure to about 200,000 by mid-2027.
- Despite growth, demand for charging infrastructure is projected to outpace supply, creating opportunities for real estate and infrastructure investment.
Market Trends and Consumer Preferences:
- Rising climate awareness, high petrol prices, and lower EV operating costs have boosted demand.
- EVs are increasingly viewed as status symbols and are associated with luxury and innovation, particularly among urban dwellers.
- The market is diversifying, with 426 EV models from 18 economies type-approved for use in Hong Kong as of April 2025.
- Chinese EV brands are gaining market share, rising from 16% to 30% in one year as of June 2024.
Market Outlook
- The EV market in Hong Kong is expected to continue its strong growth, with a projected annual growth rate (CAGR) of 8.3% between 2025 and 2029, reaching a market volume of HKD 2.0 billion by 2029.
- JLL forecasts over 150,000 private EVs by the end of 2027, reflecting an annual growth rate of about 15.1%.
- The government’s push for commercial EV adoption, including e-taxis and e-buses, is set to further accelerate growth, with targets for 3,000 e-taxis and 600 e-buses by 2027.
Challenges and Opportunities
Challenges:
- The rapid increase in EVs is straining the city’s charging infrastructure and grid capacity, especially in high-density residential buildings.
- The need for more charging points and upgrades to building power networks is pressing.
Opportunities:
- The gap in charging infrastructure presents lucrative opportunities for property owners, investors, and charging service providers.
- Cross-industry collaborations and technological innovation, such as portable chargers and fast-charging solutions, are expected to address infrastructure challenges.