Electric Vehicle vs. Gasoline Vehicle Ratio: Hong Kong Market Trend Analysis

With increasing environmental awareness in Hong Kong, the ratio of electric vehicles (EVs) to traditional gasoline vehicles has become a major focus for many drivers. How are they performing in the market? Which type is more popular? This blog post will analyze the current trends in the ratio of EVs to gasoline vehicles in Hong Kong in simple and easy-to-understand language, providing you with practical information to help you make an informed choice!

Current ratio of electric vehicles to gasoline vehicles

According to the latest data from the Transport Department in June 2025, gasoline-powered vehicles still dominate Hong Kong's vehicle registrations, accounting for approximately 70% of the market share, while electric vehicles account for about 20%, with the remainder being hybrid vehicles and other types. Electric vehicle sales have seen significant growth in recent years, with an annual increase of approximately 15%-20%, and are projected to reach over 30% by 2027, reflecting the combined impetus from government policies and market demand

Advantages and challenges of electric vehicles

Electric vehicles are gradually gaining popularity due to their many advantages:

• Advantages：

1. Environmental benefits: Electric vehicles have zero emissions, which aligns with Hong Kong's 2035 carbon neutrality target.

2. Government support: The government provides a first registration tax (FRT) exemption, with private cars eligible for a maximum discount of HK$58,500 (until March 31, 2026); commercial vehicles and motorcycles are fully exempted; the Electric Vehicle Home Charging Subsidy Scheme (EHSS) totaling HK$3.5 billion is extended to the 2027-28 fiscal year (approximately March 31, 2028).

3. Low operating costs: Charging costs are far lower than fuel costs, making it more economical in the long run.

• challenge：

1. Insufficient charging facilities: Although the goal is to increase to 200,000 charging points by 2027, the New Territories and outlying islands still need improvement

2. Battery life: Battery aging can lead to high replacement costs

• Tip: Before purchasing an electric vehicle, check the location of nearby charging stations and plan your charging time to avoid inconvenience.
  
  
  

Advantages and challenges of gasoline-powered vehicles

Gasoline-powered vehicles remain attractive due to their mature technology:

• Advantages：

1. Convenient refueling: Gas stations are located throughout Hong Kong, making it quick and easy to replenish energy

2. Mature maintenance: Extensive parts and service network makes maintenance relatively easy

3. Long driving range: 500-600 kilometers on a single refueling, suitable for long-distance travel

• challenge：

1. High fuel costs: Fluctuations in oil prices increase expenses related to vehicle use

2. Environmental pressures: The policy of banning the sale of new gasoline vehicles by 2035 will restrict its development

• Tip: If you frequently drive long distances, a gasoline car may be more suitable, but be aware that future emissions taxes may affect costs.

Factors behind the proportion

• Policy impetus: The government plans to ban the sale of new petrol cars by 2035, and subsidies and tax incentives for electric vehicles (such as FRT exemption until March 31, 2026 and EHSS until the 2027-28 fiscal year) will accelerate the transition.

• Consumer preferences: Young drivers favor the technological feel and low maintenance costs of electric vehicles; traditional users rely on the reliability and refueling convenience of gasoline vehicles.

• Infrastructure development: The number of charging stations will increase from 1,200 in 2020 to approximately 6,100 in 2025, with a target of 200,000 by 2027, although the distribution still needs to be optimized.

• Tip: Stay informed about government policy updates and switch to electric vehicles as soon as possible to enjoy subsidies.

The impact of the ratio of electric vehicles to gasoline vehicles on insurance

The rising proportion of electric vehicles is also impacting the insurance market. Their batteries are more valuable, and insurance premiums are typically 10%-20% higher than for gasoline vehicles. However, government subsidies (such as the FRT exemption until March 31, 2026) can offset some of these costs. Gasoline vehicle premiums may gradually increase due to rising emissions taxes and maintenance costs. Before buying a car or renewing your insurance, you should compare quotes from multiple insurance companies. It is recommended to contact AWM's auto insurance experts immediately for professional advice

Summary

In Hong Kong, gasoline-powered vehicles currently account for about 70% of the market, but electric vehicles are rapidly rising to 20%, and the gap is expected to narrow in the future. Electric vehicles are gaining popularity due to theirenvironmental benefits,government support(FRT exemption until March 31, 2026, EHSS until the 2027-28 fiscal year), andlow operating costs; however, charging infrastructure remains a challenge. Gasoline-powered vehicles, on the other hand, continue to attract traditional users due to their convenience. Regardless of the type of vehicle chosen, it is recommended to understand your own needs and check the available infrastructure.

Source: Transport Department, GovHK