A model of Volkswagen ID.5 GTX is pictured in front of solar modules, near the production plant for electric car models of the Volkswagen Group, in Zwickau, Germany, April 26, 2022. REUTERS/Matthias Rietschel

LITTLETON, Colo., Oct 5 (Reuters) - In terms of pure purchasing heft, China's dominance in the electric vehicle (EV) market is unmatched: The country bought one out of every two EVs sold in 2021, and will remain by far the top single country for EV sales for decades more.

But in terms of other key EV market metrics, including share of total car sales, share of existing car inventories, and sales per million people, Europe has stolen a significant lead, and merits close attention by those seeking a full understanding of electric vehicle industry dynamics.

China has rightly hogged the EV limelight over the past decade as Beijing charted bold decarbonization and energy efficiency drives and the country's automakers made aggressive grabs for dominance in electric car production.

Simultaneous build-outs of key segments of the EV supply chain - including critical battery manufacturing capacity - further cemented China's status as the most critical cog in the global EV machine, particularly on the supply side.

But in terms of EV demand growth relative to total auto demand, Europe has established its own areas of dominance, especially in the Nordic countries where EVs accounted for more than half of all cars sold in 2021, according to International Energy Agency (IEA) data.

High income levels among a climate-conscious populace, strong government support for electric vehicle purchases, and extensive public-private build-out of key EV charging infrastructure have been key supportive factors behind Europe's adoption of EVs.

Europe's EV demand is expected to accelerate in the coming years as the region grapples with an energy crisis following Russia's invasion of Ukraine, which has sent power prices soaring and fomented widespread support for accelerating the energy transition away from fossil fuels.

An additional supportive element for EVs in Europe is the rapidly rising share of electric cars in the total pool of cars available to consumers there.

Nine of the top 10 countries ranked by the share of EVs in the total car stock are in Europe, seven of which had an EV share of 3 percent or more, IEA data shows.

The density of EV sales per population has been a key driver of this swell in EV stock.

While China is by far the largest EV-selling country, Norway, Germany, the Netherlands and the United Kingdom all had higher EV sales per million people in 2021.

That means that even budget-conscious potential car purchasers have a growing number of used as well as new EVs to chose from when they come to buy their next car.

The rapid roll-out of charging infrastructure is an additional supportive factor for EVs in Europe.

From 2016 to 2021, the number of public EV charging stations increased by 431% across Europe to more than 356,000, according to the IEA.

While that growth rate lags that of China (716%) and South Korea (5,197%) since 2016, the recent extensive commitments by European governments to fast-track the further rollout of EV-related infrastructure means steep increases in charging station availability is guaranteed in the coming years.

Even those who still have range anxiety in Europe have a larger proportion of plug-in hybrid (PHEV) vehicles to choose from compared to many of their peers in other regions.

More than 40% of the total EV stock in Germany, the United Kingdom and Norway are PHEVs, which can still run on traditional fuel as well as electric power.

With the PHEV share in China only 21%, and 32% at the global level, European buyers are better placed than most to chose from a deep and varied EV pool that meets their usage needs.

And with more charging stations and purchasing subsidies in the pipeline from governments that are eager to wean the population off expensive and high-emitting fuels, Europe's collective purchasing clout looks set to keep climbing and may in time overshadow current EV leader China.

The opinions expressed here are those of the author, a columnist for Reuters

Our Standards: The Thomson Reuters Trust Principles.

Oil prices steadied on Friday, but fell for the week on a stronger U.S. dollar and fears that an economic slowdown would weaken crude demand.

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