The latest insights from ABI Research reveal a notable deceleration in global Electric Vehicle (EV) sales growth, with projections indicating a 21% increase in 2024 and a further 19% in 2025. This marks a significant decline from the robust growth rates of 31% observed in 2023 and a staggering 60% in 2022.
Dylan Khoo, Electric Vehicles Industry Analyst at ABI Research, suggests that while factors such as charger shortages and limited ranges have historically been attributed to the EV market's challenges, the current slowdown cannot be solely attributed to these issues. He notes that sales data and OEM statements indicate a broader stagnation in the EV sector, with regional-specific trends playing a pivotal role in driving these changes.
One of the primary contributors to the slowdown in EV sales growth is the withdrawal of subsidies in key markets like Germany and the United Kingdom. This policy shift has led to a notable deceleration in these regions, despite the fact that two-thirds of European countries experienced higher growth in 2023 compared to the previous year. In the US, the market's overreliance on Tesla has become unsustainable, as the supply of early adopters diminishes and the market transitions towards mass adoption.
Conversely, China's EV market is experiencing linear growth, with EVs capturing a remarkable 36% market share in 2023. Projections suggest that EVs will comprise over half of all car sales in China by 2025. Companies like BYD have played a pivotal role in driving down the price of EVs, making them increasingly competitive with Internal Combustion Engine (ICE) equivalents. China's EV transition, largely independent of Government subsidies, serves as a global model for successful EV adoption strategies.
Khoo emphasises the importance of automakers offering a diverse range of EV models at attractive price points to stimulate consumer demand. He notes that Europe and North America must address supply chain challenges and ramp up production of battery gigafactories to expand EV offerings and drive adoption in the coming years.
Photo is representational; courtesy: BYD
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