The latest forecasts from global technology intelligence firm ABI Research indicate a 21% increase in global Electric Vehicle (EV) sales for 2024, followed by a 19% growth in 2025. This marks a notable decrease from the growth rates of 31% in 2023 and 60% in 2022.
Dylan Khoo, an Electric Vehicles Industry Analyst, notes that the slowdown in the EV market cannot solely be attributed to charger shortages or limited ranges. Despite improvements in charging infrastructure and range capabilities, OEMs are struggling to meet their targets, indicating broader market challenges.
In Germany and the United Kingdom, EV sales growth has stagnated significantly due to the withdrawal of subsidies, impacting the overall narrative for Europe’s largest car markets. However, two-thirds of European countries witnessed higher growth rates in 2023 compared to the previous year.
In the U.S., sales challenges stem from an over-reliance on Tesla, particularly as the market shifts towards mass adoption and early adopters diminish.
China’s EV market is experiencing linear growth, with EVs capturing a 36% market share in 2023 and projected to surpass half of all car sales by 2025. Companies like BYD have played a crucial role in driving down EV prices, making them competitive with Internal Combustion Engine (ICE) equivalents.
Khoo emphasizes that China’s success in promoting EV adoption serves as a model for other regions. To replicate this success, automakers in Europe and North America must offer a diverse range of EV models at attractive prices. The situation is expected to improve with the establishment of new battery gigafactories and the introduction of more EV models in the coming years.
