EV sales to slow down in 2024, with a projected increase of 21%

Date: 12/04/2024
ABI Research reported that the growth of Electric Vehicle (EV) sales is expected to slow down significantly in 2024, with a projected increase of 21%, down from 31% in 2023 and 60% in 2022. Despite concerns about charging infrastructure and range limitations, these factors aren't solely responsible for the decline. Regional trends and policy shifts are playing a significant role in shaping the EV market landscape.

Further findings shared by ABI includes:

Stagnation in EV sales growth in Germany and the United Kingdom due to subsidy withdrawals.
Over two-thirds of European countries experienced higher growth in 2023 compared to previous years.
Unsustainable reliance on Tesla contributing to sales problems in the U.S.
China's EV market experiencing linear growth, with Evs capturing a 36% market share in 2023.
BYD driving down EV prices, making them competitive with Internal Combustion Engine (ICE) vehicles.
Transition towards Evs in China no longer dependent on government subsidies.

“A shortage of chargers and limited ranges are not to blame for this decline. It's evident from sales data and statements by Original Equipment Manufacturers (OEMs) that the EV market is slowing down and failing to meet its targets. While insufficient charging infrastructure and range limitations are often cited as reasons for this slowdown, they don't fully explain the stagnation, especially considering that these aspects are actually improving rather than deteriorating. Additionally, these explanations fail to consider the region-specific trends driving the EV sector changes,” says Dylan Khoo, Electric Vehicles Industry Analyst.

“China has set an example for the world to follow and demonstrated how to win over the public with Evs. If automakers can make a wide range of Evs at an attractive price, people will buy them. It is here that Europe and North America are failing, a situation unlikely to be rectified until new battery gigafactories become operational and more models become available in the latter half of the decade,” concludes Khoo.

Source: ABI