Report says, global passenger vehicle will see a significant EV shift in the next few years as ICE vehicles demand will continue to decline.
Battery electric vehicles (BEVs) are poised to reach 10 million units by 2024, achieving a milestone in the global passenger vehicle market.
According to a report published by Counterpoint, this achievement will align with the continued decline of internal combustion engine (ICE) vehicles, which are expected to fall below a 50% market share within the next four years.
The report has highlighted that despite a brief downturn in 2024, BEV sales are anticipated to sustain their upward trajectory as established automakers address profitability hurdles.
Redesigning manufacturing methods and forming strategic alliances with battery producers will foster growth. These initiatives aim to reduce production costs, create more accessible EVs, and strengthen supply networks.
Furthermore, as traditional automakers transition to EVs, hybrid vehicles like PHEVs and HEVs will remain prominent due to stringent emission standards worldwide.
Automakers are prioritising hybrids until achieving cost-effective BEV production and stable supply chains, supporting industry goals of transitioning to electric mobility, necessitating investments in charging infrastructure and grid improvements.
As per Counterpoint, China continues to dominate the BEV market, with projected sales in 2024 expected to be four times higher than those in North America. China will also maintain a majority share of over 50% in global BEV sales until 2027.
By 2030, it is forecasted to surpass North America and Europe combined in BEV sales. Starting from 2025, Europe and the US will increasingly contribute to market growth.
The Chinese company BYD is poised to increase its BEV market share in 2024, potentially surpassing Tesla in BEV sales. This transition, as the report says, highlights the dynamic evolution of the global EV market.
Liz Lee, Associate Director at Counterpoint, noted that the EU’s new tariffs on Chinese EVs aim to support European manufacturers against cheaper imports. She suggested these tariffs might redirect Chinese automakers to emerging markets, while future EV market dynamics hinge on EU-China negotiations, with growth expected in Europe and the US from 2025.
Commenting on the global shift to EVs, research Analyst Abhik Mukherjee mentioned that automakers such as Ford, GM, Stellantis, and Volkswagen are restructuring supply chains and preparing to manufacture affordable EVs priced below $35,000.
Mukherjee emphasised that these changes aim to rival market leaders, comply with rules, and capitalise on subsidies and demand, revitalising the global BEV market by late 2025.
