NYREADERS.COM - The global electric vehicle (EV) market is projected to expand significantly in 2024 as countries continue their efforts to reduce emissions on the back of falling consumer spending and subdued global economic recovery.
Energy research agency Rystad Energy forecasts EV sales to reach 17.5 million units this year, an 18.5 percent increase from 2023.
As a result, the share of new car sales that are either battery electric (BEV) or plug-in hybrid electric vehicles (PHEV) will increase to 21.8 percent at the end of 2024 from 19.2 percent in 2023.
Who is leading the way?
The answer is China. According to Rystad Energy, China will play a significant role in the market's continued expansion thanks to sizeable growth in its domestic production.
“We expect about 11.5 million new EVs will be sold in the country this year, a 44 percent share of all new car sales,” it said in its latest market update.
China is dominant in the global EV sector, accounting for 69 percent of all new EV sales in December, and continued growth is on the cards. Last year saw a 37 percent annual growth in sales, with approximately 9 million new EVs sold and a market share of 34 percent.
The country has also advanced its EV penetration targets, aiming for a 45 percent market share by 2027, an increase from the originally planned 40 percent by 2030.
With local players continuing consolidation, this strategic move opens a critical window for non-Chinese automakers struggling to gain a foothold in its booming EV market.
In December alone, 1.13 million units of cars were sold in China, a 16 percent surge from November and a 50 percent increase from the same month in 2022. BEVs accounted for 27.6 percent of car sales for the month and 40 percent of all sales.
The total EV sales in December represented 4.3 percent of total car sales in the country, which amounted to 36.5 million units.
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