The global electric vehicle (EV) market has continued to show growth in the first half of 2024, with new light-vehicle sales increasing by 3.7%. Within this segment, battery-electric vehicles (BEVs) and plug-in hybrid vehicles (PHEVs) saw a 22% year-on-year increase, totaling 1.35 million units. EV Volumes founder, Roland Irle, discussed the progress of plug-ins with Autovista24 editor Tom Geggus.
The growth of new EV deliveries was consistent throughout the first half of the year, with February being the only month that did not record double-digit growth due to the Chinese New Year. While the growth in EV sales is promising, it does represent a slowdown compared to the previous year, where the market saw a 35% increase in deliveries.
China remains a driving force in the global EV market, accounting for 60% of electric vehicle sales worldwide. In June, BEVs and PHEVs made up 46% of the new-car market in China. The country also saw a significant increase in EV sales, with a 31% year-on-year surge in the first half of 2024, outpacing overall vehicle sales.
On the other hand, Europe is experiencing stagnation in EV deliveries following exceptional growth in 2020 and 2021. While the overall new light-vehicle market in Europe grew by 5.2% in the first half of 2024, EV sales only saw a 1% increase. This slowdown can be attributed to the reduction or removal of purchase subsidies for EVs in many European countries.
In the US, the Inflation Reduction Act (IRA) effects are wearing off, causing uncertainties and challenges regarding vehicle eligibility for grants. Despite this, EV deliveries in the US increased by 12% in the first half of 2024, surpassing the overall light-vehicle delivery growth of 3.2%.
Other markets such as Brazil, India, Thailand, Turkey, Mexico, Indonesia, Taiwan, and Malaysia recorded triple-digit growth in EV sales, albeit from lower bases. However, Japan and South Korea seem to be experiencing a decline in their EV markets.
While there is a slowdown in EV growth globally, the market is still expanding, with a 22% increase in the first half of 2024. EV Volumes projects total EV sales to reach 16.5 million units worldwide this year, a 16% increase from 2023. China is expected to account for 10 million units, Europe for 3.3 million units, and North America for 2 million units.
Overall, EV sales are still on the rise, outperforming the total market growth. While Europe is currently facing stagnation in EV deliveries, efforts are being made to meet upcoming fleet emission targets. The future of the EV market looks promising, with PHEVs gaining ground globally, especially in China where extended-range electric vehicles (EREVs) are becoming increasingly popular.
